If you are considering a charitable car donation, I am going to summarize some of the facts to know. You can receive a good tax deduction from the IRS for your old or used car and help someone in need through the process.
It is called a car donation or charitable car donation when you give a charitable organization your vehicle: car, car, truck, ATV, RV, plane or any other vehicle that may or may not be in working order. In the United States, charitable vehicle donations provide a great tax benefit for the donor and are rapidly gaining popularity.
First, you want to know the mission of any charity you are considering. If you have a specific charity in mind for car donation, do some research about it, especially if you are unsure of the charity’s reputation. There are many national and local charities that advertise in the newspapers or on television and openly advertise that they are seeking car donations. You’ve probably seen some of these, but are they your best bet?
Sometimes charities use car donations in their daily charitable activities, sometimes to transport people. Perhaps they can use it to transport people in need to medical appointments, social worker appointments, hospital tests, etc. More often, however, the vehicles will be sold at auction or on your car lots to raise money for charity programs or your general fund. Yes, it is not common knowledge that many charities have their own car lots. Many Goodwill Industry stores have their own.
Many people choose to donate their used and unwanted cars to help others. If you buy a new car or own a car that doesn’t work, you may consider donating the car, truck, or other vehicle. You can also donate boats, RVs, ATVs, planes and other vehicles or even real estate, depending on what your charity accepts. Your donation is tax deductible, which helps you and the organization you donated the vehicle to.
Day after day, charities provide services and needed support to people in communities across the country. While some may receive government grants or private donations, this is never enough to address the many causes they pursue. Charitable car donations are a planned part of the non-profit organization’s budget. These vehicle donations can make a difference in the type of services you can offer. So if you donate vehicles, you help keep these organizations going.
Simply put, car donation means acquiring old cars from donors and donating them to charities. There are car donation companies that are intermediaries or links between donors and the people who benefited from these donations. They are of great help in the financing of charities. Some companies even help organizations that do not have their own charitable programs. Car donation companies can auction the donated car or other vehicle on the market and the money is given to charities or the charity can use the car or sell it from their used car lot.
When you gift your car to a charity, you are given an IRS tax receipt as a charitable gift. Vehicle donations when made to a good faith and reputable charity are tax deductible. The IRS allows the donor-taxpayer to claim a tax deduction on the estimated value of the vehicle up to $ 500. The donor of the car or vehicle must have the title, so be sure to have it on hand when you begin the process.
Be sure to ask if the charity handles car donations; if you have your own charitable car donation program or if you pay an outside company to do it. If the for-profit business handles car or vehicle donations, find out how much money the charity receives from the sale and how much will go to the for-profit business.
You’ll see the car donation program in almost every major city in every state in the US, including California, Massachusetts, Minnesota, New Jersey, New York, and Michigan. There are no laws preventing charities from accepting these types of donations.
Some of the car donation charities you can see are: Target, Purple Heart, Kidney Foundation, Salvation Army, Goodwill Industries, and various cancer organizations.
In any case, you will benefit greatly from donating your charitable car, both to claim a nice deduction or tax benefit for car donation and to help charities continue to operate so they can help people in need.
