How to donate a car is a question I hear a lot.

The questioner is usually interested in finding a way to get rid of an old car and reduce their taxes but there are many others who also want  to do something valuable for their community. Donating a car to charity benefits both the person giving and the charitable organization.

However before you donate a car to charity you need to do your research. For example, there are a number of organizations, such as the Purple Heart,  that will assist you in donating your car. If you go this route, you want to determine how much of the money actually goes to the charity.

The articles on this blog will go a long way to educating you and teaching you how to donate a car with confidance. If you have a car that you are considering donating then please read more, educate yourself and do something good for your community. You wallet may also thank you.

Related Blogs

• Latest Car News » Blog Archiv » Luxury Cars and the Recession …
• Car-service price check: Cobble Hill/Carroll Gardens | Brokelyn
• Shakira Receives Medal From United Nations For Charity Children …
• Charity Game, er, Game Thread | U.S.S. Mariner
• BenchMob Beat: Turning Down Charity | The Lakers Nation
• Christina Aguilera designs eco-friendly car for charity
• Breaking: NBC renews 'Community,' 'The Office,' and '30 Rock …
• Innocomm Announces Lineup of New Low-Cost Android Devices …
• PlaySpan Partners With Gaming Community Nonoba To Power Micropayments
• » ShoreBank's Evolution from Community-Based Banking to the …
• Motorola i1 runs iDEN with Blur, formerly Opus One | Android Community
• Thanks A Lot Lady Gaga, Now Nobody Wants To Wear Pants!!! Erykah …
• Tiger Wood's Caddie Speaks! He's Got A Lot To Say! | PerezHilton.com
• ONE (and a whole lot of our friends) on the FY2011 International …
• Getting A Good Currency Rate Means A Lot | xForce Articles
• Land Auctions RESIDENTIAL VIEW LOT, CITY OF LOS ANGELES, LOOK AT …
• Save-A-Lot Sends the warmest of Hellos! C.C. picks up on some of …
• The *wrong* Big Question. | Moe_Lane's blog
• Lingering iPad Question: Who Gets to Sell It?
• Open Question: Can you buy college text books for e readers? – Answers

A Purple Heart car donation can be of great benefit to a needy veteran who has been wounded serving their country.

Many people consider donating their car to charity when they purchase a new automobile. There are many organizations to choose from who would be very glad to receive your car donation. One organization that will gladly except car donations is The Military Order of the Purple Heart. If you are considering a Purple Heart car donation then here is some background information about the organization.

The Military Order of the Purple Heart is a non-profit organization that was founded on September 22, 1932 in Connecticut. However, the order of the purple heart was originally established by General George Washington. During the Revolutionary War only three men were awarded a purple heart. All three men were residents of Connecticut, so it is especially fitting that the first chapter of the Purple Heart Association was founded in Connecticut.

All members of The Military Order of the Purple Heart (MOPH) were wounded in combat. For this sacrifice, they were awarded the Purple Heart Medal. The money raised as a result or your car donation goes to assisting those veterans who are in need of assistance.

The Purple Hear organization makes it very easy to donate your automobile. They have an online form that you can fill out in order to begin the process or you can give them a call. They have attempted to make the car donation process easy and pleasant for vehicle donors.

Once they have your car donation information, they will contact one of their towing companies. The towing company will contact you to schedule a convenient date to pick up your vehicle. When the towing company arrives to pick up your vehicle, they will also pick up the title and keys for the vehicle. Once a Purple Heart car donation has occurred and they are in possession of your automobile and title, they will mail your IRS tax-deductible donation receipt. You should typically receive your tax-deductible donation receipt in approximately two weeks.

Please consider a Purple Heart car donation and help deserving veterans who have sacrificed for their country.

Related Blogs

• Is there anywhere in south florida I can buy cars that have been …
• The Benefits Of Using Forex Magic Machines | Used Car Donation Tips
• 10 Best Charity Car Donation Tax Deduction Tips | Donate Car For …
• Vehicle Donations to a Nonprofit of your Choice « Buzzin News …
• Is my car donation tax deductible?
• If Face To Face Contact Fails To Get A Huge Organisation To Pay An …
• car donation programs | car donation to charity | car dc donation …
• Popularity Of Car Donations | Recreation and Sports – Article Fabric
• What is your reason for living?
• OBAMA INAUGURATION ARTCRAFT SET/3 w/ #4263 PURPLE HEART — ButAsForMe
• Young @ Heart “Purple Haze” | Ezine Buzz Report

Now that the rules have been changed regarding the donation of vehicles, boats and trailers, the rules have changed on both sides of the charity organizations that have always been the central concern in the minds of donors.  Indeed, these rule changes were designed by the IRS to help ensure that more money from the sale of an auto or boat is directed at the charity itself and not just the third-party (usually for-profit enterprise) agent that handles the sale.

While non-profit (NPO) and charity organizations have been taking durable and appreciated goods as donations for a very long time, a major change in the tax laws that govern vehicle donations in 2005 have led to a new set of paperwork and documentation that you can expect from the charity organization you choose.

