It’s been a while since we discussed contributions of autos and other vehicles to nonprofit organizations. In 2005 and 2006 significant changes were adopted requiring better substantiation of value and detailed recordkeeping. See our prior post on valuing donated vehicles posted by Sandy Siegfried on September 27, 2006.
Here is a summary of the current requirements in case you are considering accepting gifts such as cars, boats or aircraft.
If the claimed value of the vehicle is less than $500 a church may use its own form or the copy C of of Form 1098-C to make your contemporaneous written acknowledgement to the donor. If you use 1098-C, you must check box 7. You will need the name, address, donor social security number, date, make/model and VIN#. Give copy C only to the Donor within 30 days of the contribution and keep a copy. Do not give copy B to the donor and do not file copy A with the IRS. If the donor refuses to supply his Social Security number you must check box 7, regardless of the value of the vehicle.
If the value is over $500, see post #2.
