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Thursday, January 5, 2012

How to donate a car to Saline County's Habitat for Humanity

Your vehicle donation will help Habitat for Humanity of Saline County build homes in partnership with families right here in your community.

When you donate an automobile or other vehicle, you may be entitled to tax benefits. Donate a vehicle today by contacting Wes at (501) 315-0011 or visit the Habitat ReStore located on Market Street.

What can you donate?
Car
Truck
Boat
RV
Motorcycle
Construction or farm equipment
Any other vehicle ― running or not!

Why donate?
Proceeds from the sale of your car help your local Habitat for Humanity build and renovate houses with families in need.
You may receive a tax deduction if you itemize.
Recycling your car saves energy and natural resources.

Cars for Homes: How car donation works

How do I start the vehicle donation process?
Call the Habitat ReStore at (501) 315-0011 and ask for Wes.
Most vehicles with proper title information are accepted, unless the costs of processing and towing fees exceed the auction value of the vehicle.

What happens after my vehicle is accepted?
You will be given instructions for processing the vehicle’s title.
Your donated car is then assigned for pickup.
Arrangements are then made to have the title processed.

What happens after my vehicle is picked up?
After the car has been sold, you will receive an acknowledgement letter thanking you for your support and providing the vehicle sale information. This letter may be used as a receipt for tax deduction purposes; additional tax documents will be provided when required by IRS regulations as a result of the sale value of the vehicle.

Cars for Homes: Tax benefits of your car donation

Can I claim my car donation as a tax deduction?
Yes. Habitat for Humanity is a 501(c)(3) nonprofit organization. Contributions, including vehicle donations, may be claimed as deductions on your federal tax return if you itemize on Schedule A of Form 1040.

How much can I deduct?
Once Cars for Homes sells your vehicle, the selling price becomes the amount of your donation. If your vehicle sells for more than $500, you may deduct the full selling price. If your vehicle sells for $500 or less, you can deduct the “fair market value” of your vehicle, up to $500.

How do I figure out the “fair market value” of my car?
The following websites can provide this information:
Kelley Blue Book
Edmunds
NADA Guides

What documentation will I receive for my tax return?
Within 30 days of the sale of your vehicle, Habitat will send you a written acknowledgement/receipt. This receipt will include:
The gross selling price of the vehicle (if it sold for greater than $500).
Year, make, model and vehicle identification number information.
A statement that the vehicle was sold at arms-length between two unrelated parties.
A statement that no goods or services were received in return for your contribution.

Where can I get more information?
Consult your tax adviser or refer to any of these IRS Publications:
Publication 4303, A Donor’s Guide to Vehicle Donations (147KB .pdf)
Publication 526, Charitable Contributions (1.2MB .pdf)
Publication 561, Determining the Value of Donated Property (1MB .pdf)
Form 8283, Noncash Charitable Contributions (256KB .pdf)
Instructions for Form 8283 (63KB .pdf)

What documents do I need to donate a car?
Habitat for Humanity requires a clear title to the vehicle, and as of 2011, the State of Arkansas requires that a Bill of Sale is submitted to the DMV office to complete a vehicle donation. (http://www.dfa.arkansas.gov/offices/motorVehicle/Documents/BillofSale.pdf)
If you cannot locate or have lost the certificate of title, Habitat for Humanity can help you obtain the proper documentation and forms.

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