You can have the right intentions when it comes to donating your used vehicle to charity. After all, you're missing out on a lucrative deal to buy your new car. Instead, you have chosen to help what you believe is a worthwhile charity.
Not all charities offer tax breaks, nor do all charities take full advantage of your donations. You can even donate your used car to help the needy people.
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You should consider the following when making a car donation:
1) Charity Status – You can only benefit from tax breaks if the organization receiving your vehicle is truly generous. Before donating your car, ask for proof, otherwise, you will not receive any tax benefits for your campaign.
2) Direct Donations – If possible, donate directly to the organization you wish to benefit from your donation. If there is an intermediary, the person or company will reduce a portion of the vehicle's sales by donating less money to the organization you want to use.
3) Arrange Delivery – Be careful who owns your car. Even if no intermediary is involved in the process, the tow truck driver can no longer take your car and pass the tow fee on to the organization. This means that your donation is of lesser value; instead, try to leave your donation.
That's right, you can complete your donation within a few days of contacting the charity. Then make sure you get the correct paperwork so you can write off the cost of your gift at tax time.