Tuesday, August 14, 2007

Used Car Donation - Gift That Gives Back

Tis better to give than to receive. Many millions of people, down through the centuries, have tried to live their lives according to that tenet. And the world has been made a far better place because of their efforts.
But suppose one could both give, and receive, all in the same transaction? How many people would find that idea appealing as well? If you’re one of them, there might just be a way which you can give life to the idea, and it’s as close as your driveway.
A used car donation to the charity of your choice will give that charity a vehicle which might help them in the course of their work; or it might give them funds to support their work if they choose to sell it. A food pantry, for instance, might use the car to pick up donations or to ferry those who need it help back and forth from their homes. A senior citizen center might use it to take people no longer able to drive to their doctors’ appointments or just out for an excursion. Your used car donation might bring more joy others than you can ever imagine.
But you used car donation will not only give to others; it will allow you to receive a financial benefit in return. If you itemize your deductions, and you tax bracket permits, you’ll be able to take a tax write-off on your used car donation. If the charity uses your used car donation in its work, you can deduct the fair market value of the car as determined by Kelly’s Blue Book.
If, however, the charity chooses to sell your used car donation, you can deduct the entire amount of the sales proceeds, unless it is smaller than the Blue Book value, and then you can deduct the Blue Book value.
But to make sure your used car donation will qualify you for a deduction, you must first determine if the charity is recognized as a non-profit organization according to Section 501 of the IRS Tax Code. The charity officials will be able to tell you, and if you can’t get a clear answer from them, look for an alternative.
If your car is valued between $500 and $5000, you’ll have to fill out IRS Form 8283, which you can download at irs.gov, and for cars of higher value, there are further requirements. But you can sort through all of them at the IRS website.
Making a used car donation is a great way to relieve your self of the cost of maintaining, registering, and insuring a car which you no longer need, getting a tax break, and most importantly, helping those less fortunate!
You can also find more info on Used Car Donation and Car Donation. 1cardonationservices.com is a comprehensive resource to know about Car Donation.

By Wade Robins

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