Vehicle donation process has become extremely simple in recent times. Many charity organizations are now coming forward to accept vehicle donation as it is a very effective way of receiving indirect help from individuals who too, are benefited in the process. The process of vehicle donation starts with an individual choosing a charity of his or her choice to make a vehicle donation. One has to ensure that this charity organization is approved by IRS, in order to get any tax benefits for making the charitable contribution. Another constraint is to find a charity organization that has a vehicle donation center within the same city as that will make your task relatively easier.
The process of vehicle donation can be accomplished online where individuals can provide details about their car and request for free towing or pickup service, especially if the car is not in a particularly good condition. An important aspect of the vehicle donation process is the transfer of ownership of the car, for which you must have the certificate of title handy. If you want to make a vehicle donation but have lost the certificate of title you need to inform the charity organization. Some charity groups will help you with the ownership transfer process without the certificate of title.
In the process of vehicle donation, you receive a written acknowledgement from the charity which should confirm the charitable contribution along with details of the individual like taxpayer identification number, name, vehicle identification number and date of vehicle donation. The written acknowledgement provided for vehicle donation should also confirm the fact that the individual did not receive any goods or services in exchange for the vehicle donation. Moreover, the vehicle donation should be of a personal vehicle and not that which is meant for sale or which is on lease.
An important aspect of vehicle donation and the process of tax deduction claims is the dependency on the fair market value of the vehicle. If it is above $500, then the written acknowledgement needs to furnish additional details. The charity organization also needs to mention what it intends to do with the car it has received through vehicle donation and how it intends to use it. In order to claim tax deductions, those who make vehicle donation have to fill forms 1098-C and 8283, the latter in case the value exceeds $500.