Volunteering and donating are the most common things that people do to show support for their favorite charities. Donations can be in the form of money and/or goods. People usually donate food and used items such as clothing, shoes, furniture, tools and equipment. But what some people might not know is donating a car, old or unused, to charity is also possible and that they can get a tax break in return.
Actually, any old or unused vehicle – trucks, vans, SUVs – can be donated to charity. Even if they are no longer running or in need of extensive repair, charitable organizations will still take them and put them to good use. They can either fix them then give them to deserving families or individuals, or they can sell them and use the sales proceeds 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.
Some people might say that donating a car to charity is not the only option for people who want to dispose of their old, unused or damaged vehicles. That is true. However, the two most common alternatives, selling their car themselves and trading them in a dealership, requires a significant amount of time and effort from vehicle 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.
Charities can help donors understand how the tax break process works, but a simple rule of thumb is, the tax deduction is based on the fair market value of the donated vehicle or the amount for which the charity is able to sell the vehicle. For example, a donated car is evaluated at $1000, but if the charity is only able to sell it for $800, only $800 is tax-deductible.
An old or unused vehicle can be an eyesore and takes up a lot of space in a garage. One option for disposal is donating to charity. A car donation charity will take in any kind of vehicle, unlike dealerships. Damaged or not, running or not, they are able to find uses for this kind of donation and make a difference in other people’s lives.
Should you have a car that may not sell for much, why not look into donating a car to one of the available charity organizations in your area. Finding a car donation charity is easy and will count as a deduction on your taxes.