Car donations
We've all seen commercials and print ads asking for donations of old cars and boats to help a charity. The most frequent time to see these ads is around Christmas and the end of the year. This timing is intentional for a couple of reasons. The holidays are typically a more generous time for people to give to charity. Perhaps they get into the holiday spirit of sharing.
Another reason is that people are taking actions to impact their annual taxes and those transactions have to take place before the end of the year. Whatever the reason, many charities do get valuable help from donated cars. The requirements and procedures do vary a bit from one organization to the next.
Most companies that handle the car donations for charities do not require that the car be in running condition. However most do require that the car have an engine and be in a condition where it can be towed. Some companies may decline to take the car if they decide that the car will not be worth the expense of towing it.
States like California have smog inspection requirements on running cars. This requirement is not in effect for donated cars. The car does not have to be currently registered with the state but the person making the donation must be the legal title holder.
Charities will contract with a tow company to handle the pick up of the cars. The tow company will give you a receipt at the time the car is picked up. Most cars will be taken to auction. Within thirty days of that auction you will receive an acknowledgment of the sale. If the car sells for more than $500 the IRS requires completion of forms 1098 B & C.
The proceeds from the auction are returned to the charity. There is usually a processing fee that will remain with the towing company. In some cases the car is not suitable for auction and may be sold for scrap. That money too is given back to the charity. Usually there will not be a towing fee. This may vary if the pick up requires the towing company to drive out of their normal territory.
People choose to donate their vehicles for several reasons. Some don't want to deal with the hassle of selling the vehicle. Some find that the cost to repair the vehicle is more than they are willing to spend. In states with smog regulations, owners may find that the car won't pass inspection and would be too costly to fix. In other cases owners may feel that the car is no longer safe to drive on the road. And for some the desire is to get a tax write off.
Whatever the reason, it is nice to know that a charity can be helped with the donation of an unwanted car. And many programs take much more than cars; they also take motorcycles, ATVs, motor homes, boats, jet skis and even farm equipment. Donating is easy and the tax deductions can help your personal finances. Check with your favorite charity to see if they currently have a car donation program.
About the Author
frank j vanderlugt owns and operates http://www.car-donations-charitable-donations-aacharity.info 2 Cardonationscharitabledonationsaacharityinf
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