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By undertaking pilgrimage to holy places and participating in 'Satsangas' (congregations) one leads towards charity, individually, combined or by some other way which is very much desired for the needy and down-trodden for their upliftment. Pilgrimage without imbibing virtues will remain and mean only some distance covered and journey undertaken without purpose. No doubt holy places give refuge to the weary souls, make us humble and help in enhancing our spirituality. Charity is an act of great sacrifice, graciousness, piousness, nobleness, compassion, forgiveness and one of the virtuous qualities for absolving one's adversities. One who gives charity feels the pinch of problems of others as his/ her own. Happiness and grace multiplies by sharing with others.
One should not accept charity from atheists and those having sense gratification for the purpose of maintaining sanctity. Some of these charities are compassion, land donation, material charity, charity of cow, charity of maiden, donation of limbs after death, education, charity for peace and charity for food which is the most pious service to the poor and needy. In fact charity given to a needy person for education is a permanent one as it removes one's ignorance. Knowledge and wealth are God's gifts which must be shared with others to enjoy and fructify. Charity of education is given in secrecy as education and intellect cannot be stolen, being hidden treasures, and is helpful even when one does not possess money. An educated and learned person does not possess destitute qualities and he is not an encumber on earth. Some prefer secret charity without revealing their names, as they believe that their left hand should not know what the right one gives.
Blood donation to save some one's life is also a supreme act in the service of mankind. For the infertile couple the donors of eggs and sperms can help in conceiving and giving new lease of life to the dismayed and emotionally shattered people. Those who have absolutely nothing to give can at least devote their precious time for the benefit of the needy. With charity of love which is instilled in us by the parents, saints and erudites by drenching us with nectar of love we can inculcate brotherhood and friendship towards all irrespective of caste, creed, colour, sex, religion and underprivileged etc. and reinstate them into the main stream of life otherwise they will be alienated from mankind and society. This also gives them emotional support. In short, charity is nothing but service to the needy. It is marvelous act and the donor is placed in heaven on this earth itself.
We should contribute and share our possessions with others as the trees, rivers, seas and mountains do without discrimination. Charity is a trust, which should not be considered in terms of cash or kind in quantity. Even the road does service by leading us to our desired destination without expecting any reward . Unfortunately, we share our grief with others but not our comforts and possessions. God is 'Giver' Who always fills our treasures with His bounties and marvels. His treasures are full upto the brim. He takes care even of the tiniest creature. By giving away in charity it dissipates and checkmates our craze for amassing unnecessary wealth and helps in preventing many discomforts and vices of our life. It also stops allurement of unworthy ambitions and wants.
Learn that the whole life is giving, that nature will force you to give. So, give willingly. Sooner or later you will have to give up. Besides the attitude of giving leads to spiritual progress whereas those of taking to a great fall. It is believed that charity or donations sanctify the earnings of the donor. Thus one elevates one's soul and gets salvation. It is also said that God manifests in different forms before His arch devotee, like food for the famished and consolation for the helpless etc.
Charity given with pomp and show stains its true purpose. The purity of hands is based on the charity given and shared through them with generosity. What we give to the poor, in fact we give back to Lord due to His grace .We are giving this gift of God to the weak, unhealthy, illiterate or broken-hearted, inferior and suppressed. We get satisfaction and Lord's blessings only when it reaches the real needy otherwise its purpose is lost in case the receiver becomes dependent for ever and does not try to stand on his / her own feet.
A renowned diplomat and author of Artha Shastra, Acharya Chanakya (Prime Minister of Chandra Gupta Maurya), had rightly said that we should remain within our limits even while giving charity otherwise our stocks will dwindle and we will be left with nothing except worries.
It is proved beyond doubt that one who gives in charity without expecting anything in return is benefited in health and long life. Such persons remain free from blood pressure, heart disease etc. and get peace of mind due to God's grace and blessings of the receivers and also due to their changed positive attitude towards life. The giver also gets contentment. Such a giver never tires in his virtuous actions and his treasures never exhaust but are always replenished by the Supreme Lord in a mysterious way. Also we should give as one lamp lights up many other lamps (for removing ignorance) without losing its own light. Charity is also like an intellect, the more we use the more it sharpens, strengthens and breeds. Charity is a penance for inner purification. It is the way to God realization.
The Car Donation Process
The Car Donation Process
The car donation process takes from a few days to a couple of weeks to end. It largely depends on the organization, which is actually receiving the donation. Once you have selected the charity to donate your car, call them over the phone or go directly to their office.
Once you fill up their form, they will ask you to provide the title of the car. After you show them the title and other documents, they will send a tow truck to pick up your car on the following day. You have to fill out the IRS form 4303, if you want a tax deduction option from the deal. After that, they will try to sell it as soon as possible. As selling a used and old car can be time consuming, it may take several weeks before you get their call saying, your car has been sold. If you are planning to ask for a tax deduction, you have to wait until the car is sold.
If you are lucky or your car is actually a worthy one, it will be sold within a week. A car that is in somewhat a decent state is generally sold straight away via advertisements or is auctioned off with other vehicles. The charity will then inform you over the phone or by a letter. Only after receiving their call or letter, you can ask for your desirable tax deduction.
What happens to the donated car depends largely on its physical condition. Most charities accept cars in any condition, though they prefer to get used cars that are still presentable and in good working conditions. If the condition of the car is not suitable for selling, it is usually sold for scraps.
Car donation – you must have the title with you
Car donation – you must have the title with you
If you have decided to donate your vehicle, that is good news for your community and the environment. You should, however, make sure that you still possess a title of the car before talking to any charity.
No charity will want to take risk if you do not have a clear title of the car. A clear title will prove that all financial requirements are met, all obligations of the Motor Vehicle Administration are completed and you truly are the cars owner.
Without a title and a lien release document, the car is practically worthless to the charity as they will not be able to sell it to any third party.
Most organizations in the United States accept all types of automobiles including motor cycles, trailers, cars, boats, trucks, and recreational vehicles. Experts say, the lack of adequate documentation is the number one reason for the charities to refuse car donation offers. The charities and the non-governmental organizations will simply not send the tow truck to pick up the car unless you forward them the title.
Most charitable and non-governmental organizations agree to take vehicle donations so that they can fund the programs and services they offer to the society. If they can not sell the car, why should they bother to take it in the first place? Therefore, all of us should keep the title and other related documents of the car in a safe place, no matter how awful and old, the car actually is. We will surely need it in future.
Car donation – Helping out the less fortunate ones
Car donation – Helping out the less fortunate ones
Helping out the less fortunate ones of the society is always a good thing. By simply donating your unused car to a charity can improve your karma by helping the less fortunate ones and your wallet as the process is a tax deductible one.
You will find hundreds of websites that deal with car donation. You just have to browse the net for a while and select the best possible one. The websites have information about charities in your locality and will assist you with the process. Additionally, these websites have a strong Frequently Asked Questions section that deals with laws regarding tax-deductions, phone numbers and addresses of charities in your state.
Donating a vehicle to your selected charity is an extremely easy process. The charities that accept car donations actually take any kinds of vehicles, including boats, broken cars and RVs. A little emphasize is given on condition of the vehicle. If the vehicle is worth more than the price of towing, they will take it. You have to fill out the IRS form 4303, if you want tax deduction from the deal.
Value of the deduction varies, depending on the value of your car. There are thousands of car donation programs available in the country, some support local non-profit radio, TV and newspapers, some support humanitarian causes.
If you have an old-beat up car that you do not use anymore, why not donate it. It will surely help someone who is in need, and the move will get you a little more notes back from the tax personnel.
Give And You Shall Receive Through Car Donation
Give And You Shall Receive Through Car Donation
There is nothing more annoying than a cramped up garage or the wasted space an old car takes up. While your teenage kids probably won't gush over the thought of using your old car, a charitable institution definitely won't mind taking your outdated cast off. Aside from the advantage of getting that garage space back, a car donation has great advantages such as: feeling good about yourself, helping people in need, and the best part? Getting tax breaks.
Donating cars is not entirely a new idea. That is why the IRS formulated new rules regarding tax deductions when you donate a car. The internet makes car donations appear as easy as one, two, three, but in reality you really have to be serious in your intent in donating a car because it entails certain responsibilities.
A Deduction Of The Deduction
The IRS has certain stipulations that have to be followed for a person to qualify for tax credit. Contribution of automobiles to authorized charities may only be deducted, if the goods are summarily itemized on the tax payers schedule A in the 1040 form.
Charitable offerings have express limitations as to the amount of tax cuts that may be claimed. One of these rules expressly state that the deductions cannot be more than 50% of a tax payer's adjusted gross income although there are cases when only 20 to 30% deductions are allowable.
How Much Is the Deductible?
Generally speaking the deductible amount may only be equal to the fair or prevalent market value of your car. However, new IRS rules state that if your car is valued at less than 0 you cannot claim more than the prevailing selling price or the cost listed at guides for previously owned cars. What's more the mileage and present condition of the car must also be taken into consideration.
Claims for automobiles that are in relatively good condition, and valued at more than 0 is only up to the amount in which the charity sold the cars for. These new ordinance was implemented due to rampant falsification of the values of donated cars. Hard as it is to believe, a lot of people actually use fake certificates of donation in order to get bigger tax write offs.
