Why You Should Contemplate a Vehicle Donation

Any person who is contemplating a vehicle donation will find that he will derive many benefits from such an act. The word donation here itself implies that the vehicle will be given to a charitable organization. The organization in turn might sell the vehicle you have donated and use the proceeds in its charitable endeavors. It might choose also, not to sell the vehicle but use it in its day-to-day activities. It could for example use the vehicle donated by you to deliver food to the underprivileged.

Not only does one get a feel good feeling from a vehicle donation, a person can also claim tax exemptions from doing so. It might be a good idea to talk with your tax consultant and / or peruse the IRS website to see how you can use this to your advantage.

There are many reasons why people contemplate a vehicle donation. It could be entirely altruistic. Or a person finds that he is not getting a good price for his vehicle, so he decides that donating it will not only save space but also avoid the bother of junking the vehicle. When he decides to donate, the company which accepts the donation will take care of collecting the vehicle and disposing it etc.

There are some other things which the IRS website will tell you. It is common sense as far as I am concerned. The first is that you should know about the charity you are donating your vehicle to. Are they registered with the right authorities? It is better to be cautious about whom you you donating your vehicle to. You should be aware that they are numerous amounts of unscrupulous operators who pose as charities. You should also know that if you donate your vehicle to organizations which do not appear in the list which the IRS has, you will be ineligible to get a tax rebate. A good point of reference is Publication 78. This is available in the IRS website. Most public libraries also have this list. If the charitable organization you are donating to is not in the Publication 78 you will most likely not be able to avail of the tax benefits.

The next thing you should consider is with whom you are dealing with when you are contemplating a vehicle donation . Are you talking directly with the charity or are you dealing with a third-party? There is nothing wrong in dealing with an organization that is in the business of accepting vehicle donations. It is just that, that you should be aware that these organizations will be selling your donated car to the charity. They will most certainly be getting a cut from the deal. No big deal as long as you are aware of that fact. In fact dealing with them will save you the bother of transporting your car to the charity. Just make sure that you are dealing with an accredited party. It also would help if the organization you are dealing with is in your vicinity. Do not deal with somebody who is far away from you.