When you contact the charity organization of your choice or answer an ad calling for your unloved and unused boats and autos, you will very often be asked to vouch for its condition.  You should also be asked about the make a model of your automobile or boat.  This will help the charity determine if the vehicle is likely to warrant an independent appraisal or not.  This independent appraisal must be carried out within 60 days of the title transfer and must be done by an authorized appraisal agency, as approved by the IRS.

If a non-cash donation is likely to be valued at $5,000 or greater, such an appraisal is a necessary part of the documentation you’ll be required to present to the IRS along with a fully filled in Form 8283 (section B).  It’s often a good idea to take some pictures of such a high-value donation to your favourite charity organization, too.

The next most important thing you can expect from your charity organization of choice is a receipt of title transfer and a statement of intent.  They are required to deliver such documents to you within 30 days of receipt.  Generally, the better the condition of the vehicle you’re donating, the more likely it is to be used, as is, rather than being sold at auction.  This means that you have a much better chance of being able to claim a much higher legitimate deduction.

When you receive your invoice of intent from the charity organization, you’ll notice that it should outline the conditions by which the donation was made.  For instance, the IRS cannot tax non-tangible benefits such as your personal satisfaction, but they can make adjustments to your allowable deduction (in the form of an audit) if you’ve received any type of gift from the charitable organization that can have a value reasonably ascribed to it.  If you got as much as a calendar or a coffee mug in return, make note of it and subtract its fair value from your deductible.

If the charity organization ends up selling the car within two years of receipt, even if it has been used during that time to fulfill the charitable mission, you will receive a notice of sale (Form 8282) within 30 days of the sale.  That doesn’t mean you have to do anything to change the deduction you’ve already taken nor, are you able to take a second deduction.

Remember, if you’re donating an automobile, boat or RV to a charity organization, you won’t be able to claim any sort of deduction unless you file with a list of itemized deductions (as opposed to the standard deduction that applies, depending upon what status you choose to file under).  Many people find that since they don’t have any other legitimate deductions in a given year that it actually saves them money to forget that the donation ever happened.  In fact, when the GAO investigated filings from 2000 (even before donation deductible oversight was in place) as many as 15% of donors didn’t even bother taking itemized deductions.

However, regardless of how you choose to file your own tax returns, the charity organization you choose is beholden to provide you with all the documentation you’ll need to make sure the maximum possible deduction benefit allowed under law is yours.

Individuals aren’t the only ones who can reap the potentially manifold benefits of taking a valuable tax cut after participating in a charity car donation program.  Businesses that operate a legitimate fleet operation can get rid of unwanted, older and high mileage vehicles and be in a good postion to reap the highest possible “fair value” deduction that is allowed under current  charity car donation rules.  Of course, since this is a business return we’re talking about, there are special rules that accompany such a charitable contribution.

For starters, a business that runs (and presumably maintains a fleet) is in a position to donate time and labour to a vehicle donation program – not just used vehicles.  Valuing such service on your tax returns is tricky at best and is best handled by a CPA.  You should keep strict records of all interactions with the charity.  Car donation can be part of a total charitable package that can help greatly with end of year tax evaluation, especially if the business is teetering on the edge of a higher tax bracket.

Also, the so-called “50% rule” that applies to private individuals, limiting their allowable deductions to less than 50% of their taxable income, differs for businesses.  Generally, 30% is a reasonable self-imposed limit that will keep the auditors at bay.

How deductions are taken from your return also varies quite a bit by the the type of business you’re registered as and whether you file quarterly or annually.  Again, talking to your accountant about the possibility of taking a donation rather than selling fleet vehicles on the open market is usually a stop-gap solution to a higher than usual tax burden as calculated for quarterly returns.

Of course, the flip side of this coin is when individual charity car donations are destined to become part of a institutional fleet, such as those employed by colleges and universities.  These legal fleets are very likely to be maintained properly by trained mechanics, making it very likely that the individual donor will be able to take the “fair market value” deduction for a vehicle that is seeing fair market use rather than low-end resale for cash.

Other than the potentially high value of fleet cars that are donated and the extra concern of getting an independent appraisal for vehicles that will garner over $5,000 in legitimate deductions, the process is very much the same as private party charity car donations.  Indeed, just like private parties, one is required to use the actual value of the vehicle to the charity in question.

Since fleet vechiles tend to be in good repair, they are very likely to be used as is rather than sold at auction.  Charities know a good thing and a relatively late model vehicle in good working order to be received as a charity car donation is a rare thing.

As the owner of fleet vehicles ready for charity car donation, you can generally be assured that if you choose a non-profit, charitable organization with a mission to provide vehicular transportation to receive your donation, the odds are pretty good you’ll be able to claim a full “Private Party Values” from the Kelly Blue Book, depending upon the specific condition of your vehicles.

To make such a deduction claim from your legitimate charity car donations, be sure to take good pictures of the donated cars, just in case it ever comes to an audit.  If you’re prepared, you have a good chance of fighting such intrusions off without problem as long as you have the correct documentation.

Be sure to save every single receipt you receive from a charity car donation organization, no matter who is running it.  Often you’ll get one receipt from the actual transfer of title, and then in the next month or so, either a bill of sale or a record indicating what ultimate use your charity car donation was put to.  Again, it’s always best to keep your business accountant fully versed as to what you plan to do with fleet automobiles, but donation may actually take a bit of hassle out of what can be a tedious prospect of dealing with many potential buyers.