Procedures In Filling For Write Offs
The most important key aspect in being able to claim tax deductions in to have excellent record and file keeping abilities, you have to be meticulous in taking details down and keeping personal copies of all the required documents.
Your chosen charity has to give you a written acknowledgement containing the name of the organization and a description of the bequeathed car. The institution also has to declare that no service or goods were given in lieu of the vehicle. In addition they must also include an estimated price appraised in good faith.
Key Things To Remember
Most people show up to charitable institution with cars in tow, forgetting that a Car Title is an essential requirement for donation. You may say, "But my car is ancient, I can't possibly find the title." To help you understand think of it this way; if people falsify donation certificates to get bigger tax cuts, then others could donate stolen cars.
In closing please note the charity, its address, the date of your car donation, a description of your car and the place it was donated in. Also, keep a copy of the written acknowledgement for yourself.
How Do You Know If Your Charity Wristbands Donation Is Getting Where It Should?
How Do You Know If Your Charity Wristbands Donation Is Getting Where It Should?
You might have seen your friends and other people wearing colorful wristbands. After all they have become a great sight and an evolving fashion trend as well. But do you know that they are actually available in large numbers as charity wristbands? And as you buy charity wristbands , all the money that you spend on them goes straight for the charity that the band is supporting. But the matter of the fact is how do you know if your charity wristbands donation is getting where it should? Can they be really trusted?
Before we discuss this major aspect of charity wristbands, it is important to know what charity bands are and how do they work. So, let's have a sneak peek at charity wristbands.
The charity wristbands are among the most popular trends of the new Millennium. Wearing a charity band is to display publicly one's support for the particular noble organization. When you donate to any particular foundation or organization, they give you a charity wristband as a token of appreciation.
Initially made famous by the Livestrong wristbands in yellow color from Lance Armstrong Foundation, the present day wristbands can be availed in any texture or color and size. Generally they are made of rubber or plastic, while there are also some made of wood, metal or string. Their color actually tells you about the cause they are promoting. For instance, the wristband of green color supports the cause of Cancer with the message 'Reach the Day'.
Buying charity wristbands and donating money to the charity is indeed a worthy cause but it should always be carried out with honesty. There are some allegations against buying wristbands for charity. Some people think it is as waste of money on the name of charity. According to these people, by the time the band's cost and other commissions get in place, a very little amount is left on the name of charity in the end.
And this is a fact about these charity bands that people ignore. After you pay the charity as a wristband and wear it on your wrist, awfully little amount actually comes to the people who need charity.
As you want to check the genuineness of charity bands and want to know whether your charity is going where it should be, I want to ask you why don't you go and donate directly. The act cannot charitable when you are buying and using the bands as a fashion accessory or item. You are ready to pay four times more of what they cost because you want to own them, as they look COOL! This part of the charitable act makes it really sad.
Another very important thing for you to know is that due to the rising popularity of these charity bands, there are many such fake items available in the market as a piece of charity. The market is full of them and they are available very easily. The main motive of these fake bands is to attract fashion crazies. Many US schools have forbidden the entry of bands as they are cheating children. The vendors are selling such bands for their own profits, so where is the charity?
There is a word of caution about these charity wristbands: Make it sure that you buy the charity wristbands from the authorized sources. Only then it will go where it should be and the needy will be benefited.
How To Support A Charity With Your Credit Card
How To Support A Charity With Your Credit Card
For people who are organized and careful, using a credit card can be a good way of managing debt and handling spending. And there are other advantages that can make credit card use even more appealing.
Many credit cards can now be used to contribute to people's favourite charities. This means they can spend as usual, secure in the knowledge that they are also contributing to a good cause.
How Charity Credit Cards Work
The way charity credit cards work is simple. Every time people spend on the card, the card issuer gives a proportion of their spending to the chosen charity. The charitable donation can range from 0.25% of the amount spent on purchases to 1% or more, depending on the card chosen and the particular deal. The amount donated may increase if spending goes over a certain threshold.
Many card companies also offer a one-off donation when the card is first issued. Again, this sum can vary considerably depending on the card chosen. There are also rewards for using the card within a set period and for continuing to use the card over months and years.
Some credit cards contribute to specific charities and are branded with the name of that charity. There are also credit cards that allow card holders to nominate the charity their donations will go to.
Other Incentives
Having a charity credit card does not mean giving up on some of the other incentives new credit card holders normally get. Many charity cards offer 0% interest free periods on balance transfers for up to nine months. Some also offer 0% on spending for a certain period. Others offer a fixed low interest rate. People can shop around for the best incentives and still make a charitable contribution. Standard interest rates for charity credit cards have the same range as normal cards, ranging from below 9% to over 17%.
What Charities Can I Support?
There are many charity cards available, supporting a wide range of charitable causes. These include the RSPCA, NSPCC, and cards supporting animals, diabetes, cancer and a wide range of medical conditions. Charities always need more cash to support the work that they do. Using a charity credit card means that people can help their chosen charities while doing what they would have done anyway.
How Else Can I Help My Charity?
Another strategy that credit card holders can use is to choose a credit card that offers a cash back facility. This means that holders get a percentage of their spending as cash at the end of a given period. This is usually once a year, often on the anniversary of taking out the card. Cash back percentages can be quite high, depending on the level of spending. Organized borrowers can spend on their cards and donate the cash back reward to charity as well. This is another good option for lending support to a favourite charity.
Share The Love – Donating Dollhouses
Share The Love – Donating Dollhouses
Every heard the saying "it's better to give than to receive?"
This age-old adage holds a lot of merit, especially in a world dominated by the need for material possessions. But donating doesn't always have to be a monetary gift. In fact, many schools, churches and not-for-profit organizations are receiving donations in all shapes and sizes.
Donating can serve a multitude of purposes, ranging anywhere from building supplies to gifts for sick children. But the bottom line is a donation must come from someone who is willing to share. So if you are interested in finding ways to donate but don't want to simply write a check, what are your possibilities?
First off, you need to figure out what organization you want your donation to go towards. Is it a church or a local school? Do you support national organizations, such as the United Way or St. Jude's Hospital? How much do you want to spend? Once you answer these questions, you'll have a better idea where to begin when finding the perfect donation.
Most organizations enjoy receiving monetary donations and grants. But for those individuals willing to help out in other ways, holding public or silent auctions help raises the necessary funding needed to sustain a charity. Auctions are also a great social gathering for cities, both large and small. In fact, many auctions are held as black-tie affairs.
Some of the most common donations are to children's charities because they are in constant need of donations, especially toys and games, which can make a child smile. If you are looking for an idea to give to a children's charity, consider the traditional dollhouse. Dollhouses are a great example of a donation because the intricate detail and designs can ring up huge sums of money for the charity. What is unique about donating a build-from-scratch item, such as a dollhouse, is you can mold it to resemble certain buildings or homes, depending on the charity.
Dollhouses are not the only ingenious way to help out an organization. Donations can also come in the form of cars, boats or even wheelchairs. By donating big-ticket items, such as these, you will receive a nice tax break for the year while helping an organization fulfill the needs of those less fortunate in this world.
Donating your personal time is another great example of giving back to the community. Perhaps volunteering at a local hospital or senior citizen center is your way of giving. Or even spending a couple of days teaching children in a day-care or special education program free of charge can help out an organization in need.
Donating to charities requires intuitive thinking by all parties involved, and finding your niche in the giving world can be easy when you know where to start or what an organization needs. Donations shouldn't be about giving the largest gift, but should focus on what is truly needed. So when your time comes to give more than you receive, consider making your gift one that will last a lifetime.
Baby Clothes Overstock and Clearance Items – Why Donating Makes Sense
Baby Clothes Overstock and Clearance Items – Why Donating Makes Sense
Retail clothing storeowners inevitably face the same situation year after year – a surplus of last season's styles in some form or another. This is good news for the consumer, as prices on these items are typically slashed well below retail in order to make room for new products. But what to do with the clearance items that remain on the shelves well into the next season? Or what if there simply isn't enough room to hang on to these items any longer once new products arrive? Storeowners who find themselves facing these questions may want to consider donating overstock and/or clearance items to a worthy charitable organization.
In many cases, making a sizeable donation will not only benefit the many people touched by the organization receiving your donation, it may make a positive impact on your bottom line by allowing your business a tax write-off at the end of the year. If you are considering making a sizeable donation, you may first want to contact your tax advisor to discuss how the donation would impact your tax scenario.
It is advisable to spend some time researching potential organizations prior to donating. There are seemingly countless organizations out there that are willing to take donations of clothing and accessory items. When choosing an organization, make sure first and foremost that the organization is not-for-profit, as this ensures the potential tax-benefit of donating. It may be easier to locate large national organizations, but it is worthwhile to research smaller local organizations as well. These local organizations often do not receive the level of exposure necessary to meet theirs demands at the same level as larger organizations. As is the case in so many situations, the internet is generally the best source of information for researching charitable organizations. In addition, consult your local phone book, and ask around. Chances are you already know somebody who has some sort of connection to a local charity – use those connections!
