If you are keen on helping a charitable organization in addition to getting tax relief, then, you will have to keep a few tips handy.
Tip #1: Avoid agents
The minute you say you want to donate a car, there will be a number of agents, commonly referred to as middlemen, who would be more than willing to offer their services to you. Do not fall for billboard advertisements from many organizations that offer to help you donate your car.
Most often than not, these organizations have an ulterior motive. Close to 75% of the total market value of the vehicle will go to the middlemen rather than the charitable organizations that need it the most. Hence, in order to overcome this problem it is recommended that you give away the car to the charity directly.
Tip #2: Find the charity of your choice
Before you just give away your car, have clarity of the charitable organization that you would like to help. You can choose from orphanages, old age homes and homes for the disabled and sick people. You can look on the internet or ask friends and family members about charities that are looking for help.
Another important point in mind that you will have to keep in mind while choosing a charity is the eligibility for tax relief. Though you can get this relief by donating to most organizations that run on charity, it is always better to look up the IRS website and confirm this.
Tip #3: Deliver the car yourself
If you want to ensure that your charity gets the complete benefit of car donations, then, do not engage the services of a third person to have your car delivered to the charity. Instead take the car yourself and drop it off. This will also give you a chance to interact with the people who run the charity and understand how they work.
Tip #4: Ensure complete transfer of the car
Once you hand over your old car to the charity of your choice, ensure you complete the entire transfer procedure. If you are keen on eliminating problems like traffic violations and parking tickets sometime in the future, then ensure you transfer the ownership completely to the charity. Ensure you keep the local Department of Motor Vehicles updated about the transfer of ownership.
Tip #5: Make sure to keep all important papers handy
It is important to keep all the papers related to the transfer handy since you will have to file relevant documents along with the IRS form to obtain tax relief. If the value of your donation is over $500, then, Form 8283 has to be shown as evidence and if the value is over $5000, you will need to obtain the charity's receipt and title change copy, in addition to outside appraisal details.
