To Donate Your Car To charity In The State Of California – Do you have a car that you think you no longer need? Maybe it is old or it is always broke down, and you may be thinking “how to get rid of this junk?” Well if that’s what you are thinking, then it would be best for you to donate your car to charity, seriously? Although this may sound ridiculous it may be hard for you to believe this but donating a car can give you more benefits than selling them.
This is a fact as more and more people donate their cars to earn quick cash or simply help the charity compared to those who want to sell them. Now if you are thinking to sell your car have you ever thought about the time that would cost you, objections you will handle especially if your car is old and is having a technical problem, then there is a high chance the car wouldn’t even sell at all. This is why donating your car is the best way get rid of your car fast, and earn some quick bucks, besides you are not only helping yourself but the community will be grateful too for your kind donation, and you may as well get several benefits like:
- Tax deduction
Donating your car can give you a tax deduction if you include it in your charitable contribution deduction, although how much tax deduction you get is mostly determined on the condition and model year of your car has to the marketplace.
- Vacation voucher
In return for your generous donation, some charity organizations might give you a vacation voucher but remember it can also affect your tax deduction by subtracting the value of the marketplace from the car donation.
These are the benefits that not even an old car seller could get and luckily donating cars in California is relatively simple and easy, just follow these seven steps and guarantees your junk will move out of your lawn free of charge.
- Search for a non-profitable organization
In California there are manyorganization on online that offering to receive your car no matter what condition it will be, but be careful don’t let yourself get fooled by profitable organization that would only sell your car for profit and what worse, in return you probably wouldn’t get any tax deduction from them, but how is this possible? It’s possible because only non-profitable and recognized as 501 (c) (4) organization is allowed to add your car donation as charitable contribution deduction which means the organization doesn’t make any money out of you, but if you are going for profitable organization then it will be no different from selling your car and the IRS will only see that as a sort of income. Now, if you are confused about where to look start by looking for local non-profitable organization in your area like California Community Foundation, Cars2Charities, and Riteway Car Donation or if you want a faster route you can go for national organizations like kars4kids, make a wish, afforkids, and more. Keep in mind depending on which charity you choose some may have their purpose like for medical causes, animal rescue, etc.
- Apply for the title
In California, it is mandatory to have the title when you want to donate your car, to get the title, first apply for a car donation title at your charity organization or any local DMV office then they might require you to provide them with detail information about your car. This part is necessary if you want to include your car donation as a charitable contribution deduction. Now you need to provide this information to your non-profitable organization:
- Car make
- Car model
- Car body type
- Certificate of Vehicle Number (CVN)
- Current mileage
- Date last driven
- Complete the title
Keep in mind the rules may vary in each state, but in California for you to complete the title, first you need to enter the name of authorized agent that will pick up your car for the charity, for example, the Advanced Remarketing service in the buyer/purchaser field, then print and sign your name in the seller/owner field at the top of the title Take note that the title must be signed by all parties, no liens should be listed unless it is signed with accompanying document and watch out for writing error since this is an official document the IRS won’t consider your donation seriously, so treat the title with little respect.
- Schedule for the pick-up
Within 2 or 3 days you will be contacted by their towing agency to pick up your car, and you will be given a receipt that shows the IRS approved your donation as a charitable contribution, but in California, they may ask your license plate to stay on the car except if it’s a personal issue. So you better schedule a convenient time for your car pick-up.
- Determine the value of the car
Now your car has been successfully delivered to the non-profitable organization next you need to determine how much value your car has to the marketplace because depending on the value of your car, you might be required to fill out several forms. For example, if your car is worth more than $5000 then you need to fill out sections A and B of IRS form 8283 for your tax deduction, if its between $500 to $5000 then you need to fill out the section A only, but you only need to fill out a receipt from the charity for your tax return if your car worth less than $500. If you are not sure how much your car worth try using online tools like Intellichoice or Nada Guides.
- Estimate how much tax deduction you should get
To make the result goes as you excepted you need to know what the charity did to your donated car and estimate the right amount of tax deduction you should get. The amount of deduction may vary, for example:
- If your car sold for more than $500, then you can claim the exact amount the car is sold.
- If the car sold for less than $500, then you can claim the fair market value of the car up to $500 or the amount it is sold for if less than fair market value.
- However, if the charity uses the car for their use, then you can claim the fair market value of the car.
- Claim your rewards
After your donated car is sold to those who need, the charity will send you a mail notification that now you can claim your tax deduction and holiday voucher, now what? You can either subtract your standard deduction or your charitable donation, but hey the choice is yours, so choose wisely.