Car Donation Charity
Car Donation Tips
Making
a car donation is a great way to dispose of an unwanted vehicle and contribute
to a charity at the same time. Caution should always be used when you
are making any type of donation.
Make it your business to know all about a charity before making a donation so that you are certain your contribution is worthwhile.
Charities
Before making a car donation to a charitable organization you need to
consider whether the charity is eligible to receive deductible car donations.
Not all charities are eligible to receive tax-deductible contributions!
- Tax exempt means that the organization does not have to pay taxes.
- Tax deductible means the donor can deduct contributions to the charity on his or her federal income tax return.
The charity should be able to provide you with verification that their charity is tax exempt as a charity under section 501 (c) (3) of the Internal Revenue Code. If the charity does not have a tax exempt letter indicating its status with the IRS, you cannot legitimately claim your contribution as a tax deduction.
Where
Your Funds Go
If you want to know how a charity has spent funds in the past you could
ask for copies of their latest annual report and IRS Form 990. This will
tell you how funds were spent in the past fiscal year.
Verify whether the charity is registered to solicit with your state government's charity registration office.
Contact your Better Business Bureau for information they may have on file. BBB Wise Giving Alliance offers guidance to donors on making informed giving decisions through charity evaluations.