(Newswire.net – April 30, 2014) — Greenbay, WI –Were you aware that a car donation in Green Bay can be written off for an ample tax deduction? If you do not want to make a car donation in Green Bay because you feel you will be getting nothing out of it, think again. Did you know that the most gracious donors don’t perform altruistic acts completely selflessly, they know they will be getting something in return. A basketball player may donate a basketball court to a community center but he may also make that donation because he knows the press will be there to witness his gracious donation. Before you make a donation of vehicles to charity, here are the top tips any charitable giver needs to know.
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In order for a donation to be eligible for a tax deduction, the donation must be made to a qualified organization. Qualified organizations for tax deductions are ran as a nonprofit and they have a status as a 501(c)(3) charity. You can check on the IRS website to see if the charity you have chosen has the desired 501(c)(3) designation.
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The write-off for your donated car relies on how the organization plans to use it. When you make a donation, the IRS obtains a copy of the receipt and checks where the car donation will be used for the organization. Some charities will use the vehicle to drive their members around while other charities will sell the vehicle at an auction and use the profits from that sell to the support the services and programs the charity holds.
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Did you know there are certain types of donations you cannot deduct. You are not able to deduct donations made to specific individuals, political candidates or organization. If you received something in exchange for your contribution, such as tickets to a show or a sporting event, you can only deduct the amount that exceeds the fair market value (generally agreed upon selling price) of the item.
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One tip is to keep copies of all paperwork accrued during the donation process. Document everything, remember to ask for a formal tax receipt from the charity for your car donation. If the total deduction you are planning to claim for your donated car is over $250, you need some sort of proof for your donation on paper.
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Ask the charity how much they were able to sell the car for. If you do this, you can use the exact price the charity obtains for your car as the amount for your deduction. If the organization sells the vehicle at a discount to a person or if they keep the car for their own internal use, then you are able to claim a deduction for the vehicles fair market value. The fair market value for you vehicle can be found online or in Kellys Blue Book.
Tax deductions are only some of the positive effects a person may experience after donating a vehicle but you may benefit from the good it does for others. A car donation in Green Bay made to the Rawhide charity foundation will benefit at-risk youths and their families. This is a faith based charity in Wisconsin that accepts vehicle donations to keep their programs and counseling services up and running for all those in need. For more information about the Rawhide foundation or to learn more about tax deductions for car donations, go to http://www.rawhide.org/home/donations/green-bay-car-donation-services/.