Donating Your Automobile Supports Charity Organizations

There are many ways to support one's favorite charity. Donating one's time and resources is always welcome. People can give money, food and used items like shoes, clothes and furniture. Donating a car is another thing they can do, and get a tax deduction in the process.

Charitable organizations do not discriminate. They will accept not just cars, but other types of vehicles as well, like trucks and vans. Old, unused or even damaged cars can be donated and put to good use. Some vehicles may be unsuitable for driving, but their parts can be sold and the proceeds used for other projects.

People who cannot afford to buy their own means of transportation are the main beneficiaries of a car donation charity. They are given old but running cars or repaired cars, so they can drive to work and access shops and schools. Being mobile is important especially for those living in areas far from public transportation routes.

Some vehicles may be beyond repair and can only be sold for parts and scrap metal. This does not mean that they cannot be used to benefit other people in need. Charitable organizations can use the proceeds of the sale to fund other projects.

For the owners, a car donation charity is not their only option for disposing their old, unused or damaged vehicles. They can repair and sell the vehicles themselves, or they can trade them in a dealership. Both cases require a significant investment of time and effort for the owners.

For instance, even if they can fix a car for resale, they would still need to put up ads, answer inquiries and try to strike an agreement with prospect after prospect. Trading a car in a dealership involves fewer hassles, but they may never be sure that they are getting a fair price. Donating them to charity on the other hand is a simple transaction, making owners eligible for a corresponding tax break.

Donors should make sure to document the fair market value of their vehicle. The tax deduction is equivalent to this value, unless the charity sells the vehicle for a lower price, in which case, the selling price becomes the tax-deductible amount. For example, a $1500 car sold for $1000 entitles the donor to a $1000 off in their taxes.

Donating a car or other types of vehicles is a generous way of showing support to a deserving charity. By being able to provide other families their own transportation or giving the charity another means to fund projects, donors are making a difference in other people's lives, whether they know it or not. Getting a tax break is just icing on the cake.

If you have an automobile that may not sell for much, consider looking into donating an automobile to one of the many charities in your city or town. Finding a car donation charity is worthwhile and will work as a deduction on your taxes.

Tags: Automotive, autos, charity, donation, Finance, general, government, non-profit, philanthropy, society, taxes, vehicles