Things to Know when Donating a Car:

            As you begin your research on available options for donating a car, you will find that there are many companies from which to choose. Having a list of your own criteria is always a good idea so you know exactly what to look for in order to get the results you want or need. For example, if you need the donation to be tax deductible, then you will need to know that the recipient of the vehicle is reliable so that you aren’t faced with penalties or rejection of the deduction later on. You also want to be sure that the company to whom you donate the car is legitimate, and a good way to confirm that information is by visiting the Better Business Bureau web site as well as CharityNavigator.org. These resources will alert you of any complaints or history of wrongdoing on the part of your chosen group.

If you plan to donate to a charity, they should also have their own web site where you can verify two critical pieces of information. The first is determining whether or not the organization is an Official IRS Recognized 501 (c) (3) Charity. This status should be plainly visible in a public format (like a web site) so that you won’t have any unwelcome surprises when you submit your taxes. The second is what percentage of donated revenue actually goes to the organization’s intended recipients. The law does not stipulate a required minimum amount, so beware of charities that do not advertise this information because the actual amount could be as low as 1%. If a charitable organization is truly legitimate, they will want donors to know these two things so it should be relatively easy to find on a web site or in promotional literature.

Another essential part of choosing an organization is the convenience with which they will handle the transaction for you. There should never be any hidden fees or transportation costs to the donor, and you should also look for a group that has simplified the process. Remember, you are donating to them, so the process should be simple, quick and hassle-free. Will they take care of picking up the car? Do you have to be physically present at the time? What will you need to provide? When will you receive the receipt? These are all important questions to ask before you agree to go through with the transaction.

To Donate a Car Online or by Phone, Fax or Mail:

            Donating a car can be as quick and easy as two simple steps that require only minutes of your time. Volunteers of America accepts all cars, trucks, RVs, motorcycles and boats whether they are operational or not. Pick-up is always free and receipts are usually mailed within 24 hours of the completed transfer. At www.voagno.org, you can begin the 2-step process; or email your donation. All you need are the keys and the title and VOAGNO will handle the rest! They also accept car donations by fax, phone, and mail. To donate a car by phone or fax call (504) 525-2179, or toll free at 877-721-4862. To donate a car by mail, simply call the local number above and they will provide the mailing address. Make a difference in someone’s life today!

Planned Giving: Getting Started

When it comes to charity, have you ever found yourself saying, “I wish I could help,”? Even if you are someone who never has free time, or you are not really the ‘hands on’ type, there are still ways to give, and gift planning can be a very rewarding part of your own personal legacy. Everyone wants to know that they’ve accomplished something great and to leave behind a trail of goodwill. Planned giving will give you the satisfaction of knowing that you’ve given someone who is struggling to survive a helping hand.

Once you’ve made the decision to become a donor, you’ll want to find the right charity. To begin with, you’ll want to give to an organization that has some staying power. Fly-by-night schemes are everywhere these days and it’s crucial to know what to look for in a legitimate cause. This can usually be determined with a minor amount of internet research. It’s always a good idea to start by looking at groups that are local because it will allow you to follow up more closely on their activities, but it will also give you the chance to ensure that your donation will go toward helping your neighbors and community. Be sure to look for an agency that is an Official IRS Recognized 501 (c)(3) charity, which should be advertised fairly openly, as this will guarantee that your donation is made securely and also that you will receive the appropriate tax deductions.

Another easy way to find a legitimate organization is by looking at whether or not they openly volunteer to their donors what percentage of their intake goes directly to their recipients. You should know that the law does not require a minimum standard on this percentage in order for a business group to function as a charity. This means that a ‘charitable’ group can have all the right earmarks of legitimacy – such as swanky benefits, testimonials, web sites, etc. – and still only donate as little as 1% of their collections to the targeted population. Charities are also not obligated to offer this information to the public, so beware of any group that minimizes or ignores this important information.

You’ll also want to choose a charity group that offers different giving options, maximum tax deductions, and the right to set up the donation so that it helps a particular group of your choosing, such as veterans or children and families. You should also consider the flexibility of types of donations accepted to ensure a good fit. A good charity should allow you to donate anything from cars or other vehicles to property, artwork, or a monetary bequest. It’s important to know for sure that your chosen organization has made as easy and safe as possible for you to donate, so be sure to ask about procedures. Settling an estate is complicated enough without the added hassle of legal entanglements or petitions later on!

Make a Planned Gift to Volunteers of America

            Since the 1890s, Greater New Orleans Volunteers of America has been providing charitable services to Louisiana in 16 parishes. Volunteers of America accepts planned gifts of all types and amounts, and they will help you structure your gift so that you receive the maximum tax benefits available. Call (504) 482-2130 for more information or visit www.voagno.org and select the “Give A Gift” tab to get started, or just read some of their success stories. Gifts can be made online, by phone, fax or mail, and donations can be anything from stocks or mutual funds to a car to volunteer hours. Start your legacy today!

4 Easy Steps To Profit From Donating Your Vehicle

1)    Choose A 501(c)(3) Charity. Make sure that your chosen charity has the 501(c)(3) public charity status, because donations to most 501(c)(4) charities are not tax deductible. 501(c)(4) organizations are civic leagues and social welfare groups that have the ability to lobby the government, like the Disabled American Veterans and the National Rifle Association. To find out which charities are qualified by the IRS to receive tax-deductible contributions, see IRS Publication 78, Cumulative List of Organizations.

2)    Know How the Charity Will Use Your Car. If the organization you choose will be selling your donated vehicle, you are entitled to a deduction equal to the gross proceeds from the sale, as indicated on the final receipt. This means that you can get a deduction for the amount the car was sold for, NOT how much the car is actually worth. The only exception to this rule is that if the car is sold for less than $500, the donor can apply for a deduction in the amount of either $500 or the fair market value of the car, whichever is less.

3)    Know How Much Your Car’s Worth. As you may have guessed from the last tip, it will be handy to know your car’s fair market value to assess if donation is the best option. In addition, if the charity will be keeping your car for use, making improvements to it, or selling or giving the car directly to a needy person at a value far below fair market value, you may be able to receive a deduction in the amount of the car’s fair market value. This might impact your choice of charity, so know your vehicle’s worth before taking the plunge!

4)    Do Your Paperwork. In order to receive a tax deduction when you donate a car, truck, boat, motorcycle or RV, you must have a written acknowledgement from the charity that they received your gift. This document must contain your name, taxpayer ID, the vehicle ID number, the date of contribution, and a statement that outlines what (if anything) the charity gave you in exchange for the car at the time of donation. In addition, you should itemize the deductions on Schedule A of Form 1040 and include Form 1098-C Contributions of Motor Vehicles, Boats & Airplanes, which should be provided to you by the charity within 30 days of the vehicle’s sale. If your car is worth more than $500, you must also complete IRS Form 8283 Noncash Charitable Contributions and attach that to your taxes.

Ready to Donate your Car?

If you’re looking for a 503(c)(3) charity in the Gulf Coast region that will gladly accept your donated car, consider the Greater New Orleans Volunteers of America. To find out more about how you can provide a helping hand to kids, families, seniors and veterans in sixteen Louisiana parishes, visit their website to donate your car, or call (504) 525-2179 today.