How the IRS Calculates Your Good Will
Jan 12th, 2010You are to be congratulated! In a time when others may be holding on to every worldly possession in sight you are considering giving what could be the largest charitable contribution you've ever made. But how does the Uncle Sam look at this generous gift? The simple answer is this: the IRS wants proof of how much the charity benefited from the donation.
Believe it or not, when you donate a car to charity what happens to the car after it's picked up by the charity is very important to the IRS. The Internal Revenue Service is attempting to get as accurate a figure as possible representing the benefit of your car donation to the charity. They've set up of a tiered value system with the following rules to arrive at the value of your contribution.
- Up to $500: A vehicle donor can claim a charitable contribution deduction up to $500 of the vehicle's value, regardless of what the charity does with the vehicle.
- Over $500: The tax deduction claimed must match the sale price the charity received when they put the car up for sale, or the fair market value if the vehicle is used to further the charity's programs.
- Over $5000: In the case of the sale of the vehicle by the charity, the sale price is all the documentation you need to claim a deduction of over $5000, in the case of the vehicle being put into use by the charity you will need to obtain an independent appraisal to substantiate your claimed value.
Initially this could be a little bit overwhelming to someone considering donating their vehicle for the first time. However, there's no need to panic, at DonateACar2Charity we've been handling vehicle donations just like yours for over 10 years. If you need more details regarding your particular donation just pick up the phone and dial 1 (866) 779-1362 to speak to one of our experienced operators. You can also browse our site where we've posted a wealth of information about car donations and the most common IRS questions and tax form issues.
Thanks for visiting! We're here to help if you have any further questions.
Donate Car for 2009 Tax Deduction
Dec 7th, 2009During this Holiday Season of giving, donating a car to charity can make a difference in someone's life! Remember that you can donate your vehicle online any time before midnight, December 31st and you will still be able to claim your tax deduction for 2009. One of the most frequent questions we hear from donors is what type of deduction they will be able to claim for their car donation. The deduction you claim depends on several factors, but can be easily broken down into three categories:
1. Vehicles that will be sold for parts or scrap, or that are valued at under $500: You can claim up to $500 for your vehicle donation with the acknowledgment receipt that you will receive at the time of your donation.
2. Vehicles that are sold at auction for more than $500: You can claim a tax deduction for the gross sale amount of your donated vehicle. The additional IRS forms required for this deduction will be mailed to you promptly when the vehicle is sold.
3. Fair Market Value deduction: The IRS allows you to deduct the Fair Market Value of your vehicle if it is used for the charities nonprofit purpose, or if it is sold to needy individuals for below the market value. If your vehicle is in good running condition, and can be used for our charity's purpose, please request evaluation at the time of donation to see if your vehicle qualifies for a Fair Market Value deduction.
Happy Holidays from Donate a Car 2 Charity
Donor in Glastonbury, CT found our site helpful
Dec 1st, 2009Thank you for the ease and accessibility I had with finding your site and using it.
--G.F in Glastonbury, CT
Professional and Helpful
Nov 21st, 2009Your colleagues with the Houston office, were professional and helpful. If I do decide to donate this vehicle in the future, you can rest assured that I will reach out to Activated Ministries with the gift.
-- A. A. of Houston, TX
Reliable Pickup in Brookfield, CT
Nov 19th, 2009A man from Bristol just picked up the car. Was very personable and more than reliable. He was EARLY. This never happens.
--D.K. from Brookfield, CT
Happy Donor from Denver, Colorado
Nov 17th, 2009I sincerely apologize for not writing earlier and thanking you for accepting my car donation. The car I donated to your esteemed organization was dear to my heart, because it was the first I owned here in the States.
My husband and I were not sure to which Charity we were going to donate it to. But, when I searched online, yours was the one I chose. I am happy I did so.