Once you have selected a non-profit organization to receive your donation, it is important to obtain a single point-of-contact within the organization. This person can organize the receipt of your donation, which in many cases can be arranged to take place at your business or warehouse. It is a good idea to provide an itemized list of the donation, including wholesale value, to your point-of-contact at the time of the donation. This list will not only help to document inventory in your records, it will also be a helpful tool for the charity to reference while incorporating the donation items into their existing product supply. In turn, ask that they provide you with a "letter of receipt", acknowledging and referencing the value of the donation. This letter will provide documentation that will be needed to validate the tax write-off. Be sure to discuss the significance of this letter with your point-of-contact prior to making the donation, and follow-up soon as the donation is made to be sure the letter is generated in a timely manner.
Donating To Charity On A Budget
Donating To Charity On A Budget
I always feel guilty that I can't give to charity more than I do. But, honestly, my budget is trimmed down to the bare minimums and our income just meets those obligations with pennies to spare. Still, I feel that I should be giving something. After all, I know that there are other families struggling much harder than ours to simply provide the very basic needs of survival.
You need only to look at your budget to see that our society places a high price on the very basic needs of food, shelter, and clothing. Seems odd to me. In a perfect world these basic needs of survival would be more modestly priced if not free. But, this isn't a perfect world (at least not by my assessment) and that's not the case. That's why I think it's important to give in some way, even when you can't imagine where it will come from.
Here a few little ways you can give and not really miss it.
1. One of our local supermarkets (Shoppers) has a display at each cash register where you can add , , or to your grocery bill as a donation to the food bank. It doesn't hurt so much to give in these small increments often, as opposed to one larger lump sum. I think this is a great idea. You may find this convenient for you if you have a Shoppers or other supermarket in your area with similar donation opportunities.
2. Take advantage of food collections at post offices, schools, and even the supermarket. One or two cans, boxes, or bags of non-perishable foods will probably not ruin your entire menu for the week. You may not even miss it and you'll be making a charitable donation. I have ample opportunities in this area as I have four children in three different schools (elementary, middle, and high school). All three do food drives every year. Our local post office and supermarket also participate in food collections around the holidays.
3. During the holidays, toys for tots is a great way to give a gift as a donation. Some people say they feel cheap if they only give one gift. Well, you can give just one. It's not only acceptable, it's very much appreciated. One from you, and you, and you, and you, ……… well you get the picture. Collectively, it adds up to a happier holiday for many less fortunate children.
4. Take advantage of donation matching to make smaller donations go further. I have certain charities that I receive newsletters and updates from. I recently read of a matching opportunity in one of the newsletters and donated during the promotion. That means that the matching donator gave as well.
5. You can also set up a reoccurring payment in your bill pay program as a donation. Set up a payment to send a donation of every week, bi-weekly, or even monthly. Whatever you feel your budget will permit. If you ever fall short, just reschedule or cancel the payment for that period.
6. Don't forget that donating your time is valuable, and appreciated, also. Volunteer to help a neighbor, visit a nursing home or home for the elderly, cheer up hospital patients, or help out at a local charity organization.
7. Donate all your unwanted items and clothing to a family in need, the Salvation Army, or other charity owned thrift store.
You can see that if you really put your mind to it, you can come up with a variety of ways to donate when donating seems impossible. Donating more often in smaller increments is a lot less noticeable than forking out a large lump sum. And, donating your time is sometimes more appreciated than money, since organizations may really need the manpower to be successful. A warehouse full of food won't do anyone any good if there is no manpower to get it where it is needed. In today's fast paced society, time is a valuable gift to give!
Car Donation – a way to get tax deduction
Car Donation – a way to get tax deduction
A car donation program is a way to get rid of old cars from the garage which eventually earns a tax deduction option. Donating the car is therefore a great way to save some cash for the car that you no longer use, not to mention, you are participating in a worthy cause.
As long as the car has four fully inflated tires, the towing company, appointed by the charity, will take it away. Larger non-governmental organizations and charities also take vehicles, which are not even in working order and sell its spare parts and scrap metal rather than selling the useless car. The smaller organizations however do not have the space and time to accommodate this; therefore they do not take if the car is in a really bad condition.
Taxpayers are permitted to subtract car expenses if the car is truly used for charitable purpose. The procedure is an itemized deduction. If you want to apply for the tax donation option, you need to collect and fill out the 503-c3 donation form.
You can get it from the charity you are donating the car to. You must have a good idea about the cars actual value to estimate correctly before filling out the form. After that, the non-profit organizations or charities will take your car and sell it.
These organizations then use the fund to carry out the good work they usually do. Once they sell the car, they will let you know the price. Then, you can ask for the desirable tax deduction scheme from the authority by mentioning how much you have contributed to the society.
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Choosing the Charity For Donating Your Car
Choosing the Charity For Donating Your Car
The process of donating your car to a charity is easy and straightforward. You simply have to choose the organization and call them up or meet them in person. They will take necessary information from you along with your address and phone number.
The Charity will tell you where to bring the car to make the donation. If you want, they can arrange a pick up as well. In the time of the delivery, the charity will give you a receipt.
Choosing the right charity is important. You should go through a series of investigations before donating your car. The best way to search for a charity is by browsing the internet. You will find hundreds of websites that deal with car donation.
The websites have information about charities in your locality and will assist you with the process. Additionally, these websites have a strong Frequently Asked Questions section that deals with laws regarding tax-deductions, phone numbers and addresses of charities in your state.
You should find out, whether the money from the sale of your car will be used within your locality or outside. You might have a preference for your own society and willing to donate the car to a charity that will use the fund for betterment of your surroundings. You should also find out about the programs and services the charities offer. There are thousands of charities available in the country providing wide range of services. You should select the one, which you feel is providing the best service and actually contributing much to the society.
Car Donation Helping You Help Those in Need
Car Donation Helping You Help Those in Need
Car donation offers many people a solution to a two pronged dilemma, providing both a unique opportunity to give to charity while sparing the time and expense of getting rid of a vehicle that may no longer be of use to a family. For many, the amount of money earned from selling an old car is not worth the investment of time and effort involved in placing and ads and showing the vehicle to prospective buyers, but car donation allows you to side-step these problems, while ensuring that a worthy cause benefits.
Car donation really couldn't be easier, and there are a variety of car donation charities to choose from. The disposal service they offer to you is complete, with most organisations arranging for the collection of the vehicle from your home. Employing various professional towing services that contact you directly to make arrangements that are suitable to you, you can be sure of a reliable service. So if car donation sounds right for you, what do you need to know?
There are several car donation services around the country, but some are limited to collection in certain states. A quick internet search will help you find one that collects from your area. Once you have found an organization that makes pick-ups in your locality, you will need to find out whether your car is suitable for donation. These organizations accept a wide variety of vehicles, even ones that no longer run, but not collect those that will incur costs than the money they will make. Most car donation services will ask you to complete a brief questionnaire to help them ascertain the suitability of your vehicle for donation. Car donation organizations usually ask that you also give them the title to the vehicle, but often arrangements can be made if this has been misplaced.
Car donation is a simple way for you to give to charity and donation is also not without its benefits to you. Car donations made to charities registered with the IRS as non-profit charitable organizations are tax deductible – see IRS Publication 4303 for full details.
Car donation is the ideal way to get rid of that vehicle you no longer need, while bringing great benefits to those in need. Selling that old car might earn you a few dollars to add to your wallet, but car donation will help those same few dollars make a real difference.
New Rules for Donating your Car to Charity
New Rules for Donating your Car to Charity
In prior years, if you wanted to donate your car or other vehicle to a charity, it was easy. All it took was to select the charity, give them a call and they would pick it up and the ownership documentation. This part is still easy and many charities advertise how easy this part is for you.
If you want to claim a tax deduction for that car donation however, the tax rules have changed a little. The reason for the changes were because people were over-estimating the value of vehicles then taking the higher amount off on their income taxes.
First, to even qualify for this tax deduction, you need to be itemizing deductions on your income tax. This effectively eliminates everyone using a 1040 short form, or 1040EZ or those who don't itemize. Further charitable deduction cannot be greater than 50% of your total income. I don't quite understand why this matters to the government but it's in the rules. Further, the amount you can deduct for the contribution depends on what the charity does with vehicle donations. Check the IRS resource publication 4303 at www.irs.gov for more information and details. Now is a good time to state that I am not a tax attorney, accountant or make my living working with the tax code. For more specific information on donating you car to charity or other related questions, I suggest contacting a local tax professional.
A 500 dollar deduction is the threshold for increased paperwork requirements. If however your charitable gift is worth over the 500 dollar limit, you need acknowledgement documentation from the charity. This is typically given to you when they pick up the vehicle. This document must have the following information for you to claim any amount over the 500 dollar basic deduction.
1. Your name and Taxpayer ID [usually your social security number]
2. The vehicle Identification numbers
3. Date of contribution
4. An any one of these pieces of information. a) statement that no goods or services were received for the gift. OR b) a description and good faith estimate of anything received by the donor.
There are a few other details that should be included but this is the basic outline required.
The IRS also limits the value of the deduction to what the charity actually received from selling the vehicle. Generally however, you can use fair market value if certain rules are followed and you obtain a statement made by the charity regarding their plans for the vehicle. You may also be required to obtain written acknowledgement from the charity within 30 days from the date of the vehicles sale or 30 days from the date of donation.
