It is fine to donate a car to charity. But before you donate a car in NJ, ensure that you are aware of all the details associated with it.
You are a resident of New Jersey and you are a car owner. That is a good combination considering the fact that you are eligible to help many underprivileged children in NJ. You do not have to give them money. What you can do is donate a car in NJ to a non-profitable charity that runs programs to support the many children in need and help them grow up to be better individuals. If you think you are up for this, then just do one thing. Find a charity organization that is recognized by the IRS. You need to do this or else you will not be able to claim the benefits of car donations in New Jersey. Yes, as the car donor, you get to earn tax benefits on your donated vehicle.
How To Know That The Charity Is a Trusted One?
You have to carry out a little research to get this confirmed. You may ask for references from your known circle or you can just search a bit online. To get tax deductions, you have to ensure that the charity is recognized by the IRS. Once you have found such an organization, you can request a copy of the charity’s letter of determination from the IRS to verify the charity’s tax exempt status.
What To Expect After You Donate a Car In NJ?
It is very hard to determine what is going to happen to the car that you have donated. You have to find it yourself. Ensure that the car donation organization provides you with an itemized detail receipt of the car donation. You will need this to file it along with the tax return.
It is also the responsibility of the charitable organization to provide a proper certification to the donor detailing the plan of using the car. They also need to promise that the donated vehicle would not be used for any profit making purpose and won’t be sold off to any other company or person in return of money.
If any charitable organization accepting car donations in New Jersey is found to make false claims, then the Federal government imposes penalties on those charities.
