When you donate your car to charity it will allow charities to help those in need locally and around the world. Humanitarian organizations led by volunteers may provide relief to victims of disasters and helps people prevent, prepare for, and respond to emergencies. You may even save on your taxes by donating your car to charity today.
Alternatively, if the charity significantly uses or materially improves the vehicles, they will certify this intended use and duration and provide an acknowledgement to the donor within 30 days of the contribution. If the charity significantly uses or materially improves the vehicle, generally, the donor may deduct the vehicle’s market value which allows a great tax deduction via car donation.
Check that the Organization is Qualified as taxpayers should make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can use the IRS Web site to check that an organization is qualified by searching Publication 78. Publication 78 is an annual, cumulative list of most organizations that are qualified to receive deductible contributions. Publication 78 is also available in many public libraries.
In addition, taxpayers can call IRS Tax Exempt and Government Entities Customer Service at 1-877-829-5500. Be sure to have the organization’s correct name and its headquarters location, if possible. Churches, synagogues, temples, mosques and governments are not required to apply for this exemption in order to be qualified. They frequently are not listed in Publication 78. Car donations to these institutions are tax deductible.