Car Donations To Charity Have Many Advantages!
Car donations to charity have been recently affected by new financial regulations. Despite that, it still makes sense to help the needy, and gain some real financial benefits along the way…
The subject of car donations to charity has come up several times this week. When you are the owner of an aging vehicle, and it stands you up twice in as many days, then serious thought sometimes has to be given to replacing it. I have been very attached to my old blue Mustang but I also knew that this day would inevitably come. The repairs are starting to become crippling every month, and it makes no sense to keep the old girl going. She is too good for the scrap heap though, and the whole idea of donating my car to charity came about because of a suggestion from a work colleague.
Everyone knows how attached I am to my car, and when she began giving me trouble it was said to me at work as a bit of a joke that she would be a good car donation for one of our local charities. At first it hurt my feelings a bit, but then the more I thought about it, the more I warmed to the idea.
Evidently there are several local charities that accept car donations, then bring the car up to a sound mechanical condition, and then present them to needy recipients who are then able to use the cars to find work. The more I thought about this, the more I liked it. The idea sounded really good to me, much better than my beloved car ending up being sold off bit by bit for spare parts. The thought that my car would make such a difference in someone's life was a very nice feeling to have.
My car wouldn't be worth all that much, maybe between $1,000 - $2,000. As a car donation I will be able to receive a tax deduction, but the best part is that I won't have to be bothered trying to sell it privately or undergo those notoriously draining sessions negotiating a trade-in price with a car salesman. I have also been told that the whole process is extremely easy, as the car is collected and all the paperwork organized for me.
I am aware that with the recent changes to the IRS laws that car donations to charities have suffered badly. This has been because taxpayers have in the past overvalued their cars that they have donated. Now, under the new rules, the amount of deduction can only be determined once the car is sold. The charity then notifies you by way of receipt which shows the exact amount that your car made at auction.
Because the charity is going to make improvements to my car, I will be able to use the Fair Market Value which is listed in the Kelley Blue Book to determine my tax deduction. This is much better than having to wait until the vehicle is sold at auction and hoping for a good price and hence a good tax break. It's a good feeling though, one that I highly recommend.
Car donations can mean a world of difference to so many people, and not just those in the USA. Many of the car donation charity organizations work internationally, and the dollars raised on each car sale goes a very long way in providing humanitarian aid as well as disaster relief right throughout the world.
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ABOUT THE AUTHOR
Charities and their founding sources are relatively unknown to the average American. On his website Cardonationhelp.com Sam Butler’s presents practical advice for both, benefactors and beneficiaries.