Best Ways to Donate a Car
Automobiles for Charity
In the past few years, however, more and more donors are attempting to help themselves, and help others, by donating their used automobiles to charity. This has become a massive business. In the year 2000, nearly ¾'s of a million people took a car donation deduction on their federal tax returns, thusly lowering their taxes by over $650 million.
As America's car donation system is currently construed, it is easy for donors to benefit greatly by donating their cars, albeit with a little risk.
American Jobs Creation Act
You can no longer automatically deduct the Fair Market Value of your vehicle. President Bush signed the American Jobs Creation Act into law which reduced the deduction allowed for vehicles donated to most charities after December 31, 2004. Donations made to this and most other vehicle donation programs are now being valued at what the vehicle is sold for or a maximum fair market value of $500 if sold for less than $500. More information and text of the law is available by clicking here. You don't have to use the Kelly Blue Book to try to figure out what the car is worth. Please refer to your tax advisor for specific tax advice.
Auto donations
Auto donations have become an effective way for many charity and non-profit organizations to draw financial assistance from their communities in helping the less fortunate. Although auto donations are designed to benefit those that are having special hardships in life, an auto donor usually receives some benefits as well. Since the auto donation idea has caught on because of its success, there are many organizations throughout the Internet that request your help through auto donations. You can meet someone else's need simply by donating your used car to your favorite charity.
You should be able to find some non-profit cause that you are inclined to support as you browse through many auto donation web sites. Some organizations sponsor auto donations as their only source of fund raising and others sponsor auto donation options along with other charity fund raisers. Any non-profit organization that sponsors auto donations is regulated by law and adheres to IRS requirements which protect the donor from scams or poorly managed organizations. An auto donation has become a very productive way for charities to help the targeted cause they represent.
Auto donations are sponsored through charities that raise money or provide vehicles for needy recipients within a targeted group. Your auto donation can help the blind, disadvantaged children, the disabled, cancer victims, those who face financial hardship and other groups within communities who desperately need assistance in some way. Since auto donations are donated, any donor will receive a tax write off not to exceed $500 at the time of donation. If the car is sold for a higher value, charitable organizations can provide you with a written statement for the amount and you may apply the credit toward your income tax.
If you wish to donate a car, truck, RV, boat, plane or any other vehicle, online forms are available through many auto donation sources. You may submit the form and receive an early reply with most vehicles gladly excepted. You can usually expect a tow service provided by the auto donation charity to pick up your car within 2 to 5 days. If possible, have the car title ready and any other paper work required. Auto donations are easy and quick to accomplish through most online charity groups. You may choose between a vast array of causes that you wish to support. "Beloved, if God so loved us, we ought also to love one another." (I John 4:11)