With the many options you have has a vehicle donor, who do you choose to handle your car donation?
Tax-deductible vehicle donations to nonprofits often increase as the year comes to a close and donors take advantage of the government benefit that reduces their taxes.
But experts caution donors about which organizations should receive their cars, boats or recreational vehicles.
The most important step is to verify that the organization they are giving to is a registered charity, Maryland Comptroller’s Office spokesman Joseph Shapiro said.
“Any on-the-level organization will be happy to provide someone with their federal and/or state tax number that shows they are a registered and recognized organization,” Shapiro said. “If they are reluctant to share a number, people should be wary about contributing if they want to ensure their gift can be listed as a donation.”
A change in the tax law in 2005-2006 reduced the amount of money donors could write off, resulting in fewer donated vehicles in recent years, said Thomas Skaggs, the mission’s director of development. Before the new law, donors could deduct the Kelly Blue Book value of their vehicles. “Right now, you can’t deduct any more than the nonprofit is able to sell the vehicle for,” Skaggs said.
So who do you trust? By asking the right questions at the start, you can find out how your vehicle donation will be handled.
Where are the cars sold?
Who determines where your car, specifically, goes? Is it a person or a computer?
How much does the charity really receive?
Any organization that has trouble answering those questions, needs to be put in the ‘proceed with caution’ bin.
Car Donation Wizard has a team of automotive experts that analyze each and every car received on behalf of their long list of charitable organizations (Habitat for Humanity, American Cancer Society, Car Talk, UNICEF USA, and more!). Your vehicle is then sent to the best facility for re-sale, earning you a greater tax deduction and more money for your nonprofit. Charities partnered with Car Donation Wizard received 80% of the net proceeds, and proudly run the nation’s highest returning vehicle donation program in the country.
Choose a charity today by clicking here.
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