Charitable car donation

Guidelines for charitable car donation:

1. A prospective car donor needs to understand the following guidelines before starting the process of the actual donation and claiming of tax exemptions.
2. Identify the right intermediary for donating the car. There are innumerable agencies that claim to help the charities by selling the cars donated by people. Many of them are out and out profiteers who retain almost 90% of the sale proceeds. Even the better among them retain 50% and pass only the balance to the actual charities. If possible, avoid using the services of the intermediaries and donate directly to charities which either use the cars for their own purpose or conduction auctions on their own.
3. Check about the mission, the values and the focus of the charity. Find out if the charitable institution is really serving the needy. Donating the car to the right charity will give you the satisfaction of truly helping some one in need.
4. If you are interested in helping a particular section of the under privileged, for example, destitute children, take the time to locate a charity that is involved in that activity. This time spent is worth it because you can then ensure that the cause that is close to your heart is being helped.
5. You can even approach Better Business Bureau for their advice. You can check with the local Attorney General's office for confirming the charity's registration under section 501 (c) (3). You can gain confidence in the charity if you study their accounts balance sheet for the previous years and confirm the amounts collected and spent by them.
6. Do remember that the IRS only allows the tax paying donors to use the fair market value for a car donation tax deduction under certain conditions. The donation cannot be more than $500 to receive a car donation tax deduction. Alternatively, the car has to be used by the charity in its services. When a charity uses the donated car for a meals-on-wheels program, the donor may be entitled to claim the car's fair market value as a tax deduction.
7. Some factors that determine the value of your car are its general condition, high mileage and fuel consumption.
8. You can refer to the IRS publication 526, "Charitable Deductions" and the IRS Publication 561, "Determining the Value of Donated Property" for more details.
9. Once you decide on the charity, do ensure to transfer the car's title to them. Not doing so can land you in trouble; you may end up paying for parking tickets or worse.
10. If your car is worth more than $500, make sure to fill up the form 8283 and submit to the IRS along with your annual tax returns.
11. You must have the patience to find the right charity, the right fair market value and follow the process of obtaining the acknowledgement and filing proper returns. When you do all this you will relax with the knowledge that your effort has really helped some needy people.