Home
A Better Self From The Inside Out
Academy Sports
Acai Berry
Acid Reflux
Acne
Adopting A Dog
Adoption
Adsense Marketing
Aerobics
Affiliate Marketing
Aikido
Air Ambulance
Air Purifiers
Allergies
Alone No More
Anger
Annuities
Anti-Aging Treatment
Anxiety
Anxiety Panic Attacks
Aquariums
Aromatherapy
Art Collection
Arthritis
Ask A Girl Out
Astrology
Attention Defecit Disorder
Attitude
ATV
Autism
Auto Insurance
Auto Leasing
Auto Sounds System
Baby
Baby Boomer Health Plan
Baby Boomers
Baby Care
Baby Monitors
Baby Shower Master Planner
Back Pain
Backlink Basics
Backyard Ideas
Bad Breath
Bass Fishing Guaranteed Catch
Be A Freelancer From Home
Be More Decisive
Beauty
Beauty Secrets
Beekeeping
Before You Rent
Best Marketing Strategies
Biking
Bird Watching
Birth Control
Blogging
Body Building
Body Detox
Body Fitness
Body Language
Bonsai Trees
Book Proposal Magic
Borrowing Freedom
Bounty Hunter Cash
Bread Making
Budget Travel
Build Products That Run Businesses
Building Inner Strength And Integrity
Bullying
Business Branding
Business Coaching
Business Credit
Business Ideas
Business Schools
Butterflies
Buying And Maintaining A Car
Cake Decorating
Cancer Prevention
Candle Making
Candles
Car Clubs
Car Donation
Car Insurance
Car Rental
Car Shows
Car Stereo
Cardio Exercise Equipment
Cardio Workouts
Career Planning
Caring For Your Dog
Caring For Your Newborn
Carpentry Career
Cat Care
Cat Training
Catch A Fish
Cell Phone
Child Safety Online
Chinchillas
Chinese Herbal Medicine
Chiropractic Care
Chiropractors
Christian Stories for Children & Adults
Christmas Planning
Christmas Season
Christmas Traditions
Collectible Dolls
Colon Cleansing
Computer Makeover
Computer Programming
Computer Protection Essentials
Conquering Cellulite
Contact
Container Gardening Secrets
Convert DVD to Ipod Video
Cooking
Coon Cats
Cosmetic Dentistry
Cosmetic Surgery
Coupon Codes
Cowboy Rich
Craigslist
Creating A Greenhouse Wonderland
Creating an Online Business
Creative Thinking
Credit
Credit Cards
Credit Score
Credit Score Booster
Criminal Defense Lawyer
Cyber Security
Dance
Data Entry
Dating Personalities
Dating Services
Debt Management
Deer Hunting
Deforestation
Depression
Detox Diet
Diet and Weight Loss
Diet Tips
Digital Camera
Distance Running
DJ
Dog Breeding
Dog Breeds
Dog Care
Dog Diet
Dog Obedience
Dog Seperation Anxiety
Dog Walking Riches
Domain Names
Dominican Republic Holiday
Drop 10
Dyslexia
Eagles
Eclectus Parrot
Economic Recession
Editorial Services
Electric Bike
Electric Cars
Embroidery
Emergency Quick Cash
Energy Conservation
England Vacation
Entrepreneur
Entrepreneurship
Essential Oils
Extend Your Ipod Battery
Facebook Marketing
Family Budget
Family Camping Trip
Family History Search
Family Resolutions
Fashion
Fashion School
Fashion Tips
Fast Cash
Feng Shui
Ferrets
Finance Career
Financial Empowerment
Financial Intelligence For Wealth Building
Financial Resolution Secrets
Firefighter
Fire Safety
First Aid Training
Fitness Resolution Fortress
Fitness Tips
Flatten Those Abs
Food To Warm You Up
Foreclosure Short Sales
Forex
Forex Trading Manual
Forex Trading Superstar
Fuel Economy Products And Scams
Fuel Efficiency Fanatic
Fuel Efficient Vehicles
Gain Weight
Gambling
Gardening Tips
Gas Saving Devices
Gas Saving Vehicles
Gastric Bypass
Generate Cash Today
Get Fit Get Healthy
Get Organized
Get The Right Job
Get Your Ex Back
Getting Your Marriage Off The Rocks
Global Warming
Glycemic
Goats
Going Green
Golf Swing
Graphic Design
Greece Vacation
Guide to Public Speaking
Guitar
Hair Transplant
Halloween
Hangover
Happily Ever After
Happiness
HCG Diet System
Health Issues
Healthy Dating
Healthy Foods
Helping Others
Hemorrhoids
Herbs
Holidays
Holistic Health Tips
Home Automation
Home Biz Time And Money Savers
Home Brewing
Home Business Manager
Home Business Quick Start
Home Improvement
Home Remedies
Home Security
Home Theater
Homemade Wine
Hoodia Diet
Horse Training
Hot Diet
Hot Tubs
House Buyers Boot Camp
Household Budget Planning
