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A growing number of not-for-profit organizations accept automobiles as donations. If you are considering making such a contribution, you need to understand what paperwork is needed to donate a vehicle to such an organization.
Function
The purpose of paperwork associated with donating a vehicle serves two purposes. First, the paperwork is designed to transfer ownership. Second, the paperwork is intended to document the value of your donation for tax purposes.
Transfer Agreement
Typically a bill of sale is used to convey ownership of a car. In the case of a donation, a transfer document is utilized. There are standard forms for this purpose.
Title
The standard car title must be provided to donate a vehicle.
Receipt
A receipt is given to the donor by the not-for-profit agency to document the value of the donation for tax purposes.
Warning
A tax deduction is only available if the donation of a vehicle is made to a not-for-profit entity with a 501(c)(3) designation from the Internal Revenue Service.
Source:
Charitable Giving Law Made Easy; Bruce R. Hopkins; 2006
Resource:
Internal Revenue Service: Charitable Contribution Deductions
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