What Paperwork Do I Need to Donate My Vehicle in Rhode Island?
- To donate the car, you will need to transfer your title to the charity, signing and dating the title certificate and writing down the mileage. If you don't have the title, you must apply to the Department of Motor Vehicles branch in Cranston for a duplicate. The DMV website states this can take up to three months, so plan ahead. The Donate A Car 2 Charity website recommends you also obtain a release from liability from the charity that states you're no longer responsible for any accidents or violations involving the car.
- Your deduction will usually be limited to either the fair market value of the car or whatever the charity sold it for, whichever is less, the IRS states. If you claim the sale price, you'll need the charity to confirm the price; if you claim market value, you'll need records of how you calculated it. For a deduction under $5,000, you can appraise the vehicle with just a used-car guide; for more than $5,000, you'll need a written statement from a professional appraiser.
- If you're claiming a $250 deduction or less, you'll need a receipt or letter from the charity providing the organization's name, the date and location of the deduction, and a description of the property. Between $250 and $500, the charity must also state whether you received any gifts or services in return, other than token ones. Above $500, you must keep records of how you acquired the car -- gift, purchase or inheritance -- and when.
- Rhode Island's Department of Business Regulation recommends double-checking that you're dealing with a legitimate charity, rather than a scam. Legitimate charitable non-profits will register with the state; you can contact the Rhode Island Securities Division at 401-462-9583 to confirm registration. The charity should also be willing to provide you with paperwork about the charity's mission, its legal status and how it will use the car. The organization should also be able to show that it meets IRS standard for a "qualified organization" -- a necessity if you want to claim a deduction.
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