-- M.A. in Denver, Colorado
Donate A Car - Change Two Lives
Aug 25th, 2009Donate A Car - Change Two Lives
Donating a car can seem a daunting task. “When I donate a car, who takes care of all the paperwork?” you may ask. That’s a valid question, and the answer is that Donate A Car 2 Charity does, along with a little help from you. When you donate a car to charity we need one of two things from you, either the signed title of the vehicle or in absence of the car’s title your signature on the appropriate form authorizing us to take the car donation. You’ll also want to notify your state vehicle authority that you’ve donated your car; you’ll find details on how to do this and a wealth of other information broken down by state right here on our site. We’ll take care of the transfer of the title, as well as keeping detailed records of the donated car’s destination.
In just a few steps you’ll have all the information you need to donate a car. And of course if you still have questions about how to donate your car you’re welcome to give us a call at the toll free number listed above. If you want to donate a car but think your situation warrants special handling or is more complex, don’t worry. We’ve been receiving donated cars for 8 years now and chances are we’ve handled a situation like yours before. So call today before you donate a car to talk to one our experienced operators.
Through this generous act to donate a car you not only change your circumstances but those of another. For you the change comes by way of no longer having to deal with the car you just donated and a decent tax deduction receipt from us. For that other life you’ve changed you need look no further than our projects page at Activated Ministries. Every day we take the car you and other individuals donate and turn the proceeds into desperately needed materials and support to dedicated volunteers all over the globe. So Donate A Car today, it only takes a couple minutes, and it’s an action that literally will be felt around the world as well as right in your backyard.
Car Donation: A Few Thoughts
Aug 19th, 2009Car Donation: A Few Thoughts
Thank you for considering Activated Ministries for your car donation. We appreciate and need every vehicle that comes our way. While receiving car donations allows us to fund more of our exciting projects around the globe, there are other ways that giving your car away benefits everybody.
For one, car donation is changing people's lives every day in this country. Donors are getting rid of old clunkers they'd never use in a million years, cleaning up their yard, and getting great tax breaks in the process. Recipients are finally getting the help they need to kick start their lives and get things back on track. All in all, it's a great boon to society.
Another thing: we're starting to get the older cars off the road, the cars that cause a lot of the pollution that's giving our world fits. People who are doing car donation are then going out and buying newer, more economical cars. This stimulates our beleaguered economy, especially the faltering automobile sector, and it helps ensure that our children's children will face a better future with less man made pollution. And that's a very, very good thing.
Donating A Car Is A Big Decision
Aug 17th, 2009
Donating A Car Is A Big Decision To Make
It's an extremely important decision to make, and it should never be treated flippantly or casually, but I think - for most people - donating a car to charity is an excellent choice in almost every situation. For a young person who's never had to make a big financial decision, it's perfect because it teaches them about taxes, tax deductions, Blue Book values, and it teaches them the importance and value of helping one's fellow man out in a tough spot. In fact, that's something we could all probably stand to learn. We can't rely on other people to pick up the slack and donate to charity all the time, so donating a car to charity - donating your own car on your own time - is one way to seize control of the situation and start committing good deeds. You can't expect other people to do everything; that's why were in this mess in the first place!
Donating a car to charity can even be seen as a totally selfish act, if you aren't interested in helping people out. And that's totally fine. As long as you're still donating a car and helping someone, it doesn't matter that your motivation isn't selfless. The end result is what matters. As long as there's a happy family with a new chance at a good life, things have worked out.
Donate A Car And Improve Your Life
Aug 14th, 2009
Donate A Car And Improve Your Life
If you're ever wondering why your life isn't going as well as you once imagined it would, think about whether or not you should donate a car to charity. While it may seem like giving away something for free is the last thing you should be doing, it can be a surprising boost to your quality of life. After all, a big part of living well and feeling well is knowing that you're doing good deeds and helping others with their problems. When you donate a car to charity, you are definitely helping someone less fortunate than you - and even if you don't believe in a deity or in karma or anything like that, it's generally a good thing to help people by donating to charity.
Donate A Car To Charity
So what's stopping you from deciding to finally donate a car to charity? Unless you absolutely do not have an extra car to spare, there is no good reason not to do it. You know it's true. If you have that extra car collecting dust and becoming a repository for weeds and small wildlife on your lawn (while also drawing the ire of your neighbors for lowering the property values with your display), why not donate it? Donate a car to charity and watch all the secret benefits mount up and give you peace of mind that you're finally doing something to help people out.





