The best part of car donation is the tax write off, which comes along the donation. While considering the charity you want to donate your vehicle to, make sure to check the tax exemption status of the charity.
The car donation process is a unique solution to get rid of the old unwanted car that might be sitting around the junkyard taking lots of space. Not only does it help one avoid the painstaking task of having to sell one’s vehicle privately, but it is beneficial from a tax standpoint. Read on this article to know how to donate car NYC.
Deciding if Donating A Car is the Right Thing to Do:
One of the most important things that comes to mind while thinking about a car donation is whether or not it is the right thing to do. You may be torn between ideas of donating your car and selling it own your own. Keeping it for good measure won’t help you with either cases. Hence, consider the following things while deciding if a donation is right for you.
If you want to make money on the sale of your vehicle, then a donation might not be right route. A car donation won’t fetch you money at the time of donation. The only payment you will receive will be in the form of a car donation tax deduction.
You will also be able to consider whether or not your car is even worth selling. While donating it proves to be a time efficient effort, selling it may be both time consuming and tiresome effort despite the money received as a result of the sale.
A car donation can also provide other types of rewards that hold no less value than any amount of money received from a sale. There are some reputed charities that conduct car donation programs to raise fund for things like sickness and disease research, public education on health matters, and more. If you want to contribute to these, then donating your car would be more convenient option than simply selling it outright.
Does Your Vehicle Meet the Requirements:
Once you decide to submit your car, be sure to determine if the car qualifies for the donation program that you want to donate it to. Some charities follow certain criteria while receiving any vehicle, while there are some that don’t have any specific requirements in place for cars the receive into their donation programs. Evaluate and assess the condition of your vehicle to ensure that all program requirements are met.
Find the Right Charity:
There are lot many charities that have begun to adopt car donation programs as a way to raise funds for the underprivileged children and poor community. However, finding the right charity may require a little bit of online research and legwork, for most of the reputable charities have their online presence nowadays. Once you have located the charity you want to donate your car to, you will be required to fill up a request form.
Taking Advice from IRS:
The IRS has itself become aware of the rapid increase of car donation programs rub by fundraisers which end up insidiously stealing a bulk of proceeds they receive for donated cars. The IRS advises the donors to contact the people running it before they donate a car in New York. Ask them if you have any query regarding the donation as to whether they are charity officials or private group acting for the charity.
In case the charity is run by private group, find out exactly what they want to do with the donated car or where the proceeds will go finally. Try to know whether or not the car will be repaired or given to the charity to help in its work. Do they want to auction the car off and if so, how much of the proceeds will go to them, and how much to the charity. Also check if there are any vendors or third party associated with the car donation process.
Preparing for Donation:
Depending on the donation program you choose, you might be required to carry out some preparation tasks. In certain cases, you might be also required to collect information about their vehicle such as the make, model, year, VIN, mileage, and title. In expedite the donation process, make sure that you are done with all necessary paperwork required as instructed in the program details.
Making the Call:
Once you are done with all such preliminary tasks such as completing donation requirements, gathering all necessary paperwork and information about your vehicle, all you are left to do is to make the call to arrange your vehicle. You will find that almost all donation agencies or charity organizations are very accommodating during this process. Once you make the call, they will arrange a shipment for your vehicle that will be picked up at no cost to you. Remember, the paperwork is mandatory for that will be required in order to claim your car donation tax deduction at the end of the year.