Know The Charity's Intention
Know what the charity intends to do with the auto donation.
Some charity car donations are resold and others are actually used by charities.
Knowing the charity's intentions will help to determine which IRS paperwork to file.
Charities must a lso record to the IRS what the charity car donation will be used for
which is useful in determining what charity is valid and worthy of donating a car to.
Car Donation - Tip #2
What the IRS Expects
Know what the IRS expects before you even look for a car donation charity:
Do I have to itemize? What paperwork do I need? Should I contact my tax consultant?
Request "A Donors Guide to Car Donation", Publication 4303 from the Internal Revenue Service
Car Donation - Tip #3
Tax Deductable Contributions
Confirm that the charity you donate your car to is eligible for tax deductable contributions. Request a copy of the charity's letter of determination issued to the organization by the IRS. This will verify the charity's tax exempt status. Retain this for your records.
Car Donation - Tip #4
Documentation
Document the value of your car. When you donate your car to charity, you are responsible for accurately evaluating the value of the car. If there is a discrepency in the accuracy of the value of the car the IRS will address the donor of the car and not the charity.
Car Donation - Tip #5
Documentation
Take photographs of the car and save any upgrade receipts before you donate your car to charity. These items will serve as evidence of the condition and value of the car should an audit occur.
Car Donation - Tip #6
Donating a Car Valued $500.00 - $5000.00
When the value of the charity car donation is more than $500.00 but less than $5000.00, donors must fill out IRS Form 8283, Section A. Donors can determine the value of this auto donation by consulting the Hearst Black Book, the Kelly Blue Book or determine the value by consulting The National Auto Dealer's Association Guide. It is important to accurately record the condition of the car, mileage, and year, make and model to avoid any IRS controversy.
Car Donation - Tip #7
Donating a Car Valued at $5000.00+
When the value of a charity car donation is $5000.00 or more a professional independent appraisal is necessary. Donors must fill out IRS Form 8283, Section B.
Car Donation - Tip #8
Receipt
Be certain to get a dated receipt that includes vehicle information from the charity for your charity car donation. It is recommended that you include the condition, mileage, year, make and model here as well.