How to Donate Clothing to Charity
Everyone has things in their closets that they haven’t worn in years. But something you don’t love anymore could be another person’s new favorite outfit! To avoid throwing clothes away or having them clutter up your house, donate them to charities. Pick the right spot to drop off your clothes, decide what to donate, and ready your clothing for donation to make sure your items are put to good use for years to come.
Method One of Three:
Finding a Donation Center Edit
Method Two of Three:
Picking Stuff to Donate Edit
The Ins and Outs of Boat Donations
People donate their boats to charitable organizations for a lot of reasons. Some want to get out from under the expenses of ownership and score a tax deduction at the same time. Others don’t have the time to sell it. Some have overinvested and know the market will never repay them, so instead of swallowing the bitter pill of a big loss, they choose the altruistic route. And then there are those for whom a donation offers the satisfaction of helping to support a cause they care about.
Dr. Laura Schlessinger donated Katana, a 47 foot race boat, to the Orange Coast College School of Sailing and Seamanship.
“Everyone has a different viewpoint, yet for many, the process of donating can be emotional because it’s not always easy to let go of something that’s important to you,” says Brad Avery, the Director of Marine Programs for Orange Coast College School of Sailing and Seamanship in Newport, California, one of the nation s largest nonprofit public boating education institutions—which has a fleet of power and sailboats comprised of donated vessels and those purchased from proceeds of other gifts. “Every donation is different in terms of what people are looking for, and their wishes often depend on the size of the gift and their objective.”
Boat donations are an excellent means of philanthropic giving, but the process isn’t as simple as some people think. It has to be done right with some planning, research, and the advice of a tax professional. By crossing the t’s, you can turn your old boat into a gift that helps others without giving yourself the headache of a financial disappointment. Do your homework when choosing a charity. In order for you to qualify for a deduction, the charity that gets your donation must be an IRS-approved 501(c)(3) organization. You can check its status through IRS Publication 78.
To maximize the deduction you can take, you’ll want to claim the “fair market value” of your boat, which is best determined by an appraisal from a certified marine surveyor. For boats with a value greater than $5,000, an appraisal is mandatory. However, to claim the fair market value of your boat, the IRS says the vessel will not be sold by the charity prior to “significant intervening use.” Essentially, that means that if the boat isn t used by the nonprofit on a regular basis and is subsequently sold by the charity in less than three years from the date of donation, the IRS will restrict your deduction to the amount the charity received for the sale. That’s a problem for you if the liquidation price is much lower than the fair market value originally claimed.
This type of situation is not rare and it occurs because many charities aren t in the business of using boats. They’re more interested in turning the vessel into cash as quickly as possible. The best way to avoid this is to find out what the charity’s intentions are for the boat before you make the donation.
“We turn a lot of boats down,” says Avery, who gets calls from those who want to donate almost every day. “Many donors want us to hold their boats in the program to use, but we can’t always do that and we tell them so up front. Some boats are not in the right condition; others are not the right fit for our program. Some donors are hoping only for the biggest appraisal they can get with no altruistic motive at all. When that happens, the relationship doesn’t really work. There has to be the motivation of giving at some level. It’s not just about getting a big tax deduction. That does come into play, but the gift has to work for both the charitable institution and the donor. That’s why it’s important for both parties to do their due diligence.”
OCC has an excellent reputation for working with donors and taking their intentions for their boats seriously. That professionalism has drawn some high-profile donors to the school, including the late Roy Disney, who gifted his 86-foot, $7,000,000 boat Pyewacket in 2005. It came with a grant underwritten by the former Walt Disney Co. board member to help cover costs. “To accept a boat like that, you really need to know what you’re getting into in terms of maintenance and operation,” says Avery. “Disney didn t expect to give it without an endowment, so he asked us to create a program around the boat, which we did. We ve done that on many of our large gifts.”
That includes Nordic Star, a 92-foot Hargrave and the school’s current flagship. It’s used as a classroom for students in the school’s professional mariner program. Prior to Nordic Star, OCC’s flagship was Alaska Eagle, a Whitbred round-the-world winner gifted to the school in 1979. That boat logged 300,000 sea miles, and carried 3,000 students to destinations like New Zealand, Europe and Antarctica.
OCC has an impressive fleet (40 models from 14 to 92 feet) with prestigious boats, but it accepts mainstream models, too, as there are brands such as Tiara used by its students. And there are other organizations that take production models, as well. But to find them, you have to do your homework.
If the charities you normally support aren’t equipped to accept boat donations, find a reputable one that is. You can research organizations through the Better Business Bureau and Charity Navigator. Be sure the charity is normally engaged in activities that include the use of boats, such as boating schools, marine research organizations or Sea Scout troops. Also be sure the charity will properly log use and make those logs available to the IRS. You should also contact an IRS specialist prior to donating your boat to get clarification on whether the intended use for the boat will be adequate to substantiate a fair market value donation.
