At one time you may be blessed to buy a new car and feel like you want to donate your old car to a charity in the community, this is a move that should be encouraged because it helps self sustaining charity organizations to raise money for supporting and financing its programs. If you want to donate a car to any charity what you are required to do is to simply call or visit the charity and hand over the car to them. It is important however to consider several factors before handing over that car to the charity organization.
Some of the things you must consider and do before donating that car include the following;
Carry out research about that charity
It is important to know the organization you want to surrender your car to, therefore you need to take time and understand what kind of community organization is it? What kind of work does it engage in? How is the community benefiting from the organization’s activities? How efficient is the organization? What is its rating? And how has it been using past donations? Answers to all these questions will put you in a better position to know the kind of organization you want to give your car to and if your donation will be used as you wish.
Establish the actual value of your car
Take time and establish the actual value of the car you want to give to the charity. This should include the cost of any upgrades you might have made on the car. This is important because it will be needed when calculating the percentage of tax exemption.
Consider the tax benefits
Before you hand over that car to the charity, ask yourself if the charity is entitled to receive tax deductable donations. You can ask the charity to provide a proof of tax exemption by providing you with documents to prove the same. You must ensure that you will enjoy a tax reduction as a result of your donation.
Always demand for a receipt
When you donate a car to any charity remember to demand for a donation receipt from the charity because this will act as evidence and future reference that you actually made the donation. You must keep the receipt safely because it might just be useful when the tax man will come calling.
Ask yourself how will your car be used?
Another important aspect to consider is how the car will be used by the charity. Will its use be beneficial to the charity or will it be used for personal gains. It is good to hand over your car to an organization that will use it for the general good of the charity and the community. It is always good to donate the car to a charity that will use it within your local community but not outside.
Only give out the car if you really do not need it and if you do not have any other personal responsibilities that might be pressing you. Remember giving and donating should be done out of compassion and good will.