If you've already donated a non-cash item, perhaps now you are wondering how all this will work out in your taxes. Well, we have some things you need to know. First, the value of your gift determines how much you need to prove to the IRS. The problem comes when you don't know now much the sale of your non-cash donation will be. Charts may be available but are not always that helpful. The price your donation sells for is your deductible value. This may not be as high as you may think.
Many non-profits use a third-party such as iDonate.com to liquidate your donation. Consider what your donation is worth on the market, usually 20-60% of the retail market. Some people refurbish and sell the vehicles themselves and donate the cash income. This cuts out the middle man but also takes up a lot of time that could otherwise be spared.
More valuable donations need an receipt, and the non-profit will need to be officially registered. Any charity should be able to produce a non-profit tax ID number for you to check with the IRS database. You may not receive a specific tax-value right away, and will later receive a receipt with the deduction.
Keep careful paperwork and make sure you can prove the worth of your donation.
Information taken from: “Determining the Value of Your Charitable Car Donation and Avoiding Audit”, Car Donation Information Center (www.cardonation-centers.org)Lauren White