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July 25, 2008, Newsletter Issue #114: Charities Must Disclose How They Use Car Donations
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Tip of the Week
Donors are entitled to claim fair market value on donated vehicles, if charities plan to keep and use the car for charitable work. But donors will need to get documentation from the charities on how they will use the donated vehicles. In order to claim a tax deduction, donors will need:
* A written statement from the charity on how it will use the vehicle. The charity also needs to estimate in writing how long it expects to use the donated car.
* A certified statement from the charity that it will not sell the vehicle before the length of time ends on its intended use for the car.
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