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Why You Should Donate A Car

by: RayLam
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Word Count: 508

Donating a car is one of the most unique and easy ways to give back to the community. If you have a vehicle that you are not using, why not donate it for a good cause? Read below for what to donate, the why you should donate, the where you should donate and how you should donate your unused vehicle.

Perhaps, the greatest benefit of giving your car away, as a car donation, is that you will be helping out a charitable organization that needs it. Many of the receivers of donated cars are non-profit organizations. These non-profit organizations often work to help those that are in need. For instance, many cities have local food pantries. Volunteers may not only need to collect food, but deliver the food to those who need it. Without a vehicle, volunteers may be unable to complete all of their tasks. Your car donation could prevent that from happening.

Furthermore, you do not have to spend the money to get your car towed to a lot. You do not have to place an ad in the paper and wait around for people to call or visit your less than perfect automobile. When it comes down to it, selling an old car requires effort. If you are in the position to part with your car and the money that you might make on selling it is minimal, you might just simply choose to donate it.

Speaking of money, one of the great benefits of donating your car to charity is that you are eligible for a tax deduction. In the United States, if you donate to a charity classified with the IRS as a 501(c)(3) charitable organization, you may be eligible for a tax deduction. Before donating your car, it is useful to know the fair market value, which can be assessed by using one of the several guidebooks on the subject.

Also, be clear on what your charity will do with the car, as it will make a difference in your tax break depending on whether the car is resold or broken down for parts. Taking the time to speak directly with your chosen charity will answer all your questions and give you a good idea of how they operate.

To prevent over-estimate, the IRS requires people who donate their car to produce a document from the charitable organization specifying the resale price of the car after the car is sold off. Automobiles with retail values up to $500 are exempt from this rule. In any case, make sure you get a receipt detailing your car donation. Requesting a receipt may also be necessary if you have your taxes prepared by a paid preparer.

Donating a car may sound like a big undertaking, but it's not. You can accomplish three things at once - getting rid of an old car that is taking up valuable space, helping your favorite charity, and getting a deduction on your income taxes. If you have an old car and want to reduce your tax payment, donating a car might be right for you!

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About the Author

Learn about car donate by visiting http://car-donation-advisor.info and get a FREE limited report on "Car Donation Programs" by visiting http://car-donation-advisor.info,a website providing free advice on how to donate your car

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