When you contemplate buying a car (whether it's
previously owned or new), you're faced with the decision of what to do with
your old car. Often, trading it in means receiving only a fraction of its
value. Selling it through an ad in the newspaper or online is a hassle. Not
only do you have to pay for the advertisement, but you also have to endure
questions from potential buyers and make yourself available to people who want
to view the car or take it for a test drive. In addition, you assume financial
risks, in that the buyer may present you with, for example, a fraudulent
check.
Increasingly, car owners are choosing to donate their older cars
to charity. The process involved in a car donation is straightforward, and
gives the car owner the satisfaction of knowing that they are helping those in
need. Often, the tax benefit afforded the car owner as the result of an auto
donation exceeds the benefit of the outright sale of the vehicle.
A
variety of charities are embracing car donation as a way to support the
important and valuable work they do to help adults and children who are less
fortunate. Many charities have seen donations fall off, as donors instead have
contributed to disaster relief, such as efforts triggered by the tsunami in
Asia or by Hurricane Katrina. When you donate your car to charity, you are
providing worthy organizations with much-needed support.
Many of these
organizations provide services internationally to people in need. Often, a car
donation can go far in helping those who are most in need. You can be sure that
your auto donation has a significant impact when it is used to help the over
three billion people in the world who live on a meager $2 per day.
Your
car donation can help a cause you care about and help you reap the tax benefits
of auto donation. Whether your car is barely used or barely runs, you can still
help those in need and list the contribution on your tax return. Although you
should check with your tax preparer, you can typically deduct the full amount
that the charity receives for your car or $500, whichever is more.
When you decide to donate your car, the process is easy. For example,
Donate Car for Charity (www.donate-car-for-charity.com) lists five simple steps
you can take to make a difference in the lives of those who need the services
that charities can provide. In essence, they will help you determine the value
of your car donation, and all you have to do is complete an auto donation form,
provide the vehicle title, and arrange for your car to be picked up at no
charge. Then, you can reap the tax benefit from your car donation, and feel the
satisfaction that comes with knowing that you have made a difference in the
lives of others.
