Should I donate my car for cash or to a charitable organization?

Do you think the last car to get rid of old, dirty, that your house has been sitting outside for years? Why not donate your old car? Car donation offers a wide range of benefits such as more environmentally friendly through recycling, contribute to charities and other tax incentives. Here are some important points that could do that in that case or to donate your car to the decisionCharity.

Donate a car in cash

One of the main advantages of donating a car, especially in times of economic difficulty, the money is returned as an incentive or equivalent for your old car. donation drive, you can turn an end of tax year. How much can you write off on taxes depends on the market value of your car, up to $ 500 or the equivalent of the gross selling price. Mainly because of the abusesSystem, current state law that owners can no longer use the market value of vehicles more than $ 500. If your car is worth less than $ 500, you can deduct some fair market value through the Kelley Blue Book or NADA guides.

cash equivalents for the donation of cars

Some programs offer partial cash car donation donors call spiffs. Spiffs are gifts "donation", given by the charity in exchange for yours. These cashequivalent payments from the proceeds from the sale and are typically reserved for donations of high quality. This is a win-win-set, because love is given a higher premium for their programs and you, the donors also reap greater benefits at the same time. Some popular spiffs include overnight stays in hotels in popular resort areas, free entry to exclusive clubs, discounts on airline tickets. cash prize and cash equivalents donors are starting to be a popular money-makingScheme and that is why many people use them for commercial gain benefits. Make sure your chosen car donation program is reputable and tax qualified (non-profit) organization to avoid problems with IRS.

Donate a Car to Charity

When you give your car to charity, you are investing in charities for help, I want that too. Some car donation programs popular than strictly voluntarySpeakers Habitat for Humanity and programs for veterans who have served our country benefit. Even if you do not receive cash in hand, there are tax incentives that may be collected through your donation. Your chosen school will receive a valuable resource and you get self-satisfaction of helping others.

However, non-profit car donation disadvantages include additional requirements for the documentation required by the IRS. Of course this isdepends on the declared value of the car. The higher the value, you can flag the attention of tax authorities. Even still, as an alternative to the car the extra paperwork is a sales order and enter your part of the proceeds to charity later. In this way you can have documentation for the donation and back to give an asset to the charity.