Donate a Car For a Tax Deduction - Which Car Donation Organizations Are Legitimate?

If you're thinking about donating a car to a charity or non-profit organization so you can get a tax deduction a few questions may come to mind. First of all you're probably wondering what car donation organizations are legitimate? Of course, you want to know that the charity or charitable organization you donate your car to is qualified and just not out to get your car for selfish monetary gain. And know that you'll be able to take a tax write-off.

You'll find there are many types of charitable organizations including religious organizations such as churches, mosques, synagogues and temples. So where do you begin.

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There are many national organizations as well as local organizations. Many with names you've probably heard like Goodwill, Purple Heart for our vets, and the Kidney foundation just to name a few. But local organizations or local chapters of the national organizations will be coming to pick up your used car or tow it unless you are able to drive the car to the charity after all arrangements are made.

You want to make sure that the charity or charitable organization you choose is operating legitimately. Yes, there are car donation programs or organizations out there just looking to take your car and not providing what you need in terms of documentation for your income tax return.

However, you can avoid that by asking the charity if they are a registered 501(c)3 charity or other qualified religious organization. Ask to see proof in writing. Once your car or other vehicle changes hands it will be hard to get it back. You need to verify this so you know that they can legally accept your car and that you can legally take a tax deduction. Religious organizations are not required to get registered however.

Be aware that there are car donation intermediaries. These are companies that advertise to get you to donate your car to them and they take a good chunk of the profit. (Charities hire them to handle their car donation programs.) It could be as much as 55% or more. Ask if your charity uses an intermediary. If you want the profit to go directly to the charity you need to choose one that does not go through an intermediary.

Some charities charge a vehicle removal fee. Most legitimate charities will pick up you car or truck or other vehicle without charging a fee. In addition, if you deliver it of course, there will be no fee. So make sure to ask if there is a removal fee.

So that's what you need to know to determine which charities or charitable organizations have legitimate car donation programs. You may want to pick a name that you know has been around for a long time and check them out first. Most have local chapters so it should be easy.

Donate a Car For a Tax Deduction - Which Car Donation Organizations Are Legitimate?

For more tips on choosing the best car donation, car donation program, used car donation or charitable car donation online and offline go to http://www.Car-Donation-Info.com for charity and tax deduction tips, help, facts, reviews, including information on all types of car donation

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How to Research Car Donation Programs to Confirm They Are Legitimate

"Proceed carefully" that is what IRS Commissioner Mark W. Everson wants people to do when they are considering donating a vehicle to charity.

Vehicle donations can raise a substantial amount of money for charities. The GAO (General Accounting Office) estimates that in 2000 alone 733,000 individual tax returns listed a deduction for a vehicle donation with the value of those donations being around .5 billion dollars.

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It's the willingness of so many people to donate as well as the promise of all those billions ripe for the taking that makes the idea of vehicle donation scams attractive to criminals looking for an easy score. There are several places kind-hearted donors can go to conduct research and avoid becoming a scam artist's victim.
Publication 78 is an annual, cumulative list of most organizations that are qualified to receive deductible contributions. You can find the publication online or in many public libraries. If you can't find it in either of those two places you can call the IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500. Note that certain religious and government entities are not required to apply for this exemption in order to be qualify for 501 (3) 3 status. For organizations such as those, you will need to consult other sources to verify their legitimacy.
IRS Publication 526 and IRS Publication 561 will assist you in determining the rules and regulations associated with vehicle donations. The rules and regulations for filing to receive vehicle donation related deductions can be quite complicated and knowing them in advance can help you avoid being scammed.
The State Attorney General's Office or the Secretary of State's Office keeps records of who the state charity officials are, how long a charity has been in existence as well as the percentage of revenue the charity spends on its charitable programs to the percentage it spends on administrative costs. You can find a list of state attorney generals online at naag.org. For example, in Minnesota the Office of the Attorney General has a Charities Division. The contact information for that office is; Office of the Attorney General Charities Division, 1200 Bremer Tower, St. Paul, MN 55101-2130, Phone: 651-296-9412.
The State Charity Official can also assist in verifying the legitimacy of a charity. These state officials are part of a broader group called the National Association of State Charity Officials. A list of state charity officials can be obtained through your state attorney general's office or online at nasconet.org.
The BBB Wise Giving Alliance is part of the Better Business Bureau. They provide and assist with verifying legitimate charities. You can call them at (703) 276-0100 or contact them online at bbb.org/charity
Your local consumer protection agency will assist in verifying charities. You can reach them online at consumeraction.gov.
The Federal Trade Commission assists in maintaining a database called the Consumer Sentinel Network. This database in part keeps track of questionable charities. You can contact the FTC by either calling them at 1-877-FTC-HELP or logging onto their website at ftc.gov/charityfraud.
The U.S. Department of Defense maintains information on charities associated with Military Relief Societies. You can research such affiliated charities through militaryhomefront.dod.mil
The Charity Navigator is an independent charity evaluator who maintains information on over 5,400 of America's largest charities. They can be reached by calling (201) 818-1288 or logging onto their website at charitynavigator.org.
The American Institute of Philanthropy is a nationally recognized charity watchdog service based out of Chicago, IL. They provide valuable information in as informative tri-annual report called "Charity Rating Guide." They can be reached online at charitywatchdog.org or by calling (773) 529-2300.
GuideStar maintains a database of 1.8 million IRS-recognized. The organization was founded with the dual purpose of promoting nonprofit transparency and serving as an information warehouse. You can call them at (757) 229-4631 or log onto their website at guidestar.org In summary, when considering charitable car or vehicle donations, remember the old adage "fools rush in where wise men fear to tread." If you do your research in
advance there is less chance that you will be taken advantage of.

How to Research Car Donation Programs to Confirm They Are Legitimate

If you want to donate your car to a reputable charity in Minnesota, visit http://wheelsforwishes.org/ or http://vehiclesforveterans.org/

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