How to Create an Organized Home
How To Start A Church
Hybrid Vehicle Revolution
Hydroponic Garden
Hypermiling
Hyperpigmentation
Identify Business Opportunities
Improve Your Memory
India
Indispensable Internet Marketing
Insomnia
Internet Marketing Personal Development
iPhone Applications
iphones
Jamaica Vacations
Jiu Jitsu
Journalism
Karaoke
Kart Racing
Keeping Ducks
Kids Birthday Parties
Kite Surfing
Knitting
Lacrosse
Landscape Architect
Lasik Surgery
Law of Attraction
Lawn Care
Lean Manufacturing
Learn Italian
Learn Something New
Learn To Draw
Leave A Legacy
Legal Help
Lemon Law
Life Coach
List Building
Living Green
Living On A Meager Budget
Living Wills
Locksmiths
Lose Ten Pounds
Loving Life
Lower Blood Sugar
Lower Your Energy Costs
Lymphoma
Magazine Publishing
Magic Tricks
Making Chocolate
Malware Protection And Removal
Managing Your Money
Marine Biology
Marketing Strategies I
Marketing Your Business
Martial Arts
Massage Therapy
Maui Vacation
Mauritius Vacation
Medical Career
Medical Tourism
Meditation
Membership Website
Mental Health
Mentoring
Mobile Phone Profits
Mole Removal
Money Saving Cooking Tips
Mortgage Refinancing
Most Haunted
Natural Dog Food
Natural Weight Loss
Network Marketing
Networking and Social Dominance
New York
New York Stock Exchange
Nintendo Wii
Nursing Career
Offline Marketing
Online Dating The Easy Way
Online Degree
Organic Gardening
Organization
Orient Express
Orlando Vacation
Overcome Shyness
Overcoming Loneliness
Paintball
Painting
Painting Professionally
Panic Attacks
Parachuting
Paralegal
Parenting
Parkinson's Disease
Party Favors
Patent
Payday Loans
PDAs
Pet Birds
Pet Insurance
Photoshop
Piano
Pilots License
Planning The Perfect Party
Porsche
Postcard Marketing
Power Tools
Pregnancy Nutrition
Pregnancy Tips
Premium Bonds
Productivity
Public Records
Public Speaking
Public Speaking Tips
Publish On Amazon Kindle For Cash
Quilting
Racquetball
Real Estate Investing
Real Estate Leads
Recipe For Riches
Reiki
Renewable Energy
Resolute Set Go
Resolution Retention
Resume Writing Tips
Retirement
Running
Running Tips
RVing
Satellite Radio
Save Money
Save Money on Groceries
Save Your Marriage
Scrapbooking
Search Engine Optimization
Self Publishing
Sell Anything
SEO
Site Map
Site Map (A)
Site Map (B)
Site Map (C)
Site Map (D)
Site Map (E)
Site Map (F)
Site Map (G)
Site Map (H)
Site Map (I)
Site Map (J)
Site Map (K)
Site Map (L)
Site Map (M)
Site Map (N)
Site Map (O)
Site Map (P)
Site Map (Q)
Site Map (R)
Site Map (S)
Site Map (T)
Site Map (U)
Site Map (V)
Site Map (W)
Site Map (X)
Site Map (Y)
Site Map (Z)
Six Pack Abs
Skiing
Skin Cancer
Sleep Apnea
Slim Down
Smoking Drinking and Gambling
Snoring
So You're Getting Married
So You're Having A Baby
Solar Energy
Solving Problems
Speech Therapy
Speed Boats
Speed Reading
Spiritual
Spiritual Resolution
Sponsor System
Sports Coaching
Spy Gadgets
Stamp Collecting
Standup Comedy
Starting A Business
Starting A Small Business
Staying Motivated
Staying Young
Stock Trading
Stop Smoking
Stress and Anxiety
Stress Busters for Moms
Stress Management
Striking The Balance
Student Loans
Stuttering
Subliminal
Sunglasses
Surviving the Wild Outdoors
Swimming
Swine Flu
Tax Attorney
Teeth Care
Thanksgiving
The Art of Wood Working
The Internet Empire
The Online Copyright Handbook
Timeshare
Total Recall
Travel Insurance
Travel The World On A Budget
Traveler
Traveling Nurse
Truck Accessories
Turbo Traffic
Twitter
Understanding Your Cat
Vacation Spots
Vegan Cooking
Vegan Life
Vegetarian
Vegetarian Lifestyle
Venice in Italy
Venture Capital
Video Product Creation
Video Streaming
Vintage Cars
Vintage Posters
Vision Health
Vitamins
Waste Management
Water to Gas
WEBKINZ
Wedding Video
Weddings
Weight Lifting
Weight Loss
Weight Loss Domination
Wine and Spirits
Wine Tasting
Winterizing Your Home
Woodworking
Work at Home
Workplace Safety
Worm Farming
Xbox
Yoga Basics Plus
Yorkshire Terrier
Your Best Year Ever
Your Hot New Career
Zen and You
50K Plus Jobs
401k Plan Options

