 |
| car donation |
The hard part is making sure the non-profit deserves your gift and that you are confident the organization is spending its resources wisely. The first step is to identify a charity that engages in work that is meaningful to you. For some, that will be helping to feed poor children; for others it will be the local animal shelter, and for others still it will be their religious institution. There are thousands of non-profits to choose from. The most important thing to verify is that the charity you choose can receive tax-deductible gifts. Most of the time that means it must be registered with the IRS as a 501(c)(3) nonprofit. Ensure You Can Donate Your Car Once you've identified a couple non-profits in the area you'd like to support, find out if they accept used cars as gifts.
Not all non-profits are equipped to handle that type of donation. If they do accept cars as gifts, you can then narrow down the list. You can do this by checking each organization's Charity Navigator rating. You can also look up their tax filings on Guidestar, where you can see their financial profile and how much their highest paid employees are compensated. Additionally, another great way to research a charity is by visiting the non-profit to form your own opinion of the work they do.
Advertisement Tax Deductions for Donated Cars The deduction you can take on your tax return is based on the fair market value of the car. You can start to determine that by visiting Kelley Blue Book or the NADA Guides, which both have excellent used car rating tools. However, keep in mind that these book values are generalizations. For example, if you determine that your car is worth $5,000, but you know it doesn't start because it needs a new battery, the fair market value is $5,000 minus the price of replacing the battery. You can learn more about taxes and your donated car by visiting our Tax Deductions & Car Donations page.
