Should I Make the Decision to Donate My Car for Cash or Charity?
Posted by WeBuyCarsToday on January 13th, 2017
Are you wanting to get rid of your old, filthy car that has been sitting outside your house for so many years? Why not consider donating your old car? Car donation provides a wide array of benefits such as being environment friendly through recycling, contributing to charitable institutions, and additional tax incentives. But, you also need to determine “how much my car is worth” because once you have figured out the exact worth of your car, then you can fix a price for it. Following are some really important tips that are important for you to take charge of when you want to donate your car cash or charity.
Donating a used car for cash
One of the biggest benefits of car donation, especially in tough economic times, is receiving cash back or an equivalent incentive for your old car. Car donation gives one the chance to take an end of the year tax deduction. How much can you really write off on your taxes is dependent on the fair market value of your car, up to 0 or the equivalent of the gross selling price. However, because of the huge abuse of the whole system, the current regulations state that owners can no longer use the fair market value of the vehicles more than 0. If you think that your car is worth less than 0, then you can definitely safely deduct the fair market value in the Kelley Blue Book or NADA guides. It all depends on you. You need to pick the method that is suitable for you so that you can do it right.
Right amount of cash for car donation
There is no doubt about the fact that some of the car donation programs offer partial cash payment to donors that are called spiffs. Spiffs are known to be “gifts” that are given by charities in exchange for your donation. All of these cash equipment payments come from the proceeds of the sale and they are typically reserved for high value donations. You must be aware of the fact that this is a win-win proposition because the charity receives a higher contribution for their programs and most importantly, for you, the donor, also reap greater rewards at the same time. Some of the popular spiffs include hotel stays in the popular resort destinations, free membership to exclusive clubs, and discounts on airline tickets. Cash and cash equivalents awarded to donors are now starting to be a popular money-making scheme and this is the reason why a lot of profit driven individuals are taking great advantage of it. You need to make sure when you want to know “how much is my car worth” so that you can set a proper value for it. You must pick the suitable car donation program that is reputable and tax-qualified (non-profit) organization to ignore the trouble with the IRS.
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