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Donating Your Car Helps Charity Organizations

Todays Date: December 17, 2018

Volunteering and donating are the most common things that people do to show support for their favorite charities. Donations can be in the form of money and/or goods. People usually donate food and used items such as clothing, shoes, furniture, tools and equipment. But what some people might not know is donating a car, old or unused, to charity is also possible and that they can get a tax break in return.

Charitable organizations do not discriminate. They will accept not just cars, but other types of vehicles as well, like trucks and vans. Old, unused or even damaged cars can be donated and put to good use. Some vehicles may be unsuitable for driving, but their parts can be sold and the proceeds used for other projects.

Donated vehicles can be fixed and given to those who are in need of their own transportation but cannot afford to buy even a used car. Having their own transportation is important for them because it enables them to access jobs, shops and schools. Commuting may not be an option for some, because their homes are too far from public transportation routes for this to be feasible. With a car donation, mobility is no longer an issue for them.

In some cases, the donated vehicles are beyond repair so that all that can be done is to sell them for parts and scrap metal. The charity can use the money from the sale in many ways. They can use it to fund other projects, offset operation costs or subsidize administration costs.

For the owners, a car donation charity is not their only option for disposing their old, unused or damaged vehicles. They can repair and sell the vehicles themselves, or they can trade them in a dealership. Both cases require a significant investment of time and effort for the owners.

Selling one’s car is not easy. One has to put up ads, answer inquiries, oversee test drives and try to close the sale with a prospective buyer. Car owners can try trading their vehicle in a dealership to avoid the inconveniences of trying to do the selling themselves, but they may never be sure that they are getting a fair price. Donating their car to charitable organizations is an easier process that gets them a tax deduction at the same time.

It is important for donors to get the fair market value of their vehicle, since the tax deduction will be based on this. However, if the charity is selling the vehicle, the tax deduction is equivalent to the amount that it is sold for. For instance, a car valued at $1500 but is sold for $1000 entitles the donor to a $1000 tax break.

Owners of old or unused vehicles know how they can be an eyesore and take up space in the garage that can otherwise be used for more productive purposes. Nowadays, the top options for disposing them are selling them, trading them or donating them. All things considered, a car donation charity may not be for everyone, but donors are assured of getting a fair value for their vehicle plus tax deductions and knowing that they are making a difference in other people’s lives.

If you have an automobile that may not sell for much, consider looking into donating an automobile to one of the available charities in your city or town. Finding a car donation charity is easy and will also count as a deduction on your taxes.

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