Want to donate your car to charity? There are many reputable car donation charities that accept car donations directly. Now before that, you must first understand the benefits of donating a car and also the best way to donate a car to charity. Before 2004, the main reason behind this was getting a fair deduction in Tax payments. So, donating a car for tax deduction is not new. But do you know how much tax deduction do you get for donating a car?
Earlier, people used to get deduction of thousands of dollars by donating their car to charities or auction. Congress came forward to limit this tax deduction. Then the act i.e. American Jobs Creation act of 2004 was passed. This act limited the tax deduction amount on donating car, boat, truck or plane to $500. Cars easily get the values between $30 to $50 at auctions or charities. After the act, it is not going to give you tax deduction much. So why you should donate your car to charity? There are some significant advantages to look upon. Let me clear you by elaborating why people still donate their cars.
Why donate a car to charity (Benefits & Tax Deductions)
Make a true charity
Main reason to give your car to a charity is surely to support the work of charity. Charity itself means donating without expecting any returns. If you are person who thinks from heart you can easily understand how the car can help people who are working with this charity.
Provide vehicle to the charity
When you donate your car to the charity they get a vehicle which they can use for many charity purposes. They can take sick people to the hospital during emergency, without having to wait for the ambulance. They can also use your car for delivering meals to old people. Car will be very useful in many charity missions to transport anything anywhere.
You can also think upon giving your car to a charity which trains young generation about car mechanic. Also they can avail free charity cars for disabled. There are number of such purposes which need a vehicle. Many a times, charity people feel helpless without a vehicle for transporting. You can encourage their work by giving a helping hand with the donation of car. It is far better that your car will be used for good purpose rather than rusting in your garage.
Tax deduction for donating a car
As I told you earlier, the act of 2004 has limited the tax deductions for car donations, but then also you can get fair deduction in your tax payment amount. If you donate your car which has value over $500, and then if charity sells that car, you will get a receipt documented by the charity in name of donor. They have to specify in the document that the car will be used for charity purpose. If your car is particularly used for charity you will get a certification stating the use intended and the time of use. Charity has to wait for this period for selling the car or exchanging it.
Hassle free job
You don’t have to waste your time in placing ads in the newspapers to get a buyer. You don’t have to tackle those bargaining buyers. In all you can avoid hassle of selling your car.
So now you know why to donate a car to charity. I recommend you to cross check the charities before donating your car. Just call the trustable charities that accept car donations directly. It is a good purpose and you must think over it with the factors I mentioned above. It will never be a loss for you!