So the value of the deduction is based on what the charity actually sold the vehicle for on the open market. Other rules apply if they decide to keep it but generally most charities of any size take their donated cars and simply sell them on the market. This means that if you donate your car to charity and it has a resale value of 5,000 dollars, you simply cannot legally take a 5,000 dollar deduction unless the charity actually sells the car for that amount, or is subject to the other rules.
If the charity sells your car for 400 dollars, even though it was worth 5,000, your legal deduction is only 400 dollars.
Finally, to make things even more complicated, the value of the vehicle cannot be more than the fair market value. The IRS publication noted above has specific explanations about how to determine value. I personally have simply sold the car and made a cash donation to he charity of my choice. Yes, it takes a little longer but I didn't need to count on anyone else to provide the necessary documentation and there was no question about the value of the donation or deduction.
Tax Deductions For Car Donations
Tax Deductions For Car Donations
Donating a vehicle can be a great way to give to your favorite charity. The government will recognize your generosity with a special tax deduction, but certain requirements apply in realizing these tax breaks.
Policies regarding vehicle donations are not as straightforward as with other types of charitable contributions. The tax relief you can receive depends not only on the claimed value of your donation, but also on the way the charity uses the vehicle. For this reason, you may not know what your full tax deduction will be at the time that you make your donation. As of 2005, there have been changes to the statutes for tax deduction for vehicles donated to charitable trusts. If the stated value of the donated vehicle is more than 0, and if such vehicle is put up for sale by the charitable trust, then the taxpayer is limited to the gross profits from the transaction.
Taxpayers wishing to benefit from such a charitable donation need to keep the following points in mind:
Itemize Your Deductions
To take full advantage of the deductions available for your car donation, you need to itemize your deductions. Those who claim standard education are not able to benefit from this clause.
Estimate the Fair Market Value
Various factors must be considered in determining the value of your car. Refer to a used car guide for precise instructions to find your vehicle's value. Adjustments should be made depending on accessories, mileage and other indicators of its general condition.
Deduct the Fair Market Value
When making your claim, deduct the fair market value of the vehicle. This amount takes into consideration the condition of the donated vehicle. You may not claim the full value of the car.
Verify the Eligibility of the Organization
The charitable trust must qualify with the tax department in order for you to receive a tax benefit. A good place to find a complete list of recognized charities on with Publication 78, available online and in public libraries.
File the Charitable Contribution Deduction
When claiming a tax deduction for your vehicle donation, it is essential to keep good records. Be sure to keep and record all receipts and forms related to the car donation, and its fair market value.
If you've donated a vehicle and want to know if your contribution is tax deductible, contact the IRS at 1-800-829-1040, or for TTY/TDD help, call 1-800-829-4059. If you are concerned that contributions have been sought for deceitful purposes, contact the appropriate state charity official, located in the state Attorney General's office.
If you have a spare vehicle, consider donating it to your favorite registered charity. The organization, and the taxman, will thank you.
Affinity Credit Cards
Affinity Credit Cards
For about twenty years, banks and financial institutions have figured out that appealing to people's hearts is the way to get them to open their wallets. Affinity credit cards have a charity logo as well as the issuer's logo; each time the card is used to make a payment, balance transfer or withdraw cash from an ATM, the bank donates a percentage of the amount of the transaction to the charity.
Will You Need Donations After Using a Charity Credit Card?
The concept of the affinity credit card (otherwise known as charity credit cards) is great: every time you make a purchase you had to make anyway, you can use you credit card and donate to charity. Finally, you can feel good about using your plastic to make your purchases! But is it worth it?
Most of the charity credit cards offer miniscule donations in comparison to the amount of interest the cardholders are required to pay, and most of the time- they charge fairly high annual fees. If using the charity card to donate a year to the homeless leaves you needing donations yourself, it may not be such a good idea to use the charity credit card no matter how warm and fuzzy it makes you feel inside!
The average donation given from affinity cards to charity is about .05 percent. So for every dollar, a half a penny is donated. What does that come out to be? A 0 purchase made with an affinity card translates into 50 cents donation to the charity affiliated with the credit card. If you spend 0 a month on your credit card, you're looking at about a year in donations. If you're paying 21 percent interest each month on your payments, and a hefty annual fee to the card issuer, it's hard to get excited about your contribution to charity!
Additionally, charity credit cards don't usually provide the same perks that traditional credit cards offer. You'd be hard pressed to find a charity card that offers cash back, travel accident insurance, or extended warranty coverage- all extra items that are becoming more common on traditional credit cards.
High Spenders and No Balances
If you are one of the few, however, that spend a lot of money on a regular basis using credit cards, and pay off the balance in full on a monthly basis to avoid most of the interest and fees, an affinity card may be a reasonable option for you to make regular donations to charity.
Another thing to keep in mind when considering affinity cards for donation purposes, is that donations and contributions made through the use of a credit card are not tax-deductible since the donation is actually a contract agreement between the card issuer and the charity- and not from your pocket.
Popular Affinity Credit Cards
Despite the fact that individuals pay higher interest rates and annual fees when they use charity credit cards, and that cardholders of charity cards receive fewer perks than traditional credit cards- these credit cards are very popular. Target's credit card has donated over 19 million to Take Charge of Education, an organization that provides scholarships to students and teachers. This particular charity credit card allows the cardholder to designate the school in which their 1 percent donations are sent to- making the card extremely popular with families with children in grades k-12.
Competition is Fierce
The credit card industry is a highly competitive one, with banks and card issuers literally trying to out-best one another in hopes of retaining and attracting new cardholders. Credit issuers love affinity cards because the cardholders are often very loyal- keeping their credit cards and using them often because they believe in the cause they are donating to.
Should You Give Your Car Away?
Should You Give Your Car Away?
You can give your car to charity and deduct the gross proceeds from the sale if the proceeds are for more than 0.
If the claimed value of the donated motor vehicle, boat or plane exceeds 0 and the item is sold by the charitable organization, the taxpayer's claimed value is limited to the gross proceeds from the sale.
The charitable organization must notify the donor within 30 days of the sale of the amount of the gross proceeds. However, if the charity adds improvements to the vehicle, the charity must notify the donor within 30 days of the contribution. If the charity betters the vehicle then the donor may deduct the vehicle's market value.
Actually, it is much better if the Taxpayer can deduct the vehicle's market value, because there normally is quite a gap between perceived market value and actual proceeds, and this difference can literally be thousands of dollars.
One car donation center states that it has processed over 500,000 car donations since 1992, which adds up to about 30,000 cars a year.
Did you know that you can also donate boats and RV's?
So if aunt Dora dies, and leaves her jalopy in the driveway then maybe this is an attractive way to get rid of the car especially since it does not start anyway.
But wait! It is not that easy.
Where is the Title to the car? Not in the glove compartment? You may have a problem.
You may also have a problem if the title is joint, say Aunt Dora and Uncle Nick.
If Aunt Dora died and UncleNick is still alive there will be all kinds of problems.
How about vehicle emission controls, was the car equipped with them, were they disabled?
When you make a charity car donation:
You get free vehicle pick-up whether your car to donate is running or not. In some cases the company will actually put a new battery in the car to get it running again.
You avoid confusing Department of Motor Vehicles paperwork or Smog hassles.
How it works:
Call a reliable Vehicle Donation company.
They'll take your information over the telephone, they'll handle all the DMV documents, they'll pick up your vehicle , arrange an auction sale and distribute the proceeds to the charity.
If your donated vehicle/vessel sells for under 0 the receipt you receive at the time the vehicle is picked up is all you need for filing your taxes.
The actual net proceeds of a donated car seem to range around the 0 figure
In all cases, a charity car donation is sold to the highest bidder by a well-established charity vehicle auction.
You must have a certificate of title.
Some companies will also guarantee that if your donated car gets a ticket after your donation date, they'll take care of the ticket for you and they zealously will fight it so you don't have to worry about it.
The reason cars are sold by public auction is that people simply will pay more at an auction for your car than they will pay at a dealer.
Also, if the car is running at the time of the auction people will pay more so it is advisable to get it to running condition when reselling it.
Can A Piece Of Junk Be Considered A Car Donation?
Can A Piece Of Junk Be Considered A Car Donation?
Cultivating a sense of charity in a selfish world is indeed a noble cause. But there are times when a charity should say no to such donations and instances when it would be nice to actually think about giving instead of passing on problems.
Trash Is not Treasure
A friend of a friend probably told you how he got a tax break by donating his rusty and useless old car to an IRS qualified charity. Although it may be true that charities may make a little bit of profit by selling scraps, the labor involved may not equal to or even far outweigh the financial fruits. Think about it, if your car has a wrecked engine a rusty chassis and is literally of no use, the charity will have to shoulder the expense of towing, taking the car apart and then transporting it to the junk yard. All those mentioned above takes manual labor, and it's not free.
An Assertion
Now you may argue that there are online companies that accept junk cars as offerings. Actually, if you do even the slightest research, you will find out that these companies are not charities at all. They are business entities whose business is to be a middleman between individuals and charitable institutions. Let me put it this way: If your nasty old car sells for 0 then the charity only get . ! What will a charity do with ?!
Be Fair!
Be honest, if someone gave you a ratty car would you like it? Despite desperation, you will probably think, "What then?! This thing will cost me more money!" You see? that's probably how charities will think too. As a matter of fact statistics will tell you that as much as 5% of all donated cars are a liability to the charities rather than an asset.
