You are an ardent lover of children and you see an orphanage near your home and you desire to do something for them. You observe they do not have a vehicle and your used vehicle in great working condition would be of great help. So you decide to donate your car. But remember if you are keen on getting a tax benefit on your donation, then you need to check a few facts before donating to your favorite charity. So if you are qualified for a federal income tax deduction and you want to claim deduction for your car donation firstly the charity should be a qualified organization.
The most common types of charitable organizations are educational, charitable or religious organizations. You may need to check if the organization appears in Publication 78, IRS annual list of charitable organization. You can get it online or even at public libraries. You may also call the IRS Customer account Services division toll free and check the status. One must note that churches, synagogues, mosques temples need not formally register so may not appear in the list but are definitely charities. Always be sure to have the correct name of the charity and also the charity’s address. You must also consider a charity that is keen to answer your questions and give you the right directions. If they give you vague answers as to where the proceeds of your donation would go then it would be wiser to look for another charity. It is very important to select the right charity, so check thoroughly before you decide.
