{"id":10830,"date":"2016-04-11T05:04:00","date_gmt":"2016-04-11T05:04:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=10830"},"modified":"2025-01-17T19:47:12","modified_gmt":"2025-01-17T19:47:12","slug":"in-giving-mood-why-not-donate-vehicle-to-charity","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/in-giving-mood-why-not-donate-vehicle-to-charity\/","title":{"rendered":"In a Giving Mood? Why Not Donate Your Vehicle to Charity?"},"content":{"rendered":"\n

Well, it\u2019s the dreaded tax season again \u2013 a time when many Americans are on pins and needles wondering how much they\u2019ll owe Uncle Sam. Meanwhile, others are hoping their tax refund will be big enough to take that summer trip to Hawaii or put a down payment on a new car.<\/p>\n\n\n\n

But, what if you got hammered this year and desperately need a tax deduction you can use on next year\u2019s returns? Yes, it\u2019s too late to stop the bleeding this year. However, if you\u2019re in a giving mood and want to do a good deed while getting a nice tax deduction in the process, donating that car, truck, or boat you hardly use could be the answer.<\/p>\n\n\n\n

Over one million people donate a vehicle to charity every year. Some do it for the tax deduction and others do it to help those less fortunate. Whatever your reason, it\u2019s a win-win for all involved.<\/p>\n\n\n\n

To qualify for the deduction you only need to donate the vehicle by December 31st<\/sup>. But, don\u2019t wait until the very last minute as the title will have to be transferred prior to the end of the year. Besides, what\u2019s the point of continuing to pay for auto insurance<\/a> unnecessarily when you can simply cancel your coverage on the vehicle that much sooner and save a few bucks?<\/p>\n\n\n\n

While donating a vehicle may seem as easy as 1-2-3, there are a few valuable tips you may want to follow to do it properly.<\/p>\n\n\n\n

Picking a worthwhile charity<\/h2>\n\n\n\n

If you don\u2019t have a charity in mind, do a little checking. Ask friends, people you work with or family members what their favorite charity is. Should that not prove helpful, do your own homework to find a charity that accepts vehicles and boats on a donation basis.<\/p>\n\n\n\n

Researching the charity<\/h2>\n\n\n\n

By all means, research the charity you are considering. First, be certain to choose a charity that has been approved by the IRS as a 501 (c) (3). To find one, the IRS publishes A Donor’s Guide to Vehicle Donations.<\/p>\n\n\n\n

Furthermore, in the internet age, you can get information on virtually anything and anyone. Call the charity and ask them what they normally do with donated motor vehicles. Now, here\u2019s where their answer can affect your tax deduction.<\/p>\n\n\n\n

For instance, find out if the vehicle will be resold for cash or given to a needy family without a car.<\/p>\n\n\n\n