On the other hand, if your car is a vintage collectible even if it's in really terrible shape you just might be able to get a charity that will be overjoyed at receiving your contribution. A vintage car donation is rare because like all antiques they very high resale value, and some are priceless. If you are truly committed to the essence of donating ask the charity to restore the car and then auction it off to the highest bidder.
Besides if you think about it, huge charitable organizations like the American Red Cross only accept "decent looking and functioning Cars." They need to make a profit so that they can channel it into humanitarian agendas. If your car is only slightly "shameful" the organization has subsidiaries that refurbish the car. Afterwards, they will either use it to carry out their duties or auction it to raise funds.
Don't Be Crestfallen
If your sentimental old ride can't qualify as a car donation why don't you sell it to a junk yard? arranged for it to towed and then use the money and donate it to the charity. If you want the tax cut that goes will the car donation, don't fret because cash donations are also deductible as long as it is made to an IRS qualified organization. The requirements are pretty much the same as making a car donation. This is simply a friendly reminder that the purpose of giving is to help.
Car Donation: Charity With Clarity
Car Donation: Charity With Clarity
A search about how to donate an old car will yield thousands, if not millions of results. All of them claiming how easy it is donate an automobile, so easy that all you have to do is pick up the phone and they'll be at your door, tow truck in hand; not only that, you get tax breaks too.
The Truth Of The Matter
The truth of the matter is, donating a used car is not as easy as they say it is. Aside from differing state regulations, the IRS has set sanctions on car donations due to rampant fraud. For example: the state of California requires a donor to fill up a liability release form, while Maryland asks for the "Maryland Notice of Security Interest Filing". One thing in common for all states though, is that they all require the Car Title as a prerequisite for contribution.
Finding A Qualified Charity
The most important part of giving away your car for a good cause is to look for the right charity. Finding an institution with the same agenda as yours is akin to interviewing an applicant for a certain position. The pivotal move is to ask questions. Some charities have a number of programs and may be flexible in assigning your donation to a certain goal in which you and the charity officer agree on. Unfortunately, there are some who have a specific set of purpose.
To qualify for write offs, the donation must be made to an IRS qualified charities or the following: religious organizations; state, federal, and government institutions (as long as the car donation is for public use); Non-profit hospitals and schools; Red Cross, Good Will, Meals on Wheels, Care, Salvation Army, and the Girls' and Boy Scouts of America; and those listed in the IRS' publication 78. A donation is not tax deductible when it is made to an individual.
Preparing For The IRS
A car title is a strict requirement for donating a car. Prepare the 1040 form and fill up schedule A. The amount of deduction is limited to 50% of the already adjusted gross amount of your income. The write off is based on the cost at which the charity sold your car (if more 0), or the fair market value if the car is less than 0.
Do not forget to take note of the location at which you donated your car, the charity and its address, the condition of your car, and the contemporaneous written acknowledgement of your contribution. All these, are needed for you to avail of the tax deduction. You have to submit all of these requirements at an IRS Specified deadline or else you cannot get a write off.
It is important to keep a second copy for your file, just in case. The great thing about all this is that the IRS actually has a number of hotlines ready to answer any questions you may have. Aside from that, an online list of charitable institutions, rules and regulations, and guidelines on how to determine the amount of your deductible are also available.
Doing Good And Profiting
No good deed goes unpaid. In this case not only do you help others, you also help yourself. Don't be deterred by all the requirements for car donation, rules and regulations are there to benefit you. After all would you want unscrupulous people using donation to meet dishonest ends?
Car Donation – How efficient is your charity?
Car Donation – How efficient is your charity?
Before selecting the charity for donating your car, you must find out the efficiency rating of the charitable organization. The efficiency rating will tell you their ability and capacity.
If the rating is high, it means, the larger portion of your donation will in fact go to the people, who need it. On the other hand, if the rating is low, it indicates that the charity uses more money on administration purposes rather than helping out the society.
For example, if a charity has an efficiency rating of 90%, it means, 90 cents of every dollar you donate will go directly to the people in need. The remainder will be used to cover all administrative expenses. In general, a ratio of 85% or higher indicates that the charity is doing a good job. Less than 85% means, it is poorly managed or the charity is not so legitimate.
Most charitable and non-governmental organizations agree to take vehicle donations so that they can fund the programs and services they offer to the society. On the other hand, the primary motivation from your side is to help the society. If your money is not spent for the betterment of the society, why donate in the first place?
There are thousands of car donation programs available in the country, some support local non-profit radio, TV and newspapers, some support humanitarian causes. Additionally, many Charities and shelters use the donated cars for transportation to work, doctor appointments, school, etc&
You should find out related information about the selected charity before taking the final decision. Remember, the higher its efficiency rating, the higher you are contributing to the society.
Wheels For Meals: How A Car Donation Can Help Feed The Hungry
Wheels For Meals: How A Car Donation Can Help Feed The Hungry
People care. Well, at least those who value helping others. Unfortunately with the crumbling economy most Americans are probably more worried of where they will be living, and if they can still afford food for themselves before thinking of others. The current financial crisis has elevated the number of impoverished people across the states.
A Basic Need
Food is the most vital need for survival. If you have an old beat up truck parked around the corner why don't you donate it? A lot of people may benefit from your car donation, not only that, who knows? maybe one of these days it will be you in that free meals line.
The Right Charity
In actuality it depends on the donor where his or her contribution goes. There are a lot of charities out there. If you go online and type car donation in Google you will be inundated with countless charities. Most of them will tell you that donating a vehicle is easy as pie. But hold up for a moment, before you dive into giving old "bertha" away make sure you have all the facts of making a car donation.
Your bequest will only be put into a meals program if the institution you donated it to has this kind of agenda. Do not hesititate to ask the person in charge the kinds of goals the charity have. If you and your chosen charity cannot agree on a specific set of goals, then move on and look for others.
How A Car Donation Becomes A Plate Of Food
The inner workings of a charitable institution is not entirely that complicated. A bequeathed vehicle will either be used by a person carrying out the meals on wheels program, or it could also be auctioned off to raise funds for the food itself. In short one of these days you may see your old car parked a couple of houses down, as a charity worker delivers the meals to someone you may know.
Although some people donate their time and services cooking those meals only a portion of the ingredients are donated. So they need cash to go grocery shopping. Some charity organizations have their own used car lots, most are auctioned publicly, and others use third party- for -profit companies. That is why it is imperative that you inquire how much actually goes to the charity, because then you can actually ask them to use the car (if it's in good condition) instead of selling it.
The Bonus
It is widely known that a car donation gets donors tax breaks. What most people don't know is that for the benefaction to qualify for a tax deduction the car donation has to be donated to an IRS qualified charitable institution. Commonly qualified organizations are those that are classified as section 501 institutions such as churches, and education oriented charities. IRS has a complete list of the years' Cumulative Charitable Organization.
The amount of tax subtraction depends on the current fair price of your car, if it is less than 0. If your car is in relatively good condition, and could amount to more than 0 then, you may be able to get a deduction that is equal to the amount in which in the charity sold the vehicle. Even cars that don't run can be accepted as long as it looks quite presentable, may be repaired and then sold.
Car Donation Fever
Car Donation Fever
A car always attracts attention. In the society of today an automobile is both a need and a luxury. A need because it is now a must, in order to survive, for example: you now need a car go to work, buy groceries, and etc. Car donations are essential parts of most charity fund raising techniques as well as charity work because there is an endless need for cars so they are an easy profit.
An Emphasis
To emphasize how a car is of such importance, hear this: even junk and non running cars are accepted as donations. The cars may be repaired or restored, sold into auction or used by the institution it was donated into. You know how some peoples' trash are others' treasure? Well this is the case where it is literal.
An Encouragement
Think about it, holding on to things that is of no use is utter depravity. Some people horde, imagine a car under those pile of junk! Wouldn't it be good, if you could get rid of that one thing that may give you more space, feel good about yourself, and get a tax break?
In this time of economic downturn helping people while helping yourself is a win win situation. The information of going about it is the most important factor.
An Initiation
Most Americans have access to the internet, so go online and type in car donation. Read up, and evaluate your newly acquired knowledge. Sounds easy right? However, before committing yourself to a charity that looks and sounds great, look around and do your research. There are companies that look like a charity but are actually a mediator, and there are even those that pose as charities when in fact they are not. The easiest way of looking for the right charity is to visit a local charitable institution. Conduct an interview with their officer, do not hesitate to ask questions, after all you want your donation to not only help you but others as well.
Not only is the charity's intent important, but also its service towards you "the donor". To be able to claim tax write offs, you have to work hand in hand with the charity because the IRS have now set stringent rules governing car donations.
Goals For You and For All
After going round the local charities, take time to sit and think about your agenda. Where do you want your car donation to be used? What are the organizations goals? Does it coincide with yours? These questions are important if it is difficult for you to let go of the vehicle you are donating.
The IRS
The clincher always seems to be the tax deduction, so here's a gist of the IRS' new conditions. To avail of the tax break the charity must issue an acknowledgement certificate of donation containing the charity's name and address, the make and model of your car, its present condition, and a fair appraisal amount of the car's worth. Additionally, they must also state that no goods or services were made in repayment for the car so it can qualify as a donation. The IRS allows a deduction of not more than 50% of your gross deductible amount. The write off will be based on the car's market value, or the amount in which the charity got for the car.
