The charity must tell the donor what the car sold for and the donor can deduct that amount.
If the charity receives a car as a donation and then sells the car, they issue a 1098-C to the donor with a letter thanking them for their gift. The taxpayer then uses the 1098-C as the amount donated on their taxes. (This is different from a few years ago when people estimated the car's value and put that on their taxes. Congress got annoyed that a car that pulled in $600 at auction was getting someone a $900 tax break because the person claimed it was worth $6000.)
To properly complete the 1098-C, the donor MUST give you their name, address and SSN/ITIN. You can request this on a form W-9 or any substitute form. (If they don't give you the number, they can't deduct anything.) Besides the copies you give the donor, you send one copy to the IRS each year.
If the charity receives a car as a donation and then keeps the car or sells it directly to a needy family for less than it's worth, see the instructions to the form.
The YMCA is a charitable Organization under Section 501 ( c ) (3) of the Internal Revenue Code.
Look at Form 990, Line 7h
the link is below
http://www.irs.gov/pub/irs-pdf/f990.pdf
and look at the instructional link below.
I think your question is more on how to report the revenue and how to calculate the basis of the donated asset. For basis questions, look at publication 551 The basis of donated assets is very simple indeed.
The answerer who mentioned the 1098 is correct. If the value is under $500, you don't have to report to the IRS, but then the donor can't claim over $500 either.
(I am going to pick up a donated car tomorrow.)
Feel free to e-mail me with any questions.
Please see a CPA about this. The rules have gotten VERY tough for car donations in the past 2 years and this is an absolute favorite audit target for the IRS.
Don't go to a CPA, go to a tax professional! It is a delicate situation and needs a great deal of documentation.
This site is the best I can do. I hope this helps!
http://www.efile.com/tax-deduction/income-deduction/charitable-contributions.asp
You give receipt to donor for what you actually receive for vehicle at auction. Special form to fill out.
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