When you’ve narrowed your choices down, take the time to learn more about the charity in terms of how your boat will fit in. Says Avery, “Look at where your boat will live and who will maintain it. When choosing a nonprofit, think of it as a relationship.”
Donate a Boat to Charity through Boatbreakers
Here is how it works.
You or a relative calls and passes us details about your boat. We pay her a visit, and value her. Once completed we then offer her for sale to our registered buyers list, advertise her online and get her noticed. Once we have found a buyer and negotiated best price we then complete all paperwork and transfer title to the new owner. We then pay off any bills the boat has amassed and pass the remains to the chosen charity. The receiving charity issues us a receipt and we give this to your estate for further tax relief processing.
By donating your boat to us and we sell this asset on your behalf and pass all the profits from the sale to any charity of your choice ensures you will be directly helping charities of your choice.
There are two main ways to donate your boat to charity via Boatbreakers. Although different, both options have associated financial benefits:
Leave Your Boat to Charity
Manage Inheritance Tax by leaving your boat to Boatbreakers in your Will
Assets (Yachts and Boats) which are left to us and then sold with the profits from the sale going directly to a charity of your choice makes the value sold exempt from Inheritance Tax. Consequently, boat owners can use the market value of their boat to reduce the amount of Inheritance Tax their family will owe after they die.
By leaving your boat to us, you will be able to enjoy your boat as you get older, secure in the knowledge that when you die it will not become a millstone to your family. Even if your boat is moored overseas, it will immediately cease to be a cost or liability.
Where the value of an estate is over the Inheritance Tax (IHT) threshold, people can remove the value of their boat from their estate when they die.
Through our partnerships with specialist law firms and tax advisors, Boatbreakers can help you to plan ahead for the future.
Donate A Boat
Donate your boat to Boatbreakers and benefit from Gift Aid
Boatbreakers Donate Your Boat model enables boat owners to quickly dispose of their vessels without incurring any more costs. This is particularly helpful for people who are facing escalating maintenance costs or where monthly mooring or storage costs are becoming a financial burden.
Once accepted for the scheme, any debts owed against the vessel will be paid off from the final selling price, with the net proceeds being passed to a charity of your choice as a donation.
Inheritance Tax Benefits include:
- No Inheritance Tax (IHT) is paid on the gifts of assets to charity.
- If the value of a boat takes an estate net worth over the IHT threshold, by donating it to us and then the sale proceeds are donated to charity the estate will be relieved of any IHT.
- The value of a charitable gift is deducted from estate valuation.
- If the boat represents 10% or more of the value of the estate, leaving it as a legacy will reduce the tax on the taxable estate from 40% to 36%
Through our partnerships with marine lawyers and specialist tax advisors, we d be glad to help with your Inheritance Tax planning. For further information on Boatbreakers legacy gift scheme, download our brochure, or request a call back from a member of our team to find out more.
If the estate including any assets held in trust and gifts made within seven years of death is more than the threshold, Inheritance Tax will be due at 40 per cent on the amount over the nil rate band. From 6 April 2012 people who leave 10 per cent or more of their net estate to charity can choose to pay a reduced rate of Inheritance Tax of 36 per cent.
A higher rate UK tax payer sells their boat for £20,000 under our ‘Gift Your Boat’ scheme.
£4,000 in mooring fees and other miscellaneous charges are owed to the marina and a local boat mechanic. We sell the boat for 0% commission, the marina has agreed to freeze mooring fees for six weeks and the mechanic has agreed to wait for his money whilst the boat is sold.
Under Gift Aid, Boatbreakers can increase the value of the ‘£16,000’ donation by 25 pence in the Pound (25%) to £20,000. What s more, higher rate taxpayers can claim relief from HMRC thereby reducing the tax owed. The tax owed in the financial year in which the donation was made must be greater than the value of the rebate.
Another working example:
A widower owns a cottage in Hampshire worth £500,000, she has financial assets totaling £200,000 and her husband’s motorboat worth £50,000 moored in Gosport.
The total value of the estate therefore is £750,000.
Given the widower s husband died on 1 April 2008, the couple s inheritance tax allowance stands at £625,000. By leaving the yacht to Boatbreakers in their will, the value of the estate for IHT is reduced from £125,000 to £75,000. Consequently, IHT payable is reduced to £30,000.
To find out more about Boatbreakers Leave Your Boat to us so we can sell it and give the proceeds to charity’, call 0845 5083338.
We can also relocate the boat to our marina or help you to freeze mooring fees whilst the boat is sold.