Which Charity Credit Cards Are Worthy Of Your Support?
Which Charity Credit Cards Are Worthy Of Your Support?
Donating to good causes is a great way to help people who are less fortunate. People have always been able to help good causes by giving up their time or handing over cash. Now the process is even easier.
Many charities now have branded credit cards that enable consumers to donate to the charity every time they spend. These charity credit cards are backed by major UK banks. The Royal Bank of Scotland, Halifax and the Cooperative Bank all support several charity credit cards.
Learning About Charity Credit Cards
When consumers first sign up for a charity credit card, the issuing bank makes a donation to the relevant charity. This sum ranges from £5 to more than £40. The actual sum donated will depend on the terms of the particular credit card deal. If consumers keep and use the card, then card issuers usually make a second donation at the end of six months or a year.
Charity credit cards also give ongoing support to charities by paying a percentage of any spending on the card to the nominated charity. For example, most cards contribute 0.25% of spending to the charity. This means that 25 pence is donated to charity for every pound spent on the card. Some charity credit cards offer a donation of as much as 1%, so the amount given to charity increases to match. This is worth thinking about when deciding which charity credit card to go for.
What Causes Can I Support With Charity Credit Cards?
There are cards for almost every good cause. These include:
– Cancer charities such as Cancer Research UK and Breakthrough Breast Cancer Trust
– Children's charities such as the NSPCC, Great Ormond Street Hospital and Barnardos
– Animal charities such as the RSPCA and PDSA
– Aid agencies such as Christian Aid and Oxfam
– And many more.
To find out if the charity you want to support has a credit card, telephone them or visit their websites. There are also several credit card comparison sites to help consumers decided among the different credit card offers.
What Incentives Are There For Using Charity Credit Cards?
Charity credit cards offer the same incentives to new cardholders as other cards. This means that, depending on the offer, cardholders can benefit from:
– Low annual interest rates
– 0% balance transfer rates for a fixed period
– 0% interest on purchases for a fixed period
– other rewards and incentives.
Some credit card issuers may charge a one-off balance transfer fee. This should be considered when deciding on the right card.
As with all credit cards it is essential to make payments regularly and on time to avoid attracting any penalty fees.
Once people have selected the right charity card, making a donation is as simple as doing what they would do anyway. All they have to do is spend money in the usual places and their favourite charities will get the benefit.
Car Donation For The Wise
Car Donation For The Wise
Advertisers make car donation sound so uncomplicated: Donate a used car instead of going through the hassle of selling it, and then instead of cash you get tax write offs. It's a no lose situation right? After all you still get some sort of return and in the process you even end up helping someone else.
Unfortunately like all ideas with great intentions things always seem to go awry, and with car donations this is usually the case. So before giving away your vehicle you'd better read this.
Help A Deserving Charity
There are numerous charities out there, thousands and in fact even millions. You probably already favor a certain charity, despite this, visit or call and ask if they can accept a vehicle donation. Not all charitable institutions accept automobile bequests. Ergo, make calls and visit their offices personally to ensure that they are legit. The IRS website has a complete list of all qualified charitable institutions.
Instead of asking the charity to pick up your gift, drive it down yourself. This'll help the charity save on the cost of having someone tow or pick up the car. The goal here is help to the charity make money, not spend it.
To make a clean break, ensure that the Car Title is appropriately transferred to the organization's name. If you don't, you might get mail regarding unpaid parking tickets, and then you'll be in trouble.
Keep Clear!
If you can make time, try to refrain from using middlemen or what's called a car donation service. Although they mean well, you cannot deny the fact that they are businesses, and an enterprise's main goal is to create income. It could be that they only give 0 to charities for every 00 they make selling your car. This defeats the end of being able to give the charitable institution maximum revenue. If you calculate it, only 10 to 20% actually goes to the actual charity. Additionally, if say only 0 reaches the charity then you will not be eligible for the tax subtractions.
Be Meticulous
Try and keep track of all the paper works. You must keep extra copies for yourself for later purposes and for your current IRS needs. Make sure you fill up all of the IRS required form. The proof of sale will not be needed if the charity keeps your car for their use. By the way, this is where working with a good charity can help you because they are actually going to be the one to provide you with the necessary forms and documentations. If you're giving away an expensive or relatively new vehicle then you need to get independent appraisal.
Last But Not Least
Before going ahead with making a car donation, make sure you remember these last few reminders. Do not over estimate the value of your car; the IRS has a price basis of how much your car's current value is more than 0. If it's less than that amount, then you can claim as much as the charity got for selling the car. Don't try to cheat to get a bigger tax write off; the IRS has stringent compliance rules. The charity has to provide you with an Acknowledgement Certificate that states the charity's name, address, the car's present condition, and if the charity gave anything in payment of the car. Remember if you get something in return then the donation in now deemed sale.
Donate A Car To Your Charity
Donate A Car To Your Charity
Making charitable contributions is a wonderful way to help out your fellow man, but it is also a good way to get some tax breaks. One really good method is to donate a car to charity. However, there are some things you will need to do in order to donate a car to charity and claim the donation on your tax returns.
First of all, make sure the organization is qualified. You can do this by logging onto the IRS website to check for qualified charitable organizations. If the organization you donate a vehicle to is not qualified then you will not be able to claim the deduction. So you will want to check this out before you make your donation if making the deduction is important to you.
Another question you will need answered before you donate your vehicle to charity is what will become of the vehicle? Will it be sold to make money for the charity or will the charity use it for transportation? Also, the car might be given to someone poor who needs transportation. Regardless of what the car will be used for, you have a right to ask the question and decide if you believe it is a charitable cause. If not, then you can look for another charitable institution that will use the vehicle in a means you approve of.
Make sure you determine the fair market value of the vehicle in order to claim the donation on your taxes. You will not be able to simply claim the Blue Book value for your vehicle but will have to take into account the vehicle's condition, and accessories you have added, and the like. There are several IRS and other guides that will help you come up with the fair market value of the vehicle.
Make sure you follow any laws required by your state regarding donating vehicles to charity. More often than not laws require you to transfer the title to the charity, if at all possible, and do not leave license plates on the vehicle. This will eliminate liability issues as well.
If after reading all the information on the IRS website and following these steps you still have questions regarding your charitable vehicle donation then you should contact the IRS directly in order to have your questions answered. It is better to have your questions answered before you make a donation than after, so be proactive.
Donating a car to charity is a really good thing to do and it will help you out on your tax returns as well. Just be careful because there are charities that will tell you what you want to hear, which can cause problems for you when you try to claim your donation. Just make sure you have all questions answered by the IRS.
A Different Perspective On Car Donation
A Different Perspective On Car Donation
Car Donation is very popular because it is giving while getting something in return. A charity receives the car, sells it, and uses the profit to fund a cause, and getting something in return due to the tax breaks a donor gets.
What The Charity Does
A lot of people wonder how charities use the donated vehicles. Actually most charities, like the American Red Cross has their own used car lots. Others auction the automobiles to the highest bidder and then some simply use the cars in carrying out their mission.
To Use Or Not To Use
No, charitable institutions do not simply toss coins to decide whether an appropriated car should be utilized for implementing programs or sold at a certain price or to the highest bidder. What they do is classify the vehicles into certain programs that it may be of great advantage to.
Let's take for example Charity O: Charity O has 5 programs, the first: meals on wheels, second: aiding people gain employment, and third: an educational fund. The first thing a charity does is to evaluate the running and physical condition of a Car. If it still works well then they can maybe use at a delivery car, or lease it to a person needing a vehicle to work or school.
Charity Preparation
Most charities, especially those listed on the IRS publication 78 depends solely on car donations and other contributions in order to perform good will, hence they make it easy for people to donate their vehicles. The institutions always have IRS forms on file together with their donation forms.
Furthermore, it is also the philanthropic organization's duty to provide the documents needed for the donor to claim tax deduction. These documents depend on how the car donation was put into use. If the car was assigned to an agenda, the charity will give you a tax voucher that clearly states the value of the car. The tax write off will be based on the car's fair value that may be found on the Kelly blue book price listing of automobiles fair market values.
The charity also has to provide a paper acknowledging your appropriation. The instrument has to contain the details of the benefaction like, an honest estimate of the cost of your car, an assertion that the charity did not repay you anything in any manner or that if they did do something the deed consisted of intangible things like religious counsel or etc. All these have to reach you within 30 days of donation or else you cannot claim the tax subtraction.
Why Wait Donate!
There are those who hesitate when it comes to donating a car. After all, a car donation entails certain responsibilities like proper documentation and what not. But the important thing here is that you are helping someone while making it worthwhile for you because you reap not only financial benefits but spiritual and emotional as well.
A word to the wise, now that you have a glimpse of what a charity goes through to raise funds and even accept car donations, try and make it worth their while. If you can, deliver your car donation. This act helps a charity save a small yet significant amount of money by not having to pay a tow truck or driver to pick up your car. Not only that, you may also establish a long lasting relationship with the charity workers and you might even become one someday.
