Benefits for donating a car|To donate a car|Car donation tips|Donate a car charity
Channel: CH TV
Date: 30/01/2017

Benefits for donating a car to a charity.

The main objective of this video is to help you find out more about: 
1. Why donate your car to a charity?
2. Preparations before doing a donation.
3. What to remember at the end of donating a car to a charity?

I recommend that you watch this video till the end so that you don’t miss any important information through out the whole process of donating a car to a charity.

Why donate your car to a charity?
If you have a car in decent working condition, by donating it you will:
1. Help a charity whose work you believe in
2. Get a healthy tax write-off
3. Avoid the hassles of selling the car yourself
4. Get rid of a car that does not have proper title

If a tax deduction is an important consideration
for you when donating a car to a charity, you should check out the charity, see if you get the tax benefit, check the value of your car, and see what your responsibilities are as a donor. 
Check out the charity
If you are eligible to deduct charitable contributions
for federal income tax purposes and you want to claim a deduction for donating your car to charity, then you should make certain that the charity is a qualified organization. Otherwise, your donation will not be
tax deductible. The most common types of qualified organizations are section organizations, such
as charitable, educational, or religious organizations. 
To verify that an organization is a charity qualified
to receive tax-deductible contributions, see more info online at www.irs.gov/eo (under the Search for Charities)
See if you get the tax benefit
You can deduct contributions to charity only if you itemize deductions on your Schedule A of Form 1040. 
You must take into account certain limitations on chari- table contribution deductions. For example, your deduc- tion cannot exceed 50% of your adjusted gross income. Other limitations may apply. Publication 526, Charitable Contributions, provides detailed information on claiming deductions and the deduction limits. It also describes the types of organizations that are qualified to receive tax- deductible contributions. Publication 526 is available online at www.irs.gov or by calling (800) 829-3676 (toll-free). 

Check the value of your car
The maximum amount you can deduct on your income tax return is the fair market value of your car. Fair market value is the price a willing buyer would pay and a willing seller would accept for the car, when neither party is compelled to buy or sell, and both parties have reasonable knowledge of the relevant facts. 
Some fundraisers have mistakenly claimed that donors can, in all cases, deduct the full value of their cars as found in a used car guide (such as “blue book” value). A used car guide may be a good starting point to value your car, but you should exercise caution. The IRS will only allow a deduction for the fair market value of the car, which may be substantially less than the “blue book” value. 
Example: You donate your car to the local high school
for use by students studying car repair. Your credit union representative told you that the “blue book” value of the car is $1,600. However, your car needs extensive repairs, and after some checking, you find that you could only sell your car for $750. Your charitable contribution deduction may not exceed $750, the fair market value of the car.