Los Angeles Car Donation Tax Deductions

Donating your vehicle to a charitable Los Angeles organization is a great way to help those who are less fortunate, and car donation Los Angeles tax deductions can actually make the process beneficial to you as a donor as well.
Once you have determined that you are eligible to claim the charitable contribution of your vehicle as a tax deduction, you will want to start exploring the many organizations that can accept car donations and select one that is appropriate for your situation.


Determining a Charity’s Eligibility
On the most basic level, you will want to choose a charity that is qualified to accept car donations in the eyes of the IRS.  Essentially, this means that they have been given tax exemption by the IRS and are classified as a 501(c)(3) organization, and most likely, the organizations you know as non-profits probably are.
Organizations commonly recognized as 501(c)(3) groups include certain academic institutions, religious establishments, and other cause based organizations.


In the past, the most common way to check an organization's eligibility was by referencing Publication 78, a document released annually by the IRS with a cumulative list of qualified organizations.  However, this form is no longer published by the IRS and has been replaced with an online tool called "Exempt Organizations Select Check."


Among other things, this IRS search tool allows interested parties to find eligible charitable organizations as well as those that have had their 501(c)(3) status revoked for various reasons.
In addition to using the Exempt Organizations Select Check tool, you may also determine a charity's eligibility by contacting the IRS directly with the name and address of the charity in question or by asking the organization for proof of their tax exemption.  By law, any charity is required to provide proof of 501(c)(3) status to the public in the form of their determination letter and latest information returns.


How Will Your Charity Benefit From Your Donation?
Because the total value of car donation tax deductions may hinge on the way a charity chooses to use each vehicle, you will want to inquire as to how the organization plans to benefit from the use of your car in particular.  In fact, if the market value of your car exceeds $500 and you intend to make a deduction as such, you will have to gain written acknowledgement of the charity's plans for the car.


With regard to the vehicle's benefit to your chosen charity, you may want to find out from the organization how much they will actually gain out of the sale of your vehicle, if they plan to auction the car.  Unfortunately, they may only see a small fraction of the car's value after their operating costs have been paid, and if your motivation is purely altruistic, you may both benefit more from an alternative donation.


Additionally, if you have concern for how your donation will ultimately be used by any particular charity, you can seek guidance from resources like the BBB or organizations like Charity Navigator, which dedicate efforts to providing donors with the information they need to make the most rewarding donations possible.


As a whole, the act of donating your vehicle to a charity has the potential to make a big difference, and you should simply ensure that you have a clear picture of the overall impact of your particular donation as well as the regulations involved in car donation los angeles tax deductions.