How to Donate A Car to Charity in Illinois
The biggest winner in the process of car donation is a donor and not the recipient who is in the charity. But, if you would take your time, ignore the simple and quick television appeals, and find a high-performing and reputable charity that will make the most from your donation. This way, you would be able to maximize the amount that the charity gets and minimizes the risk of IRS audit.
1. Go with the charity that accepts car donations directly
If it’s possible, don’t get the intermediate organization in-between that advertise to take care of your car donations. By hiring a charity that handles transaction themselves, you can be sure that all your profits will remain at the charity.
There are the possibilities that charity already supported by you have a car donation program about which you might not know. Make sure to check with them first.
2. Transfer your vehicle to the charity correctly
Most of the charities will ask you to leave the ownership assignment space on the papers of donation blank so that they don’t retitle it to auto. If your charity asks this from you, find another one. If you don’t sign it professionally to the designated company, you might be responsible for the parking tickets that are incurred subsequently, or currently liable if it’s used in a crime.
Always remember that the car that you give to the charity will not use it for any purpose but will try to sell it as soon as possible. If someone purchases it from the auction and doesn’t register it, it will still be in the eyes of the law.
3. Ensure that the organization is 501 (3) ©
While most of the companies claim the status of non-profit, donations to 501 (4) © organizations are normally not tax deductible. These are known to be the political companies with a permit to lobby the government such as the National Rifle Association or American Veterans. Always ensure that the recipient has 501 © (3) charity status.
4. Complete all the essential paperwork
Non-cash donations are the most common one of IRS audits, so it is essential to keep the documentation while donating the car. For example, if your car has a value of $250, then get the written acknowledgment from the organization.
5. Use the market value of the vehicle
There are various exceptions that allow you to use the guide of NADA but you can also use the FMV, not only the highest value that is listed for the year as well as making. Make the use of FMV when:
1. The charity improves the car before selling it
2. Instead of selling the vehicle, the company uses it
3. If the car’s worth is less than $500
4. Your car is sold at a less price to a person who has low income
Make sure to donate the car to the right charity trust.