Car Donation 
Sunday, 15 June 2008

For many years now, charitable non-profit organizations (NPOs) have been taking donations of household, durable, non-cash goods as well as used car donation.  This practice was adopted to increase the base of those who could be counted on for charitable gift giving to include the middle class and has been a smashing success.

 

However, in addition to used car donation, which may be the most commonly advertised type of giving, there are plenty of still valuable goods in most people's homes, waiting to be put to a more charitable use.    For instance, just about anything that isn't consumable or appears made to last for more than a few years is perfect for donation.

 

Consider electronic goods, for instance.  They are very similar to used car donation in that many times people don't bother to donate them until they are well into obsolescence or broken beyond reasonable repair.  Even though most charitable NPOs regularly request only working items, that is what they end up with most times. 

 

As with used car donation, there are companies with an educational mission, who will teach people how to rebuild and refurbish older electronic goods (especially computers), teach them how to use open source software with the newly useful machines and then send them home with a fully loaded and functional computer.

 

And again, just like used car donation, this model serves only a small segment of the used computer marketplace, with most being sold to scrap yards in China to have their gold removed.  The actual value for people in your community is quite low in this scheme, so if charitable giving in your goal, it would be a good idea to check into such programs when you're getting ready to make your donation. 

 

Though many of the strict regulations that pertain to used car donation don't apply in quite the same way to some other types of donated goods, recent changes have tightened up the rules for other non-cash donations that are likely to be deducted at a rate far higher than the condition-adjusted value.

 

This has the effect of decreasing the amount of money that one can claim from clothing and household goods (including furniture) in poor condition just as a used car donation of a running car doesn't even warrant the "poor" rating in the Kelley Blue Book.  There are even now regulations on the amount and condition of donation taxidermy.

 

Property was the largest component of non-cash donation to charity in 2002, right after stocks.  Property is generally required to be professionally and independently appraised before it may be deducted as a charitable gift.

 

Other non-cash items that benefit charity in addition to used car donation, include art of whatever questionable taste you choose, as long as it's in good or better condition.  Intellectual properties may also be donated, as may securities and inventories.

 

If there is any way someone can make money off something you've donated, odds are, they will.  It might be a good idea to talk to your tax preparer or CPA about whether your donation will be fully deductible.  If not, there's probably a way that it could be made to work.  Find out.

 

If you'll be claiming more than $500,000 in charitable deductions for a given year, you'll automatically have to file some special paperwork.  Generally, just as with used car donation, the more you hope to claim as deduction for a given item or for a great many items, the more documentation you'll need to produce to back up your claims and the more likely the IRS is to ask you about it.

 

And just as the changes that impacted used car donation in 2005, it is unclear what effect this change will have.  Will people continue to donate items without tax benefit or will it leave that many fewer resources for the poor and disadvantaged?  It is unclear if charities themselves have been negatively affected, much less the communities they serve.

POSTED BY: Rich Lanning AT 03:11 pm   |  Permalink   |  0 Comments  |  E-mail this
Sunday, 15 June 2008

Since just about everything can be done online in some form or another, it's not surprising that you can use online car donation services to get rid of an unwanted car and secure what might be a significant tax deduction.  However, it's a good idea to be careful about just what sort of company you let handle this transaction for you.

 

Even good charities can let bad companies represent them.  This is sometimes the result of someone on the side of the charity not looking to closely into the qualifications of those actually doing the tow work and the paper work involved with selling a vehicle and reporting the proceeds accurately to the charity and yourself.  Online car donation almost always uses such services, even if the

 

On the other hand, the problem may be that the charity hired a service that facilities pick up and delivery with a network of independent contractors.  This does, of course, decrease the amount the charity will receive as a percentage of the car's sale price at wholesale auction.  However, it does guarantee that you'll be able to call a single number to initiate a donation no matter where you live through online car donation.

 

Regardless, you want to make sure there's something to guarantee the online car donation service you choose is at least legitimate.  For starters, it should say what the charity is that you're donating to.  If this isn't readily apparent, a certain amount of this may be bad web design, though this is a common tactic used by companies that are actually illegal according to Federal law.

 

It is your duty when using online car donation services to check and see not only that they list a charity, but also make it possible for you to check up on the non-profit, exempt status with the IRS.  Thankfully, you can look up tax ID numbers from the IRS website.  Donations made to less than real non-profit organization (NPOs) are not allowable tax deductions and can even result in an audit.

 

Once you've verified that the NPO in question is real, you may then donate to your hart's content, though the amount of a deduction eventually garnered for the donation will often be less from an online car donation site than you might get from contacting a local charity that can use the vehicle directly.

 

Another thing you'll want to keep an eye out for is an online car donation that makes you responsible for any charges.  Since you're doing the donation, there's no reason why you should have to deal with any sort of fees or charges.  Some unscrupulous companies will present donors with a destination charge, though there's not a reason to pay such a charge either, especially if you find out your car is being sold rather than going out of state

 

Online auto donation has certainly come along way since the early days of dial up bulletin boards.  The industry got so large in the early 'aughts that the General Accounting Office felt compelled to investigate the practice.  Resultant legislation has taken many of the smaller players out of the industry, though it continues to be lucrative enough.

 

Regardless, they're not going anywhere, anytime soon.  A simple search for "online car donation" in your favorite search engine should return about a million pages of donation opportunities and information on services that can help you get rid of your extra vehicle.

 

It is good to know that if a tax donation isn't very important to you, there are online car donation services that will take care of the hauling away and paperwork associated with the change of ownership as well as the sales and paperwork associated with the actual donation.  Even if your car is running, it will be towed from its current location.

 

You shouldn't assume you'd get a hefty donation from your online car donation.  Often times, the sale price at a wholesale auction is so poor that your charity may not benefit very much at all.  Be sure that the charity in question isn't responsible if money is lost on the transaction, especially if you're donating a car that's not in very good shape.

POSTED BY: Rich Lanning AT 03:09 pm   |  Permalink   |  E-mail this
Sunday, 15 June 2008

According to the General Accounting Office's (GAO) 2003 report to the Senate Committee on Finance, the incidences of miss reporting from car donation programs was out of control.  In 2005, some changes were made to the rules that govern car donations and the subsequent deductions that are allowed. 

 

However, the report also showed that an alarming 95% of third-party agents that facilitated the donations for perfectly legitimate charities and non-profit organizations (NPOs) were for-profit organizations that ate up as much as 70% (and sometimes even more) of the profits from the sale of donated automobiles.  This means that a very paltry amount of the proceeds from such sales were actually reaching the charities.

 

Since the 2005 changes took effect, the previously very lucrative business of selling donated cars for IRS authorized charities that didn't have in-house resources for dealing with automotive donations, has become somewhat less profitable.  As such, the proportion of third-party car donation programs that operates for profit has declined.

 

That doesn't mean you don't have to be diligent about the type of car donation programs you look into when deciding to donate a used car to charity.  There are still several states (many of them in the Western United States) that don't require such car donation programs to register with the state Attorney General's office.  If you live in one of these states, you'll have to be very careful about the ultimate use of your car, since the amount you'll be able to legally deduct without attracting the attention of auditors is tied its use.

 

For starters, you should check all car donation programs to see that they are actually representing charities and non-profits that are sanctioned as charitable organizations by the IRS.  If in doubt, ask someone at the charity in question how their relationship with the third-party agent works.  If they are not in control of the program, there could be room for citing exorbitant overhead costs, despite increased regulation of such overhead costs since 2005.

 

Car donation programs should be able to give you a good idea of how the donated car will ultimately be used.  Your benefit in the form of allowed deductions will be higher if the car is to be used by the charity itself (such as is the case with Meals on Wheels) or given to a needy family that needs reliable transportation.  If this involves fixing the car up before being given away, the value of the repaired car may be deducted. 

 

It also behooves a donor to inquire as to how the vehicle will be rehabilitated.  Car donation programs that are known for performing such repairs as part of an educational mission will make it especially easy for you to claim the fair market value of the car, even if it is eventually sold to someone (such as one of those needy families) at a deeply discounted rate.

 

If one of the car donation programs you've chosen doesn't seem to be forthcoming with answers to your questions, check with the state Attorney General or other organization that is responsible for monitoring such agents.  Even in a state without such oversight, some private organizations, such as the Better Business Bureau, have their own lists of reputable car donation programs that may be better able to serve your charitable desires.  Indeed, this might be the best place to begin your search.

 

It is also useful to note that all car donation programs are required to give you a receipt within 30 days of picking up your car, though the receipt of sale is what you will actually use to value your donated automobile for deduction purposes.  If the charity in question will be spending some time fixing the car up or using it for their own charitable purposes, you should still expect some paperwork to that effect.  If you don't get it within a month of your car donation, you should call to check up on the status of your receipt.

 

It has become far easier to check on the charitable mission of car donation programs in recent years.  A little bit of homework on your part will help you avoid unscrupulous car donation programs that have little, if anything, to do with the charities they claim to represent.  Check twice and donate once.

POSTED BY: Rich Lanning AT 03:07 pm   |  Permalink   |  E-mail this
Sunday, 15 June 2008

The good news is that securing the correct paperwork when you donate an auto for tax deduction purposes should be simple.  In fact, it should be automatic, but in some cases, you may have to remind the people who are handling your donation their obligations under the law.  Since 2005, it has become far more straightforward to donate autos.  Tax deduction levees, however, are a bit less for most donations than they were before then. 

 

As such, it's imperative that you not only secure your receipt of transaction but also find out exactly what has happened to your vehicle.  If it's being used or fixed up for use, even if that includes a sale in the first two years after you've decided to donate.  Auto tax deductions are now very closely tied to the ultimate use of the vehicle, so those which are sold wholesale within the first few months, without an intervening use (other than paperweight or small greenhouse), can only use that sale price as the deduction.

 

Furthermore, the amount that actually goes to the approved charity in question is the amount you must not exceed when preparing your itemized deduction at the end of the year.  It's in your best interest to make sure that's the figure you've gotten if there's a third-party agent that is facilitating the transactions for the charity in question.  When you donate an auto, tax deduction concerns are such that if anything is wrong at all you risk loosing the whole deduction and attracting the attention of an auditor.

 

Thankfully, not only are there guidelines for what documents you should have, but also time-frames in which they must be sent to you.  For instance, when you actually turn over the title and donate the auto, tax deduction paperwork should be set in motion.  This means that if the intention of the agency is to turn around and sell as soon as you donate the auto, tax deduction paperwork should be forthcoming within 30 days of the impending sale.

 

Such sales usually take place within the first week or so after the vehicle is picked up.  So, if it's been two months and you've not heard anything, be sure and call the charity or third-party agent to find out what has happened with your car.  Again, they are required to tell you their plans for your donated auto, a tax deduction range they expect (given that use) and when you should expect your paperwork in the mail.

 

If, on the other hand, you find out that your car is in good enough shape to warrant repair and use by a needy person or family served by the charity's mission, there is not bill of sale to base your donated auto tax deduction calculation upon.  In this case, you should be given a notice within 30 days of this decision that indicates this practical use of the vehicle as well as the appraised value. 

 

If the car will be worth more than $5,000 this appraisal should come from an independent appraisal service (arranged by the charity or third-party agent) and be provided with a signed Form 8283, with a completed section B.

 

You should expect Form 8283 (section A) for any value between $500 and $4999.99 earned for your donated auto.  Tax deduction paperwork then is simply a matter of filing these documents with your Form 1040 Schedule A itemized deduction worksheet.

 

If at any time you fell you're getting the run around from any of the players in this game, a call to your State's Attorney General, Secretary of State Office or the Better Business Bureau are good places to start an investigation of a potentially fraudulent donation service.  If you've asked on more than one occasion for documents and they don't arrive within the month, then you are officially getting jerked around with regard to your donated auto. 

 

Tax deductions are not a big deal now that there is an existing framework for getting the documentation you need.  Having a few pictures of the car as you're getting ready to donate it are also handy.  It never hurts to keep a few in your folder just in case.

POSTED BY: Rich Lanning AT 03:04 pm   |  Permalink   |  E-mail this
Sunday, 15 June 2008

Though many people consider the Internal Revenue Service (IRS) to be their own personal nemesis, given the ever-increasing cut of income that's taken every year, the are some car donation charities FAQs it is to everyone's benefit you should be aware of, as a taxpayer.  To that end, the IRS has gone to great length to make their policies easily available in many different ways, some of which are generally more effective than others.

 

Regardless of how one gets their information about car donation, charities FAQs have been a matter of public discussion ever since the somewhat shady nature of vehicle donation was made apparent in the early 'aughts.  When the General Accounting Office (GAO) issued their groundbreaking report to the US Senate in late 2003 (as a result of public outcry and pressure from states), not even the IRS or Congressional Finance Committees seemed to know the rules and regulations regarding car donation charities. 

 

FAQs have since been adjusted according to the new rules that made it far harder when for-profit companies tried to use legitimate charitable operations to line their own pockets.  Now that many of these loopholes have been addressed, your odds of making a charitable automobile donation that you can feel good about are better than ever.

 

Among the most often asked car donation charities FAQs is how one goes about selecting a good, worthwhile charity.  They may contact such a charity immediately, or look up an auto donation service that serves charities they support.  The IRS would generally prefer you donate directly to keep potentially obfuscating the amounts actually going to the charities in question.

 

Of course, the IRS would also like to file the correct paperwork, since even a friendlier IRS still has a slavish devotion to filling out standardized forms.  In the case of auto donations greater than $500, a donor is required to file a Form 8283, section A.  This can be downloaded from the IRS website and should be signed by both the donor and the charity in question.  Many charities will happily supply you with such a form - it is in your best interest to find out if this will be taken care of for you before you sit down to do your taxes at the end of the year. 

 

Another important car donation charity FAQ is that if the donation is worth more than $5,000 (whether the vehicle is to used by the charity or sold), section B of Form 8283 must be filled out and attached to your deductions form.  Additionally, you will also need to supply an independent appraisal with your return for such high-end donations.  This can be arranged by the charity or yourself.  The cost of such an appraisal may or may not be considered part of the donation - check with your CPA to make sure what the current regulations are given your exact circumstances.

 

When dealing with car donation and charities, FAQs pertaining to how you will go about itemizing your deductions govern how such a donation will actually benefit you and the charity in question.  For instance, it is wise to consider the extra effort (or money in the case of paying a professional tax preparer) is involved in switching to itemized deductions.  Some people are actually better served buy taking the standardized deduction.  You should balance these potential expenses against the actual amount your tax burden will actually be decreased.  In most tax brackets, this represents about a third of the value of your car donation.  Charities and FAQs pertaining to car donation should clearly point out that deductions are from one's net income rather than the amount of tax owed.

 

When considering the actual tax benefit of your car donation, charities FAQ usually do a good job of pointing out the limitations of the value you can claim as a deduction, as well as their own status as an IRS sanctioned non-profit organization.  In the case of charities that have a limited or dubious mission, you could find your deduction challenged as going to a less-than-charitable organization.  Do your own homework and verify the validity of any charity you choose to donate to.

 

And remember, all the car donation charities FAQs in the world won't protect you if you take an active role in defrauding the federal government.  Honesty is the best policy in all dealings with the IRS.

POSTED BY: Rich Lanning AT 03:02 pm   |  Permalink   |  E-mail this
Sunday, 15 June 2008

When the US General Accounting Office (GAO) issued its landmark report on charitable vehicle donation to the Senate Committee on Finance in November of 2003, over 4,000 distinct charity and non-profit organizations (NPOs) were accepting vehicular donations.  Though most of these used third-party, for-profit facilitating agents at the time, changes in tax laws for the 2005 tax season ushered in a new self-sufficiency among a smaller class of NPOs, often more closely geared towards benefiting from charitable vehicle donations.

 

Consider the very large field that benefited in varying degrees from the glory days of charitable vehicle donation, before government regulation stepped in and made it harder for people to take unreasonable deductions that varied greatly from the actual amount that charitable organizations actually received.  Though a large part of this had to do with some vagary in how the law was written, it was also a consequence of a large segment of often less-than-scrupulous third-party agents who acted, supposedly, on behalf of the charities in question.

 

Now that one can only deduct the amount their charitable vehicle donation actually nets the IRS-approved charity, many of these third party players have left the game seeking easier marks elsewhere.  This means that many charities that relied on charitable vehicle donation for more than a small percentage of their annual budget were forced to either handle their own donations or make much stricter agreements with the companies that retrieved the vehicles for them.

 

As such, many of the charities that once accepted charitable vehicle donations were interested only in the money they were able to get from sales.  These include many of the more commonly known and nationally represented charities such as Easter Seals, and the Lung Association.  Indeed, medical related funds are very common types of charities that accept monies from donated cars rather than the cars themselves.

 

Some NPOs that accept charitable vehicle donation do so in an effort to further aspects of their social mission that include donating repaired vehicles to needy residents or using them to create a fleet of vehicles to shuttle old folks to their doctor appointments.  Sometimes the receipt of a charitable vehicle donation is tied to taking classes learning how to fix and maintain such a car, should anything go wrong (which it undoubtedly go haywire in the span of a few years given the used nature of your donation). 

 

Like Habitat for Humanity, some charitable vehicle donation projects make part of the charitable process dependent upon the recipients and other members of the community working together to actually make the donation something useful.  Such charities with an educational and uplift mission don't have to be schools, though other types of education are usually involved.  In this case, your charitable vehicle donation has the best chance of actually becoming a running and useful gift.

 

Another type of charity that can use your charitable vehicle donation doesn't have the facilities to fix vehicles, but may have a need for a donated vehicle.  For instance, some schools have use for a vehicle temporarily, such as when the sports teams are traveling, but as soon as they're back for the year, the car may be sold to the highest bidder.  This can include colleges and adult education, too.

 

One surprisingly eager recipient of charitable vehicle donation is the local police and fire department.  This is one area where a boat may actually be likely to be used for professional purposes, such as in the case of search and rescue missions.  Most police and fire departments are always on the lookout for a car that runs well enough to be used right away.

 

The ideal charity is one that can use your charitable vehicle donation directly rather than selling it as quickly as possible at auction.  In the case of educational missions, a car with few dents and mechanical problems can prove invaluable to those in need, even if your charitable vehicle donation is in pretty rough shape when received. 

POSTED BY: Rich Lanning AT 03:01 pm   |  Permalink   |  E-mail this
Sunday, 15 June 2008

Not all car donation deductions are created equal - there are even cases where donating an auto in good faith can actually increase your tax owed under certain circumstances.  Like anything else involving the IRS, the burden of proof is upon you, so the more information and documentation you have to back up your car donation deduction, the better. 

 

Thankfully, just as rules have tightened up for donors, the onus of documenting the ultimate use or destination of a donated car rests with the charity receiving your car donation.  Deductions are now tied to the ultimate use of the vehicle.  So, if the charity you choose or, the third-party (often for-profit organization) that acts as an intermediary between yourself and said charity, sells your car at a loss, you'd have a hard time claiming fair market value for such a donation.  The charity is required to give you a receipt stating the use of the vehicle within 30 days of donation, whether it's actually met its final fate yet or not.  If it is used and later sold, you'll receive a new receipt outlining this use, too.

 

On the other hand, if the charity you choose has a mission that includes using the donated vehicle to further their mission or they sell it at a loss to a needy family, you may still claim the "fair market value."  This may, however, get your return some unwanted attention that you may not welcome for other reasons.  If this doesn't sound like a good idea to you, it may be wise to consider something other than car donation for deduction purposes.

 

Indeed, it pays to be careful of who is receiving your donated auto.  This is especially true in the case of car donations and deductions taken from charities that are not recognized as non-profit organizations by the IRS.  This is easily checked, and doing so can save you a great deal of heartache later.  Charities are required to provide you with information regarding their non-profit status with the IRS and tax ID numbers you can check yourself with the IRS website.

 

Perhaps the most common happenstance where it doesn't pay to donate a car is when the rest of your allowable deductions for a given year, when added to the car donation deduction, add up to less than the standard deduction allowed you.  Of course, this differs depending upon how you file. 

 

For instance, if you file as a head of household you'll have to come up with nearly $2,500 more than if you'd filed as single or married filing separately to reach that standard deduction amount.  This can be difficult for those who are simply working for a living as opposed to those who are self-employed. 

 

It is also useful to note that the higher your tax bracket, the less a deduction will actually take off your total tax burden.  This is because deductions are taken from your net income, not the total tax as many suppose.  As such, legitimate car donation deductions are typically worth about a third after figuring out taxes, less if you're in a higher tax bracket.

 

That said, in the case of a high value car donation, deductions could make the difference between paying in a higher and lower tax bracket.  This can have important implications on your total tax burden that far outstrip the actual value of the car donation.  Deductions may, on the other hand, have little or no effect on your final income bracket. 

 

It's always best to check and see how close you are to the edge of a more favorable income bracket near the end of a given year.  Since you're allowed to make donations up until the 31st of December, as long as you get a certificate of receipt, it doesn't even matter if the car is hauled away until the next year, as long as you have a piece of paper stating that the initial transaction occurred before the 31st.

 

However, the regulations that govern how car donation deductions can be valued have seriously impacted the once booming market of car donation.  Deductions have fallen sharply as well, and it is estimated that the IRS is now saving more than half a billion dollars per year in reclaimed revenues.  Aren't you glad you could help?  You should be if your car donation deduction is actually a liability under the new rules.

POSTED BY: Rich Lanning AT 02:58 pm   |  Permalink   |  E-mail this
Sunday, 15 June 2008

With the sweeping legislation that caused a steep decline in the amount of money represented by auto donation, boat donation has also suffered a similar loss due to the plugging of a loop hole that was benefiting everyone except the federal government and the charities themselves.  However, there are still perfectly legitimate and far more efficient ways to use boat donation to benefit your favorite charity if that is your motivation.

 

In the past, one could donate a boat, RV, motorcycle, trailer or just about any type of vehicle or appreciated object to a third-party agent that would handle the title transfer and sale.  Such boat donations were almost always destined for the wholesale market, as it was faster and cheaper to get a small profit as it was all profit for the third-party agent since very little paperwork or oversight was required in such a low-end market.

 

By 2005, the rules that had been allowing for-profit organizations to charge exorbitant fees for their services, filing only the most minimal of paperwork and claiming as much as 80% of the wholesale value in fees to the charity, changed.  As if by magic, those for-profit companies that legitimate charities had relied upon started pulling out of this now less lucrative market that was now asking for itemized statements of expenses and far stricter bookkeeping.

 

There have always existed non-profit organizations (NPOs) that took a more efficient approach to boat donation and handled the sale of watercraft to private parties themselves.  Under current tax laws, this means that boat donations in excess of $500 are valued at the amount they're sold for.  As such, the deduction from your boat donation depends heavily upon how much effort is put into the sale.  Charities that have always practiced their own high value sales have been well-positioned to take advantage of the cars still being donated.

 

Often, however, the boats offered up for sale from the boat donation market are not in particularly good shape.  This was how even perfectly legitimate uses of boat donation were actually cheating the IRS (and eventually many of the programs and services that rely upon federal funding) out of millions every year.  When even a "poor" value was taken from an appraisal book or website, this value wasn't' a good representation of most boat donations.  Even a boat in "poor" shape still describes one that reliably holds water and not all boat donations could say that.

 

On the other end of the spectrum, boats and yachts that are worth more than $5,000 are subject independent appraisal when they're part of a boat donation.  This appraisal should jibe with the amount the boat is eventually sold for.  If not, both the charitable giver and the selling organization open themselves up to further investigation by federal officials.

 

Another complication with high value boat donation is the so-called "50% rule."  According to this stipulation, you are only allowed to claim 50% of your income in charitable donation in any given year.  So, if you don't make very much money but inherited a large boat, you may have to sell it yourself and make individual contributions from that money rather than giving the whole boat to charity.

 

Charitable NPO exceptions to this include educational organizations that take at risk children on fishing trips or help instruct a college class in bass fishing.  As improbable as it sounds, a boat donated to the local police department for finding drowning victims is also an accepted type of direct donation. 

 

It is often a matter of personal taste when giving away an old boat (rather than selling it yourself), especially one that isn't in very good shape.  You may have to consider whether it's worth your while to itemize your tax return for the deductible value of a boat that was only fit for scrap metal. 

 

Often mid- to lower income individuals and families take standard deductions anyhow.  As such, donating a boat that isn't in very good shape is less attractive than recycling options that pay off in hotel vouchers or cruise ship coupons rather than making pretenses about tax deductions from boat donation.

 

Caution is the new rule of law with boat donation.  Contact your favorite charity and ask them how they handle boat donations before you make a decision. 

POSTED BY: Rich Lanning AT 02:56 pm   |  Permalink   |  E-mail this
Sunday, 15 June 2008

Individuals aren't the only ones who can reap the potentially manifold benefits of taking a valuable tax cut after participating in a charity car donation program.  Businesses that operate a legitimate fleet operation can get rid of unwanted, older and high mileage vehicles and be in a good position to reap the highest possible "fair value" deduction that is allowed under current charity car donation rules.  Of course, since this is a business return we're talking about, there are special rules that accompany such a charitable contribution.

 

For starters, a business that runs (and presumably maintains a fleet) are in a position to donate time and labor to a vehicle donation program - not just used vehicles.  Valuing such service on your tax returns is tricky at best and is best handled by a CPA.  You should keep strict records of all interactions with the charity.  Car donation can be part of a total charitable package that can help greatly with end of year tax evaluation, especially if the business is teetering on the edge of a higher tax bracket.

 

Also, the so-called "50% rule" that applies to private individuals, limiting their allowable deductions to less than 50% of their taxable income, differs for businesses.  Generally, 30% is a reasonable self-imposed limit that will keep the auditors at bay.

 

How deductions are taken from your return also varies quite a bit by the type of business you're registered as and whether you file quarterly or annually.  Again, talking to your accountant about the possibility of taking a donation rather than selling fleet vehicles on the open market is usually a stop-gap solution to a higher than usual tax burden as calculated for quarterly returns.

