Many well-known and reputable charitable organizations accept car donations, including Habitat for Humanity, Disabled American Veterans and the Make-A-Wish Foundation. But a Kars4Kids report on its operations in 2020 shows most spending (60%) was devoted to its programs that year.īefore selecting an organization to donate to, you might want to look the charity up on CharityWatch or a similar nonprofit database to be certain it shares your values. Donate to efficient and transparent charitiesĮven legitimate charitable organizations may be vague about how they use donations, or might use only a small percentage of contributions on charitable programs.įor example, one controversial car donation program is the Kars4Kids program, which runs commercials on radio and TV nationwide.Īccording to CharityWatch, an organization that evaluates charities based on efficiency, governance and transparency, while Kars4Kids is a legitimate 501(c)(3) charity, it deceives potential donors by failing to inform them that it serves only children of a particular faith, and primarily in New York and New Jersey.ĬharityWatch also reported that Kars4Kids spent more on overhead than charitable programs in 2015-a red flag suggesting the organization didn’t use donations efficiently. If you’re not sure whether an organization qualifies, search for the charity in the IRS Tax Exempt Organization Search Tool, or call the IRS at 87 and have the charity’s name and address handy. Most charitable organizations that are qualified to receive tax-deductible donations have a 501(c)(3) status with the IRS. Ensure the organization is qualified to receive tax-deductible donations If you donate your vehicle to an organization that isn’t qualified by the IRS to receive tax-exempt donations, or if you don’t get the proper paperwork, you won’t be able to claim a tax deduction. When donating your car to charity, take precautions to avoid being scammed or contributing to a questionable charity. If you use any of today’s best online tax software, the program should fill out the required forms for you automatically after you answer questions about your donation. You’ll need to attach Form 1098-C or any other written acknowledgment, and Form 8283, “Noncash Charitable Contributions,” to your tax return when you file it. In that case, the written acknowledgment from the charity should confirm that the organization plans to use the vehicle and describe its intended use. However, if the charity intends to use the car in its operations, you can deduct the car’s fair market value on the date you donated it.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |