DONATION OF VEHICLE

Ever since 1996, the charity realm has been infused with a fund raising boon created by the easy donation of a vehicle; a process that is quite easy and hassle-free. However, there are some helpful facts on easy donation of a vehicle that may be utilized as guidelines in choosing the right charitable organization, as well as operating within the legal scope of the IRS.

Every donation of a vehicle entails a minimum of requirements that may be filled by anyone who possesses the title, registration and keys of the car slated to be contributed. Moreover, charitable organizations are willing to defray the costs of towing services, provided that the value of the vehicle surpasses the amount charged for said services.

It would be paramount for every altruistic soul to consult whether a charitable organization, as per the IRS specifications, is qualified for tax deductions; otherwise, your deduction claim would be void. Therefore, in order to avert or elude the luring ploys that are currently being utilized by a few expedient donation agencies, it would be wise to adhere to the IRS Publication 78, Cumulative List of Organizations.

As per IRS indications,once a vehicle is auctioned, every charity is obliged to send the donor a notice in which it provides the value of the winning bid. This information may be utilized as a tax deduction claim that falls within the legal spectrum. However, you must be wary of the aforesaid luring ploys, such as those that offer hotel vouchers in exchange for vehicle donation. When donors fall for this, they could be setting themselves up for a potential audit, because they might be unaware that said vouchers ought to be subtracted from the original deduction claim; and hence, their omission would be misconstrued as a delinquent understatement. Caveat Donator, Donor Beware.