A charity vehicle is an automobile, be it car, truck or motorcycle that has been donated to charity. Charitable institutions can use these for their own purposes or sell them and utilize the funds. A charity vehicle is tax deductible. If you have an old vehicle that you do not use, consider donating it to a charitable institute instead of selling it. You can do some good with a car that is of no use to you and at the same time also save money by getting tax deductions equal to the amount you would have sold your car for in the market.
But not all charity vehicles are tax deductible. To ensure that you get your proper due, you should take certain precautions before donating your used vehicle. Make sure that the charity you are donating to is approved by Internal Revenue Services. Only recognized non-profit organizations are eligible to receive tax deductible automobile donations. You can find a comprehensive list of all qualified charitable institutes at the official website of Internal Revenue Services or even in public libraries. Make sure the charitable institute gives you a receipt for your charity vehicle. You should preserve all documentations and records while donating your automobile. Find out the exact fair value price of your charity vehicle as that is the maximum amount of tax deduction you will be eligible for. Internal Revenue Services has also published a free guide providing step-by-step instructions regarding vehicle donations.
Although most non-profit organizations that are recognized by IRS are honest yet fraud may exist in some places. You should find out how and where your vehicle is auctioned and how much money did it fetch. If you are donating your car to a charitable institute that is not well recognized, make sure you get some reliable references first. There are many well known charity donation programs that are always eager to provide this information to the donors and reassure them that their charity vehicle is being used only for the purpose it was donated for. Remember, one charity vehicle can bring smiles on a million faces.
Written by CharityDispatch
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