Donating Car Charity Home Page
How a donating car charity will use your car…
Considering donating your a car to charity? You could donate your old car to a charity and receive a tax deduction instead of selling it for a low price to a car dealership.
Donating a car to charity provides several advantages to the donor. Besides the obvious benefit in supporting the charity of his choice, he is rid of a vehicle that is perhaps not saleable or which is worth as much as a tax write-off as it would be if sold. In turn, the donating car charity can either use the donated car for its own uses or sell it, with sales often handled by specialists that offer their services to a donating car charity that has received too many cars to use itself.
When a donating car charity constantly solicits for cars…
chances are that they are indeed selling the cars so that they can finance their charitable activities. However, the charity may actually receive only a fraction of the car’s real value from the sales agent or auctioneer. This is a legal and accepted practice; however, a donor who is truly interested in supporting the activities of such a donating car charity should be aware that his donation really provides very little to the charity. Charities which sell their own cars may receive far more for their efforts. Since only the sale price of the car can be deducted from the donor’s taxes, a car donating charity which takes the time to obtain fair market value for donated cars is far more beneficial for the donor.
If the car is used by the charity for its own activities, then the donor can deduct the accepted value of the car on his tax return. This value is determined by the donor, and must be substantiated by verifiable information or independent appraisal. The latter required for donations of cars valued above $5,000. Only a donating car charity that is eligible to receive tax-deductible donations can issue the necessary acknowledgement and receipts for deductions, regardless of whether the car is sold or retained by the organization.
Cars that are used by a donating car charity for its own activities are usually …
vans or larger cars in better condition, as these vehicles are useful for pickups and deliveries of equipment. Vans are of particular use to charities which service disadvantaged children, as they are easily used to take groups of children to or from school, summer camp or excursions. They can also easily be modified for use in transporting disabled beneficiaries of a donating car charity.
Choosing a donating car charity which truly appreciates the donation and is not just collecting mass donations of cars for sale by an agent is the best way of making sure that a donated vehicle is really providing meaningful support to a valued cause. It also ensures that the recipient will receive a tax deduction that is as close as possible to the value of the car on the open market. Donors who are considering giving a car to a donating car charity should carefully check the reputation of the organization, and should inquire as to the use to which the vehicle will be put.
Selling donated cars to provide cash for activities is legitimate, but donors should be aware that the money obtained by the donating car charity might not equal the actual value of the car.
- A Donating Car Charity pick-up service will collect your vehicle swiftly