By donating the net proceeds of the sale to charity, UK taxpayers are able to increase the value of their donation to charity by 25% under the Government s Gift Aid scheme. What s more, higher rate tax payers are also eligible for tax relief which equates to 20% to 30% of the gross value of the gift.
- You don’t have to bring the boat to us, we collect
- You don’t have to fix the boat before we accept the vessel
- You don’t have to clear the debts before you give it to us – we will sort this out
- We will do all the paperwork for you
- It s green you are recycling your boat.
- You eliminate the hassle of selling or trading in your boat.
Finally, in the case of a wreck or sunken boat this type of boat has no value and in fact will cost money to dispose of her properly. Therefore we cannot accept this type of boat in our ‘donate your boat to charity’ scheme.
Boat Donation Made Easy
fast. free. nationwide.
Stop Paying Fees
How it works
We’ll call you to arrange a convenient pickup time.
It’s that easy. No paperwork, no headache, zero cost.
Stop Paying Maintenance Fees
Skip paying expensive long term docking fees and unnecessary insurance. Donate now before you accumulate all those fees.
save money on your taxes
If your car sells for more than $500 your receipt will be for the sale price. Otherwise you claim the fair market value of the car , up to $500.
Donors receive a voucher for a 2 night and 3 day hotel stay. Choose from 50 locations across the USA.
We don’t use a middleman
By keeping our process in house, we cut out the extra costs often incurred by other charities. This means a higher percentage of your donation goes to help the kids.
our matching gift sponsors
Newport Beach, CA
Christopher B. Arapahoe, NC
Richard N. Bettendorf, IA
Your car impacts
A child’s life is his home, school, friends and community. It takes a positive experience in all arenas to build a healthy child. We’re a registered nonprofit Jewish organization who, together with Oorah, our sister charity, help thousands of children develop into productive members of the community.
Our vision is to give our children the ability to succeed in life. We focus on educational, mentorship and year-round programs for our children, their families and their communities. We rely on thousands of volunteers. be a mentor
A quality education is foundational to a child’s success in so many areas of life. This principles guides our many programs helping children access educational opportunities. volunteer
How Do I Donate My Car To Charity, Make A Vehicle Donation, donate a
Donate My Car to Charity
Donating a vehicle to charity not only gets rid of an old vehicle for you, but also gives you a way to help people.
No matter which state you live in, Goodwill Car Donation is happy to accept the gift of your unwanted vehicle.
How to Donate a Vehicle
We make it very easy to donate a vehicle to charity. This is how the process works:
- Choose to donate any type of vehicle. We take cars and trucks, in addition to a variety of recreational vehicles. Feel free to give us your RV, motorcycle, boat, plane or jet skis. If the vehicle no longer works, that’s perfectly OK, too.
- Get in touch. Just give us a call at (866) 233-8586 or contact us through our website vehicle donation form. When you get in touch, let us know when will be the best time for us to come tow the car away.
That’s everything that’s needed on your end. Our team will show up on the date and time you specified to retrieve the vehicle. We then auction it, using the proceeds toward the many Goodwill programs and services in your state. You’ll also receive a top tax receipt for your deduction.
Which Charity Should You Choose?
Maybe you’re thinking, “I want to donate my car to charity,” but you’re not sure which charity to work with.
First, when you decide to make car donations to charity, you need to make sure you’re giving to a legitimate charity that is registered as tax exempt with the IRS.
Below are some commonly thought of nonprofits that take car donations:
Goodwill Car Donation: Goodwill organizations direct the proceeds of vehicle donations towards many programs and services for job seekers, youth, seniors, veterans, people with disabilities, and other specialized needs. A common saying you’ll hear from Goodwill organizations is “A hand up, not a hand out”. One fantastic benefit of choosing Goodwill is that all vehicle donation proceeds are distributed to the local community where the donation took place.
Kars4kids.org: Directs the proceeds of vehicle donations towards programs and services for Jewish children and their families.
National Kidney Foundation: Directs the proceeds of vehicle donations towards programs and services that have to do with the awareness, prevention and treatment of kidney disease.
The Salvation Army: Directs the proceeds of vehicle donations towards rehabilitation programs. This charity is an evangelical part of the universal Christian church.
American Cancer Society: Directs the proceeds of vehicle donations towards cancer research and advocacy.
There are many more options you can choose to donate a vehicle to, including Big Brothers/Big Sisters of America, Make-A-Wish Foundation, United Way of America and Alzheimer’s Association.
Why Choose Goodwill Car Donation?
When you donate a vehicle to Goodwill Car Donation, you ll be supporting programs that help disadvantaged people gain employment.
We are flexible with the vehicles we accept, and we go out of our way to make the donation process stress-free for you.
To get rid of your vehicle and help those around you, simply contact us today!
Donate Your Vehicle Below
Takes less than 60 seconds!
