Donating a car to charity is a wonderful way to help a charity you believe in. It also allows you to get rid of a vehicle you no longer want and to claim a deduction on your next 1040 that you submit to the IRS. If you’re donating a vehicle in Silver Spring, MD, we’d like to tell you more about the procedure.
Find a Charity
Many donors already have a favorite charity they support. If you don’t have a particular charity in mind, there are many to choose from. You can easily find all the charities in your area from a quick online search. Once you’ve found a charity, check that it’s registered as a 501 (c) (3) nonprofit organization. All charities that are registered must display this on their website.
Contact the Charity
Once you’ve chosen the charity you want to donate the vehicle to, you need to contact them. Charities are always pleased to receive donations, but smaller charities may not be able to receive cars. Receiving vehicles requires additional logistical and administrative support that smaller charities can’t afford. If you would like to donate to a smaller charity, they’ll usually request that you sell the car and then donate the money to them instead.
Complete the Transfer
Once you’ve confirmed that your chosen charity can accept your car, the next step is to complete the transfer of title. Every vehicle has a certificate of title, and this document confirms ownership. To complete the transfer, you fill in the section on the back of the title as the seller, and the charity representative will fill in the section as the buyer.
You and the charity representative will date and sign the form. A Bill of Sale, Form VR-181, must also be completed and signed by both parties. The purchase price on both documents needs to be filled in as “Donation”. If there was a lien on the car, you’ll need to inform the Maryland Motor Vehicle Administration (MMVA) that the lien was discharged.
Preparing Your Deduction
The charity will send you a letter in a few days. This letter will confirm the donation and the value of the donation. The value is dependent on whether the vehicle needs any repairs, or if they are going to sell it. This letter can be sent to the IRS when you complete your next 1040, as it confirms the value of the donation you can deduct.
Helping a charity you believe in makes anyone feel great. Now that you’ve donated your car, it’s time to think about a replacement. Come in and see our amazing range of new Lexus cars or used cars for sale at DARCARS Lexus of Silver Spring.
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