Car Donations That Are Tax Deductable
Car Donations That Are Tax Deductable
With the start of the New Year and tax time right around the corner you are probably looking for items that you can deduct to reduce your taxable income. Since the laws on what can be claimed vary from state to state and country to country there is a lot of confusion about what a deduction can be. In the US the Internal Revenue Service (IRS) has many documents that can be use to determine what can and cannot be a deduction.
One aspect of tax deductions that is increasing in popularity has been car and vehicle donations. A simple process that both the donor and the charity can benefit from. A perspective donor gives a vehicle to a registered charity. That charity does one of several things with it.
• They can sell off the vehicles in running order and use the proceeds to fund their organizations.
• If the vehicle is not on running order it may be repaired or sold as scrap.
Either way the charity benefits from the donation and so do the worth while causes they support.
It is a simple process, however, as a donor you have to determine a couple things before you can legally write off any contributions made by donating your car.
First you have to be eligible to receive the tax deduction. This can be as simple as itemizing the deductions on Schedule A of Form 1040. However there are other limitations that you must be aware of before simply deducting the donation.
• Does the vehicle you are intending to donate qualify as a tax exempt vehicle? This is obviously important and there is a good chance that it will. Most vehicles that are legal for public roads are able to be used as a tax deductible donation. This also includes boats and planes plus some all terrain vehicles.
• The percentage you can claim. Since you are only able to claim up to 50% of your current gross yearly income you are limited if you are donating a vehicle such as a plane that can be worth thousands or tens of thousands of dollars.
• For contributions between 0 and 0 there is less information required to deduct the donation. The acknowledgement form from the charity will have to contain the following.
o Name of the charity
o Vehicle Description
o Plus one of the following
– A statement saying you never received any goods or services for your donation. Or…
– A statement provided from the charity with a description and fair market value of goods or services they may have provided to you. Or…
– If goods or services were provided in the form of non-tangible services (ex: :religious advice) this must be stated.
• For donation amounts that exceed 0 you will need to gather additional information before trying to deduct the donation amount. When you receive the written acknowledgement from the charity it must contain additional information.
o Your name and Tax Identification Number
o The vehicle identification number must be present.
o The date of the vehicle donation must be included
o One of the following must also be included with the date of the donation
– A statement saying you never received any goods or services for your donation. Or…
– A statement provided from the charity with a description and fair market value of goods or services they may have provided to you. Or…
– If goods or services were provided in the form of non-tangible this must be stated.
-The charity itself must have tax exempt status with the Federal Government. Most education and religious organizations are tax exempt. The IRS maintains a particle list of those organizations that have tax exempt status. Go to the IRS website and search for Publication 78, Cumulative List of Organizations. This will be your best place to start for determining which charities you can donate to and receive a tax write off.
The charity itself must have tax exempt status with the Federal Government. Most education and religious organizations are tax exempt. The IRS maintains a particle list of those organizations that have tax exempt status. Go to the IRS website and search for Publication 78, Cumulative List of Organizations. This will be your best place to start for determining which charities you can donate to and receive a tax write off.
By following the guidelines provided by the IRS and the charity you choose to donate to you can help out those organizations in need plus you are able to help yourself out with a tax deductible donation. Just remember to follow the rules and both parties involved will win.
Looking For A Good Tax Break? Donate Your Car To Charity
Looking For A Good Tax Break? Donate Your Car To Charity
Alright, that old rattletrap, rusting buggy still masquerading as a car has been taking up space in your driveway for much too long. It's become part of the neighborhood landscape. You've been able to overlook it, but your neighbors are growing a little upset. You've bitten the bullet and realize the time has come to get rid of it, but how?
Why not contact a charity to see if they are interested taking the car as a donation? Not only is giving your car away to a charity good for deposit in your karma bank, when tax time rolls around, that donation can help keep some of your cold hard cash in the bank as well by allowing you to take a potentially sizable deduction. If you ask around, you'll find numerous charities that have established programs for taking vehicles as donations.
As you might expect with the IRS, there are some tricky rules. Giving a car away to charity for a tax break is not as easy as it used to be. The old tax laws allowed you to write off the fair market value of any car given to charity. Fair market value was determined by auto industry standard evaluation services, like the Kelly Blue Book, so if the Blue Book value of your car was ,000, you got to write that whole amount off when tax time arrived. That system was fraught with abuse, however, with people claiming inflated donation values of 4 million in one year alone. Therefore, the law changed in 2005, and the IRS now places some limitations on the way donation deductions are claimed.
The basic rule is that IRS places a cap on vehicle donation deductions of 0. If your donation is worth more than that, then you will be required to meet a few criteria before you can claim your deduction. First, you need to know how the charity is using your car. If they take if from you and sell it, then the price they sell it for is the amount you can claim as a deduction, even if it is less than the value of the car. If the charity sells your car for more than it is worth, you can only claim a deduction up to the fair market value of the vehicle.
There are a few exceptions. If the charity decides to give the car away to a needy person, or if they sell the car to a needy person for far below the fair market value, then in most cases you can claim the actual worth of your car as your deduction. Also, under the "Intervening Use Exception," if the charity uses your car for awhile before selling it, and then sells it for below the fair market value, you can claim the value of your car at the time of the donation as your deduction, since their use of the car lowered the value.
However, if the charity makes improvements to the car, increasing its value, and later sells it for more than it was worth when you donated it, you can still only claim the fair market value of the vehicle at the time of donation. Whichever circumstance applies to you, the charity should notify you in writing within 30 days of receipt of the car of their intentions for the car and the donation value. If they sell the car, they must notify you within 30 days in writing of the sale price.
Of course, deductions are not subtracted directly from your tax bill, but rather allow you to reduce your tax bill by a percentage. Exactly how much a deduction will take off your tax bill depends on your income, your tax bracket and how you file.
How to choose a charity for your car donation
How to choose a charity for your car donation
You will find that process of donating a car to a charity happens to be a very easy and clear-cut process. You'll need to choose the charity or organization and then they will help you feel out all the paper work. You'll find that they will took information like your name, number, and address..
When it comes to the charity, you'll need to consider that there are times where the donation is arranged over the phone or in person. You'll need to either drop off the car, or the charity will come and get the car for you. You'll be able to get a receipt once the car is taken out of your possession.
As for choosing the right charity, you'll find that it is very important that you meet all your needs before you end up giving the car up for donation. You'll need to research the organization, but don't forget, the internet can help you with your donation. You'll need to look up tons of information and access many sites when you are researching the donation of a car.
You'll also find that the websites of the organization can help you with your donation process as well. You'll need to look up the FAQ section of the organization, because that will help you understand your state laws and also it will help you to understand a perspective tax deduction.
It is also important that you find out first if the car will be used by the organization or if they will sell it. This will help you to understand how much you will be able to get back for a tax deduction.
Car Donation Precautions
Car Donation Precautions
A trend is emerging; donating cars have become very fashionable. Does it mean humanitarian issues have become the forefront of America's priorities? Hopefully, but with the financial crisis, conceivably the tax deductions pose a greater advantage that the charitable one. If tax write offs are the biggest issue here, let us help our fellow citizens and immigrants not only get the tax reprieve you also help other people in the process.
Car Donation
Perhaps it must be reiterated that the definition of a car donation is a contribution towards an altruistic cause without repayment of any tangible gain. The gift is usually in the form of a car that has lost its use to the owners.
Identity Crisis
The most commonly committed error is the mistaken identity. What? Well, people usually mistake car donation services for the charity themselves, and herein lies the ambiguity of the matter. When you go to Google and type in "car donation" you end up with pages and pages of websites all claiming to "work for the common good".
Actually, some if not most of these "car donation services" are business entities in themselves. This is because they get your car right at your doorstep, process everything, and then merely give say 10-20% to a charitable institution. They make a hefty income out of what should have been for the needy. So, be wary of who you call to donate you car, don't be fooled by donation is a breeze promises, do your homework!
Charity Disparity
Even the honest of most honest people should admit that the tax excision does sound juicy, before you assume you have to know the rules. You see, charities have to be on the IRS' publication 78 list for your offering to be credit towards a possible tax write off. In practice a charity should include all the required IRS forms together with their own application for donation packet. In addition to all the forms, the charitable organization is obligated to issue a donation acknowledgement form and a tax deduction voucher containing all essential details.
Accordance and Compliance
Before donation you have to prepare your Car Title, make sure that it's free of any encumbrances. Check if the organization you are contributing to is a qualified institution before going ahead with the transaction. Did you know, you can even ask the charity to use the profits or your car donation in a program that is closer to your heart?
To be able to claim the tax deductions, ask the charity for a donation receipt form itemizing information like: the place of donation, the charity name and its address, an assessment of the car's worth, and a promise that no repayment was made towards you.
To file a report of your car donation fill up lines 16 to 19, schedule A of the 1040 form. If the value of your car donation is more than 0 you also have to complete form 8283. When the benefaction exceeds 00 you have to get an independent and IRS credited appraiser and then comply with section B of 8283.
Sounds daunting? don't be deterred your chosen charity will help you in fulfilling all the requirements needed. Not only that you may also call IRS hotlines should you have any questions regarding this matter.
