Donate a Vehicle: 5 Feel-Good ReasonsDecember 24, 2014
When you donate your car, you not only help a family in need – but there are beneficial tax implications to help you, the donor.
Value is Less than $500
Donating a vehicle is a great way to get rid of an unreliable or unwanted car and still get money back. When a vehicle is donated to charity, the donor is able to claim a minimum deduction of $500. Vehicles that don’t run, or only serve to take up garage space, are frequently donated for this reason. Charities that take car donations should provide a tax receipt letting the donor know the amount that can be deducted from their taxes. Check the IRS publication for car donorship or call Vehicles for Change to get more information.
Avoid the Hassle of Selling
Selling a vehicle can be a frustrating process. The vehicle needs to be advertised and kept clean for potential buyers. Sellers may struggle to find anyone interested in the vehicle if it is old, has frequent car problems, or doesn’t run. Hagglers make selling cars difficult, especially when there is a difference in opinion about a vehicle’s value. To avoid undue stress, vehicle donations make getting rid of unwanted cars easy. Moreover, advertising a car for sale can attract the attention of criminals.
Fund Charity Causes
Donated vehicles have many uses. Some are used by the organization, others are given to low-income families in need of a vehicle, and some vehicles are sold or auctioned off. Many charities accept vehicle donations to help the charity raise funds. When vehicles are sold, the money used from the sale helps fund the work. Charities use these funds to run programs designed to help children, veterans, the homeless, and more.
Help Those in Need
After a car owner donates a car, he or she often has little say on how it is used. While many charities use the car’s value to fund programs, some charities, such as Vehicles for Change, take the vehicle and fix it up for low-income families. The donated vehicles go through an inspection process to check for problems or safety concerns. After the vehicle is deemed safe, it is given to a family in need. This empowers people and families who need a car to get to work, go to school, or visit a doctor.
Tax Deductible Donation
Being eligible for a tax write-off is one of the best reasons to donate a vehicle. To receive a tax refund, there are several things the donor must be aware of. First, the vehicle must be donated to a tax-exempt organization with 501 (c) (3) status to qualify. Secondly, the IRS places limits on tax return refunds, so the donor should be aware how much he or she can expect out of the donated vehicle.
Contact Vehicles for Change for more information if you are interested in learning about car donation.