CAE CHARITY

Donating a car is a way to support a charitable organization while still reaping an economic benefit through a tax deduction. All donors should be aware that tax deductions for used automobiles, boats or airplanes are available only to those individuals who donate to a qualified charity and who itemize deductions on their tax returns. Following are some tips to consider when deciding whether to donate your car to charity.

Do make sure that you are donating to an eligible organization. Tax deductions are available for donations made to §501(c)(3) organizations, public charities which the Internal Revenue Service has determined to be tax-exempt. To verify an organization's qualified status, contact the Public Charities Division at (617) 727-2200, ext. 2101; the IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500; or look for IRS Publication 78 in your local library's reference section or on the Churches, synagogues, temples, mosques, and governments are not required to register with the Non-Profit Organizations/Public Charities Division or to apply to the IRS for tax-exempt determination. They may not be listed in Publication 78, but donations to these institutions are tax deductible.