While a car like a big enough issue to donate, there is considerable value in doing so for the giver and the receiver. Charities and churches often are sometimes not able to buy new cars when they need them. If you are interested in donating your car to a church or a respected pastor, you just need to follow some important steps to ensure the car arrives and person.
Assess the value of your car donation. Using online sources or book to determine what your car is worth. Edmunds is considered to be a reliable choice for the assessment of value of a used vehicle, such as Kelley Blue Book. Be fair in providing a value for your vehicle. Consider the quality of your car and give real value to it.
Ask about a fee for disposal. Some churches or charitable organizations charge a fee to collect your car will be donated. If the minister well knows, you may just be arranged for this or just give yourself cost. Either way, find out how delivery is handled.
Verify that the church has 501 (c) (3) status. Most religious organizations automatically have this tax regime, but in order to receive a deduction on your tax return, you will need to ensure that the church minister can legally receive the donation by requesting a copy of your 501 ( c) (3) certificate. Otherwise, you might have problems with the tax credit on their records, and given the size of the deduction that will provide a car, the IRS will not overlook.
Transfer the title. Make sure that the change of ownership has been completed so not responsible for future legal problems that relate to the car, something as simple as a parking ticket can be your responsibility is if the new owner does not clear . Contact the Department of Motor Vehicles or any other appropriate state office to confirm that no longer own the car and has been transferred from his name.
Acquire a tax receipt for donations. Request written confirmation of the church or the minister who is donating the car. This is a paper trail to prove that you have legally donated the car and you can claim the deduction without penalty. Make sure the receipt of written taxes includes the name of the minister and the church, the number of church tax date that donated the vehicle, make and model of the vehicle, and the price of the gift, and your name .Have the church minister or representative sign as an acknowledgment of the vehicle.
Complete IRS Form 8283 for your records. This form should be attached to your tax return as tax proof itself. Store these together so you know where they are when tax day rolls around.
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