Many charity organizations accept used cars as donations. Most of these organizations sell the car and use the money for their charity work. Donating your used car, apart from the noble cause, can also provide you with tax deductions. Also most people prefer to donate their used cars to charities in order to avoid the hassle of trying to sell them.
Most charities have easy methods of accepting a used car and most have online application forms and fast processing. When it comes to taxs, you can claim the car’s fair market value if the car is worth less than $500 or is in good working condition. You can claim a deduction equal to the actual sale price of the car if the car is worth more than $500. However you should make sure that the charity is qualified and registered with the IRS in order to claim such tax deductions. Information can be found on the website or with the IRS. You should also remember that if the total donation is more than $500 you need to fill a separate form.
You can determine the value of the car by checking the blue book value. You should also take the cars condition in to consideration when determining its value. Most charities provide free pick up and tow from any location. While many charities accept used car donations for free you should keep in mind that some charities charge a small fee. To find charities that accept used car donations you can check the yellow pages or simply use a search engine to check online. Most charities provide online forms.