Make A Car Donation To your Local Church
Make A Car Donation To your Local Church
As long as your local church organization is an IRS recognized non-profit organization, there is no problem making a car donation and getting a tax benefit at the same time. Chances are you have probably heard that your local church needs to raise fund for a free meals drive, or that your local priest, pastor, or deacon needs a car to preach and invite more people to attend church. If so, why not make a car donation?
Carrying More Weight
It is more tangible to make a donation to an institution that you are a part of or at least close to than favoring an unknown. For one thing, you will definitely know if your contribution made a difference, or whether it was put to good use. Since the charity is more special to you, an honest evaluation of the car you are offering is a necessity. The attribute of your philanthropic offering is equal only the quality of the vehicle in question. A car that's worth nothing will not be of use to your favorite charity.
The benefit of knowing the charity closely is that paper work will be a breeze. Car donation can sometimes be taxing if you are dealing with a difficult institution. Your tax write off is dependent on the amount of speed at which a charity can process paper works because the IRS only gives 30 days from the date of donation for the tax write off to be considered. Being a member of the organization could give you a higher fair market value, because you can arrange the contribution through the church and so you will not have to pay gift taxes. More current market price means more tax deduction and more donation amount.
Furthermore the charity will have to provide all the IRS required forms like the 1040, and 5383 that is needed to process the tax deduction. If you know the charity then they will even help you in filling out all these forms and any questions you might have may easily be answered.
Donate For The Purpose Of Doing So
Yes, tax deduction is one of the most lucrative parts of car donations, but it is nothing compared to the reward of knowing that you made a difference. It is will be embarrassing if you donate a junk car to a church charity in which you are known. This makes the donor more conscious of the effort of letting go of something important. People have difficulty letting go of cars, recognizing the charity where you car will go will ease your doubts.
It's Who You Trust
There are a lot of fraudsters out there. There are also car donation services that get more than the charity that really needs the money. When you give your vehicle to your community church the car value is maximized. When you go through middlemen to make a car donation, much of the amount taken from the sale of the car goes into the expense of the service company and its profit. Only a pittance goes to the actual institution.
It is very difficult to find a charity whose goals are the same as yours, much less one you could trust. By donating to the local church you are assured that the church charity will employ your car donation into something that will be of satisfaction to you as a donor.
Charity car donation – steps to take
Charity car donation – steps to take
You can donate your car to a wide range of charity organizations, but picking the most representative ones requires getting some previous information. So before actually donating your car, make sure you get some relevant info about the charity organization, its purposes, projects and usage of your car. You might find out that there are various organizations that have different goals and you will probably find, among them, a great cause and possibility to donate your car to something meaningful. Even more, make sure that your car is going to go to an eligible organization that is serious in its acts and has valid previous work. In order to be sure, speaking directly with the charity agents is the safest way to go. In fact, the IRS requests that the donors are aware of the type of the fundraiser society they choose. When talking to the charity representatives, the most important information regards the exact usage of your car, if it will be sold, fixed up, offered to the less fortunate people and so on. Besides
Charitable donations and car evaluations
Another important thing before donating your car is evaluating it in a correct way. There are various guides on the market that offer elaborate instructions, in order to establish the valid value of your car, depending on its general condition, accessories, age and mileage. After making sure that you selected the correct charitable organization and the optimum evaluation, you should be aware of the fact that you are required to complete and attach an IRS form to your tax return, in case you are claiming a car donation that values 500 $ or above. Donating a used car to charity is a great solution if you are planning to purchase a new car or if you are simply willing to contribute to a charitable activity. Knowing and following some steps before the actual car donation avoids further worries, as it makes the process a safe and fulfilling one.
Are there any hidden facts about used car donation that I should be aware of?
First of all, not every used car donation programs are functioning legally. Before you make your used car donation, you should check with the IRS if the charity is a non-profit organization listed under paragraph 501 (c) (3) in the IRS Publication 78.
Secondly, check out if the used car donation program is run in-house by the charity itself or by a third party. If a third party is operating the used car donation program, you should ask what percent of the profit made by selling the donated cars actually goes to the charity. Often, third-party operated used car donation programs produce small amounts of money for the charity. Smaller charities do not afford the costs of transportation and storage for the donated cars, not to mention the costs involved in charity auctions. This is the main reason why charities accept to have their used car donation programs run buy third-party brokers.
Where Did Your Car Donation Go?
Where Did Your Car Donation Go?
So you have made the decision to donate your old car to charity. Once donated, your car can have several things happen to it. The charity that you donate it to will decide how to process the donation based on the general condition of the car and operating order. Each charity will have different procedures they use to get the most value from your donated vehicle. You can check with the charity you are considering to determine what they plan to do with your donation.
Despite the condition of your donation you will have a bit of planning to do before donating your car. First, you are responsible for determining the fair market value of your donation. In 2005, in the USA, the law changed so now it is up to the vehicle owner to determine what it is worth. The owner must also have written documentation for the appraisal to justify the value when asking for a tax receipt from the charity.
If you are interested in claiming the car donation on your taxes you will need to know if the donation is valued at more than 0 or less. You will need to obtain additional information from the charity if the value of the car is more than 0. You must determine if the vehicle qualifies as a tax deductible donation. Most vehicles legal for public roads qualify to be tax exempt when donated. Also determine if the charity you are donating to has tax exempt status. Most educational and religious organizations will be tax exempt. Calling the charity and asking is often the best way to determine this.
Now that you have all the pre pick up paper work complete you are able to arrange for your donation to be picked up. Depending where you live this can be handled in a few ways. If the charity is near your home and your car operates you can drive it to the local charity and save them the cost of having it removed by a towing company.
Again, if the car you donated runs the charity may send a driver to the vehicle location and drive it away. This also saves them the cost of having it towed.
Of course if your car doesn't operate the charity will send a tow truck to the location and remove the vehicle. Most of the time the charity will send a registered tow truck company over to the location to haul the car away. In other instances the charity itself will have their own towing service. In either case you may need to provide the driver with the car title before they haul it away. This will also limit you from any liability since you are no longer the registered owner. Discuss this with the charity when you arrange for the pick up.
After your car is hauled away a number of things can happen depending on the condition of the vehicle. If the vehicle is in good shape the charity will have a mechanic inspect the donation and give it a pass if it meets safety standards. Any vehicle that passes inspection will either be sold at auction with the proceeds being used to support their organization. It may also be donated to a family in need that the charity supports. If it fails the inspection the mechanic will provide details of what need fixing. The charity will decide if is worth fixing the vehicle.
Those vehicles that are not road worthy or cost too much to repair will be striped for any valuable parts and the remainder will be send to the scrape yard. The parts of the vehicle will be separated and recycled. The steel from the frame and body panels will be sold off as scrap iron. The charity receives the proceeds from the recycling facility less the fee for processing the donation.
If you are donating a car that has sentimental value and you don't want it to end up as scrap you can talk with the charity in advance. The vehicle will either need to be in good working order before the charity gets the donation or be cost effective for them to fix it.
Donating a car is simple and goes a long way to helping charities in need. Knowing the steps involved to get rid of your old junker can help make the process go smoothly.
The Right Charity Equals To A Perfect Car Donation
The Right Charity Equals To A Perfect Car Donation
We have all heard how donating a car can give us such great benefits. Most donors are attracted to bequest their cars to charity due to tax breaks. The sad thing is that in their rush to get tax deductions, most people fail to actually think about the essence of the donation and finding the right charity. A lot of articles out there are focused on the IRS side of philanthropy, so this article is dedicated to helping you find the best charity.
Experience and Professionalism
First of all let us tackle the ever attractive topic of tax write offs. Do you know that the charity institution of your choice can actually prevent you from claiming those tax deductions? So before you rush to the nearest charity, read this.
There is a difference between a car donation service and the charity organization itself. Recognize the difference for a better judgment. A car donation service is a mediator. It may be for profit or a nonprofit service. If you want more proceeds to go to the charity of your choice use a non-profit car donation service or better yet go directly to the charity.
An excellent car donation service or charity will make donating easy as pie. They will take care of all the documents necessary to push the transaction through, as well as provide you with the IRS requirements in a timely manner.
Service and Compliance
Law abiding charities mean "legal" charities. In the world of high stakes fraud, there are a lot of highly skilled con artists who will hood wink you and make you think you are giving your car to charity. Complying charities and car donation services provide all the required IRS forms together with their forms when you make the contribution.
Some charities may even come knocking on your door asking for your unused car. If this is the case, expect them to provide a driver or tow truck (in case the car doesn't run) when you make the donation. In short good charities and car donation services make your life easy.
Avoiding The Falls
If time is of the essence, a car donation service is the easiest way to donate your car, but be proactive. Ask how much your car was sold for, choose the charity it goes to and ask for all the receipts and documents proving the validity of the sale and donation.
A legal charity is important. Why? because there are those who use the car for crime, and in fact some used car dealers even pose as car donation services to get cars for free! Some charities may use the car for other purposes. It is your responsibility as the donor to ensure that a large amount of the proceeds from your car actually goes to charitable work.
Make sure to transfer your title to the institution or you may find your mail box full of parking tickets.
Environment, Pocket and Heart
If your car is the oldest of all cars, look for a charity that disassembles the cars donated and sells them as metal scrap. Not only are old cars gas guzzlers, but they are also harmful to the environment. In making a car donation of you oldies not only did you help people in need, save the environment but you also gave yourself a break from too much gas spending.