For some households, the donation of a car to charity can represent the
single largest contribution made to charity during the year. This is all
the more reason for donors to make sure their generosity is helping
those in need while also resulting in the anticipated tax deduction.
Unfortunately, contributors need to be careful as appeals for such
in-kind gifts can also lead to disappointments if proper steps are not
taken.
Of course, the first step is to check out the charity before making such
a gift, especially if you are unfamiliar with the organization. Don’t
assume what the charity does based solely on its name. In addition to
ensuring the charity is registered to solicit with the government agency
in your state that regulates charities (usually a division of the office
of the state’s attorney general), see if there is a report on the group
at Give.org which specifies that the charity meets the 20 BBB Charity
Standards.
Ask the charity how much it receives from the charity auction that sells
the collected used cars. It could be a percentage of the gross sales or
a fixed amount per vehicle. In some cases, the organization may be
receiving just a small amount.
See the following IRS Publication on car donations to learn about the tax
deductibility rules involving such gifts https://www.irs.gov/pub/irs-pdf/p4303.pdf
Finally to avoid potential trouble, make sure to transfer the title of
the car to the charity’s name before it leaves your possession. This
avoids the hassle of dealing with the car being involved in an accident
and/or is parked illegally after you make the donation.
For additional tips on car donations visit: http://www.give.org/for-donors/about-specific-giving-guidance/car-donations/
Video of the Week
As part of our Building Trust Video Series, we are pleased to provide a
video featuring Michelle Jackson, President & CEO, Ability Connection
Oklahoma (a BBB Accredited
Charity) that provides programs and services for individuals
with cerebral palsy and other disabilities in Oklahoma.
Recent Reports
We are always working with charities to publish or update reports for
donors. Visit Give.org or local
BBBs to check out any charity before giving. Our recently evaluated
charities include:
Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ if
you are interested in seeing a report on a charity not on the list
and we will do our best to produce one.
H. Art Taylor, President & CEO
BBB Wise Giving Alliance