 

Of course, the flip side of this coin is when individual charity car donations are destined to become part of an institutional fleet, such as those employed by colleges and universities.  These legal fleets are very likely to be maintained properly by trained mechanics, making it very likely that the individual donor will be able to take the "fair market value" deduction for a vehicle that is seeing fair market use rather than low-end resale for cash. 

 

Other than the potentially high value of fleet cars that are donated and the extra concern of getting an independent appraisal for vehicles that will garner over $5,000 in legitimate deductions, the process is very much the same as private party charity car donations.  Indeed, just like private parties, one is required to use the actual value of the vehicle to the charity in question. 

 

Since fleet vehicles tend to be in good repair, they are very likely to be used as is rather than sold at auction.  Charities know a good thing and a relatively late model vehicle in good working order to be received, as a charity car donation is a rare thing. 

 

As the owner of fleet vehicles ready for charity car donation, you can generally be assured that if you choose a non-profit, charitable organization with a mission to provide vehicular transportation to receive your donation, the odds are pretty good you'll be able to claim a full "Private Party Values" from the Kelly Blue Book, depending upon the specific condition of your vehicles. 

 

To make such a deduction claim from your legitimate charity car donations, be sure to take good pictures of the donated cars, just in case it ever comes to an audit.  If you're prepared, you have a good chance of fighting such intrusions off without problem as long as you have the correct documentation. 

 

Be sure to save every single receipt you receive from a charity car donation organization, no matter who is running it.  Often you'll get one receipt from the actual transfer of title, and then in the next month or so, either a bill of sale or a record indicating what ultimate use your charity car donation was put to.  Again, it's always best to keep your business accountant fully versed as to what you plan to do with fleet automobiles, but donation may actually take a bit of hassle out of what can be a tedious prospect of dealing with many potential buyers. 

POSTED BY: Rich Lanning AT 02:53 pm   |  Permalink   |  E-mail this
Sunday, 15 June 2008

When you've got an extra car or truck lying about with nothing to do, perhaps you can assist a veteran and her or his family through the Purple Heart Car Donation Program.  Especially in a time of apparently unending war, it is easy to make the case that every American owes a veteran and most especially those who've been injured in the line of duty. 

 

One could also make the argument that programs such as the Purple Heart Car Donation Program are necessary because federal officials aren't doing a very good job of taking care of the veterans that it keeps pledging to do a better job of fixing up.  However, veterans groups have rarely felt very well taken care of, so the need for charitable programs has always been a part of veteran life.

 

Given how the cost of insurance (that veterans are not automatically entitled to) keeps going up for veterans and everyone else, it's no wonder that there is so much work to be done by the Purple Heart Car Donation Program and other veterans' groups.  Indeed, the amount of money paid for the demonstrably sub-standard care given at some Veterans' Administration (VA) hospitals, has been something of a national scandal since the first Gulf War in the early 1990s.

 

So, it may surprise you that an old car or truck may be donated to the Purple Heart Car Donation Program without even leaving your pajamas.  From their website, you may fill in all the pertinent information that will allow someone to call and arrange a time for pickup

 

The Purple Heart Car Donation Program differs from many programs in that it doesn't necessarily just sell your vehicle on the open, wholesale market as many online donation services do.  In this case, they run their own, non-profit pick up, delivery and repair services.  Also, unlike many other services, you're allowed to drive your running car up to their offices for donation. 

 

There are many good, charitable outreach missions supported by proceeds generated from the Purple Heart Car Donation Program.  For instance, some of the better cars are used to assist veterans in getting to their medical appointments.  Sometimes monies are used to help families get on their feet during war time, or to even help purchase a prosthetic limb better than the most basic models that are covered by veterans' insurance, despite the high fees charged for such coverage.

 

That organizations such as the Purple Heart Car Donation Program are even necessary is a surprise to many who have, perhaps rightly, assumed that the federal government was indebted to soldiers wounded in the line of duty.  However, the sad fact is that once a medal has been awarded, injuries that may have changed a soldier's entire way of life are not considered the government's problem once the soldier has been discharged.

 

Consider the recent increases in massive head injuries during the second Gulf Wars.  Though bake sales and fund raisers across the country have been trying to send after-market head protection to soldiers serving, it would seem that money that should be spent keeping people safe is being diverted.  The Purple Heart Car Donation Program isn't currently sending body armor to Iraq and Afghanistan; it does support medical testing and helping veterans afford their medications.

 

That said, the prognosis for those with brain injuries isn't very good.  For this reason, charities such as Purple Heart Car Donation Program have been stepping in and giving the young spouses of severely injured veterans the skills to help care for them when the VA can't.

 

It is also notable that though the current Gulf Wars have not had a very high mortality rate, by the usual accounting, the flip side of that is a very high proportion of troops that have been injured in the line of duty - many of them to be sent back into action.  Though the Purple Heart Car Donation Program is only a drop in this bucket, the lives it has touched have keenly felt its presence.

POSTED BY: Rich Lanning AT 02:51 pm   |  Permalink   |  E-mail this

Facebook
Twitter
Google+
LinkedIn
Email
Add to favorites

Related Products And FREE Videos





The Quick Profit System :: 160x600 Banner

Lanning Enterprises
Wymore, NE  68466
Phone: (785)268-0848

Email:  Lanning Enterprises

Site Powered By eDirectHost.com
    Learn How To Make A Website