Obtaining the Right Value or Fair Market Value When You Donate Car to Charity
Putting your car in a donation to any charity is a win-win situation for everyone. You get the fair value for the car, and the charity can also make good use of it. They can give it up to someone in need, use it for the personal commute or sell it to earn from it. In addition to that, the owner gets good tax redemption if they donate the car to charity.
However, as per the latest rules, the redemptions and good market are only possible in case of proper documentation. Moreover, there are many other considerations that one has to keep before planning to donate a car to charity:
Things to consider before donating a car to a charity
Look for a qualified charity
As many people started donation to get tax redemptions, IRS changed the rules. There are now designated charities that are licensed to take tax-redemption donations. So, you need to explore and find out the qualifying organisations to donate a car to a charity. It generally has organisations that support education, humanitarian acts, and likewise.
Get the Car Value Estimate
Before donating, you need to get a fair estimate of your car’s value. You can get in touch with an auto-wrecking organisation. They will do the necessary mileage and body condition test and give you a price you can expect from your donation. Moreover, these organisations can also help find the apt organisation to make donations.
Complete the Documentation
It is a significant part of the donation. Firstly, you need to keep the donation documentation sorted and get all the proofs from the charity also regarding the donation. Furthermore, if you wish to get tax redemption, the charity needs to provide you with documentation about what they did with the car. The process will remain incomplete if you do not transfer the car ownership to the charity.
Keep these things in mind and follow all the rules to turn it into a fruitful deal. You might need to do extensive research to find the right charity and to fulfill the documentation, but in the end, it will be all worth it!