As we prepare for colder weather and get ready for the holidays, we shouldn’t forget that we are entering the season of giving. 2020 has been a tough year for many but it’s never too late to be generous. At the end of each year, we are often asked where’s the best program to donate to in these needy times. Car Donation Wizard has put together a list of things to do to ensure your end of year giving donation is well spent.
10 Tips to Maximize Your End of Year Donation
- Estimate your income and tax liability.
Take a step back and look at your tax liability for the year. Make sure you check for any unearned income increases or sold appreciated assets. Ask yourself these questions and your answer will determine how much money you can give.
- Talk with your advisor.
This time is a great opportunity to talk with your attorney or financial advisor while they’ll be filing tax returns. Discuss yours contributions, retirement, and your other assets so you can understand the impact a donation will have on your taxes.
- Check your portfolio
Consider assets that appreciated in the last year. If you sell or have sold assets you may incur capital gains on the appreciation. But, gifts of stock reduce the tax liability for the donor. These gifts can be deductible up to 30% of adjusted gross income and may carry the deduction forward for up to an additional five years.
- Beware of fraudsters
Though generosity is high this time of year, heinous criminals try to take advantage of this and create deceptive schemes to trap you in. Be careful of sketchy contribution programs that promise high yields or offer you incentives such as a cruise or a free trip. Click here to read our blog on avoiding car donation scams.
- Know your charity
Is your charity actually worth it? Do they help or impact your community? Is the charity a qualified 501(c)(3)? Make sure you ask yourself these questions. Take notice of the organizations you give your hard earned money to.
- Don’t wait till the last minute
Give early and make sure to have your donations complete or the interest transferred by December 31st.
- Consider alternative types of donations
Your gift doesn’t have to be cash or stock. Nearly 35% of all car donations occur from October throughout the end of December. Car Donation Wizard is proud to partner with reputable local and national organizations that benefit a variety of causes. As the nation’s highest performing car donation program, we will return 75-80% of the gross proceeds from the sale of your vehicle to the charity of your choice. You’ll receive a tax benefit while helping others, it’s a win-win situation!
- Ask about multipliers
There is a possibility that the charity you donate to might have challenge grants that can double your donation amount! Some have employee matching programs that can make your single car donation into a two car contribution. If you really want to get the most out of your donation, ask about this option.
- Donate your time.
Money and materials aren’t the only thing you can give. In the spirit of the season, this is a great time to volunteer for community activities. Bring a friend with you so you’re not doing it alone. Building a relationship with the charity you choose lets you know that your money is being used wisely.
- Ask questions
Don’t be afraid to get the answers you need. Where is the money spent, how much goes to fundraising costs, where you can find financial statements online, are all great questions to ask your charity. Be sure that your charity makes your donation count.
How to Donate Your Car
Don’t get caught up in splashy ads or promises. Avoid organizations with ‘kids’ in the name but no history of helping kids in the community. And remember, what you think is junk can make a huge difference in someone’s life. A single car donation can bridge the gap between despair and hope for a better future.
Ready to donate your car this holiday season? Support your favorite organization by donating your vehicle online or calling us at 1-877-957-2277.
Don’t see your organization listed? Use our Cars for Charity Vehicle Donation Program to donate your car to the nonprofit of your choice.