We can answer by begin to define who are the parties involved : who doa is the ” DONOR ” and who receive is the ” DONATORY ” .
The donor must be assured that no longer needs the car and want to donate it to a charity .It is necessary to carry out a survey of conditions of the car to see if it is worth donating it. If the car is very old and finished, the donation is not the best thing to do.
To be made a donation of cars is necessary that the charity is legally accepted and prepared to receive the donation.
The donation of cars to a charity can be made verbally (if the car’s value is too low ) and formally under contract .
For tax benefit purposes it needs to be formalized by contract before a notary and witnesses.
Below , some fundamental information to prepare the car donation contract:
- Date and place of the donation contract .
- Definition of the contracting parties ( donor and the donee ) .
- The donor must present documentation of the car to be donated .
- Detailed Identification of the car donated : brand and model of car , year of manufacture, registration number, value and other items for the car that is needed at the time .
- Declaration of the donor reporting their willingness to donate the car.
- Declaration of donee accepting donation..
- The deadline for issuing a donation .
- Declaration of the donor on the degree of kinship with the donee and the amount of donations made to favor donee ( this is of great importance for the tax payment ) .
- The commitment of the beneficiary for any costs related to the donation agreement.
- The closing of the contract with the signatures of the parties: the donor, the recipient and the witnesses.
A while ago, there were reports of abuses of tax benefits with the charitable organizations. But after 2004 new rules of the IRS makes it more difficult for offenders defraud the system .
Now, each donor should make sure that it is making donations to charity would be.
Today, some states offer free guides to check the condition of the charities and car donation programs.
Stay Tuned to donate a car to a charity !!!