Kids And Car Donation
When you give your car to charity, it can help children in numerous different ways. Based on the
kind of charity to which you donate your car, you might be helping to fund essential programs or
you may directly affect a poor child's life by making it possible for a parent to work. Here's what
you should know about car donation charities.
Direct Donations vs. Car Donation for Sale
You will find two various kinds of car donation charities. The first type takes donations of cars
that may be fixed, then gives or sells them at a minimal amount to families in need. The families
should meet very specific guidelines, such as a requirement that the car will allow a person in
the family to get or keep a task. The second kind of program accepts car donations of working
automobiles or those that require very small work and sells them at a profit, which is donated to
a children's charity or used to finance the charity's own work.
Donating Your Automobile for a Charity's Use
There is another category of car donation - donating a car to a charity for the charity's own use.
For example, you may donate your van to a local children's charity which outfits it with safety
features and utilizes the van to transport children to recreational programs, or to pick up and
deliver meals to low-income families.
Tax Treatment of Vehicle Donations
The type of charity donation is important because it affects the amount of the deduction you can
make on your taxes. Based on the use made of your car after you donate it, you might be able
to deduct its full Blue Book value from your gross income or only the amount that the charity
realized when selling your car. Before you sign any documents, be sure that you understand
exactly what you'll be able to deduct from your taxes when you file. Unless the automobile has a
really low value to begin with, you'd do best to consult your tax accountant or a financial planner
to assist you decide the best way to donate your vehicle to charity.
What Happens When you Donate Your Car
In most cases, donating your automobile to a charity for kids is a easy process on your end. You
call the charity and let them know that you want to give your automobile to charity. An agent of
the car donation agency will meet with you and give you an appraisal of the car's worth. He will
also bring paperwork for you to sign. The paperwork is your receipt and ought to include the
name and address of the charity, the value of your donation and any other information that your
state and the federal government require the charity to collect. If the charity plans to sell the car
and use the profits for their charitable works, they will explain to you when and how they will
notify you of the final selling cost of your vehicle, which will dictate the amount you can deduct
as a charitable donation on your taxes.
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