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Step 1
Donate Directly To The Charity
Middlemen typically receive 50% - 90% of the vehicles value. Charities use middlemen too get donations because they end up getting more donations than they would if they had to solicit for the vehicles themselves. If you want the full value of your vehicle to go to your favorite charity then contact the charity and ask if they accept vehicle or boat donations. Cut the middleman out.
If you don't have time to donate directly then ask the middleman how much of your car or boat's value will go to the charity. -
Step 2
Find a worthy charity. If the charities you normally support aren’t equipped to accept such donations, do some homework until you find a reputable charity that is. You can research charities’ track records online at this Better Business Bureau site and through Charity Navigator.
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Step 3
Check the math. If you still feel compelled to use an intermediary organization – possibly because you’re busy – at least ask the organization how much of the car or boat’s value will go to charity. If the organization simply gives charities flat fees — say, $100 for a used vehicle regardless of its value, or $2,000 a month — your donation may not be eligible for a tax deduction.
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Step 4
Know the status of your recipient. In order for you to qualify for a deduction, the charity that gets your donation must be an IRS-approved 501(c)(3) organization. Your church, synagogue, mosque or temple likely qualifies. (Check first just to make sure.) You also can visit the Internal Revenue Service’s Web site and search for Publication 78 to find other qualifying non-profit organizations. (Just type “78” into the search field on the IRS home page and you’ll be directed to the right publication.)
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Step 5
If possible, deliver the car or boat yourself. It will cost the charity extra to have someone come out and pick up your donation.
Once the vehicle is dropped off inform your local department of motor vehicles of the change of title. You don't want to be accused of running up parking tickets or worse 6 months down the road. -
Step 6
Get a receipt from your charity showing the car or boats value. You will need this for your taxes.
Keep all documentation and receipts. -
Step 7
Donating a car or boat to charity is a wonderful gift.