Donating a Car to Charity
You Must Follow the Rules to Get That Tax Deduction
01/15/2002 (updated 10/30/2017) – By Edmunds
It’s easy to donate a car to charity if all you want to do is get rid of it. Simply call a charity that accepts old vehicles and it will tow your heap away. But if you want to maximize your tax benefits, it’s more complicated. Here’s a walk-through of some of the considerations, with the usual proviso that you should discuss these issues with your tax preparer before you act.
You Must Itemize Your Return
If you want to claim a car donation to reduce your federal income taxes, you must itemize deductions. You could itemize even if the donated auto is your only deduction, but that’s usually not the best choice.
Here’s the math: Suppose you’re in the 28 percent tax bracket and the allowable deduction for the vehicle’s donation is $1,000. That will save you $280 in taxes. If you’re in the 15 percent tax bracket and you get that same $1,000 deduction, it will reduce your taxes by $150.
If the car donation is your only deduction, it’s likely that taking a standard deduction would save you thousands more dollars in taxes. The only way that donating a car nets you any tax benefit is if you have many deductions and if their total, including the car, exceeds the standard deduction. And remember, you can always donate as much as you want to charities, but the IRS limits how much you can claim on your tax return.
The Charity Must Qualify
Only donations to qualified charities can provide a tax deduction for you. A qualified charity is one that the IRS recognizes as a 501(c)(3) organization. Religious organizations are a special case. They do count as qualified organizations, but they aren’t required to file for 501(c)(3) status.
To help you determine whether a charity is qualified, the easiest thing to do is to use the IRS exempt organizations site, or call the IRS toll-free number: 877-829-5500.
A Key Concept: Fair Market Value
The IRS defines fair market value as “the price a willing buyer would pay and a willing seller would accept for the vehicle, when neither party is compelled to buy or sell and both parties have reasonable knowledge of the relevant facts.” In this scenario, neither the buyer nor the seller can be an auto dealer. Both must be private parties.
What complicates the matter for taxpayers is that under current IRS rules, you can only deduct a vehicle’s fair market value under four very specific conditions:
1. When a charity auctions your car for $500 or less, you can claim either the fair market value or $500, whichever is less.
2. When the charity intends to make “significant intervening use of the vehicle.” This means the charity will use the car in its work.
3. When the charity intends to make a “material improvement” to the vehicle, not just routine maintenance.
4. When the charity gives or sells the vehicle to a needy individual at a price significantly below fair market value.
Determining Fair Market Value
Edmunds can help you determine your vehicle’s fair market value with its Appraise Your Car calculator. Enter the car’s year, make and model, as well as such information as trim level, mileage and condition. By looking at the private-party value, you’ll get an accurate idea of what your vehicle is worth.
Note the caution from IRS Publication 4303: “If you use a vehicle pricing guide to determine fair market value, be sure that the sales price listed is for a vehicle that is the same make, model and year, sold in the same condition, and with the same or substantially similar options or accessories as your vehicle.”
Getting Fair Market Value Is Rare
It’s not realistic to expect that your car will meet one of the stringent fair market value requirements. Only about 5 percent of donated vehicles are suitable for use by charity recipients. About a third of donated cars are junked, and the rest are auctioned off.
So unless your car is in good or excellent condition, it will most likely be sold at auction or to an auto salvage yard. In that case, your deduction is based on the car’s selling price, not your estimate of its fair market value. And note that this price is not necessarily something you’ll know when you donate the vehicle, or even before the next tax-filing time, since an organization has up to three years to sell your car.
Getting tax benefits for a donated car requires a lot of documentation, whether the car is junked, sold at auction or given to a charity’s client. IRS Publication 4303 has all the details. Be sure to keep all the papers or electronic files. You’ll need them at tax time.
If there’s a delay in getting paperwork from the charity, your first option, according to IRS Publication 526, is to file Form 4868. That’s a request for an automatic six-month extension of time to submit your return. Your second option is to file the return on time without claiming the deduction for the qualified vehicle. When the charity finally sends your notification, you can file an amended return using form 1040X to claim the deduction. You’ll have to attach a copy of the notification to your 1040X.
Another Approach To Car ‘Donation’
Besides giving your car directly to a charity, there is another way your vehicle can help a charity and also maximize your tax benefits: You can sell the car yourself and donate the proceeds. By doing so, you might be able to generate more cash than if you let the charity sell it.
Parting with your old vehicle could help a nonprofit carry out its mission and also might make room in your garage for a new car. But how you proceed depends on your goal. If you’re focused on getting rid of a junker with minimal effort and you’d look at the tax deduction as a nice bonus, then donating your car makes good sense. But if your goal is to maximize your tax deduction, carefully review these steps, consult with your tax adviser and then make an informed decision.