If you have a vehicle that is just sitting in your driveway or are looking to purchase a new vehicle and are unsure what to do with your old one, you may want to look into donating your vehicle to a charitable organization. Vehicle donation allows you to donate your vehicle to charitable organizations that can repurpose it, sell off scrap metal, and use it for transporting goods and services volunteers. Not only will you be doing something good with your old vehicle, you may also be eligible for a tax benefit.
Vehicle Charity Donation
If you are considering donating your vehicle to charity you will want to do your homework on the organizations you are considering donating to. There are a wide variety of different vehicle donation organizations to choose from, including professional not-for-profit local and national charities. You can also choose to donate to local organizations including scrap metal yards and other salvagers who establish or support certain charities. Your donated vehicle may be sold for cash that can be used for supplies, staffing costs and resources for the charity. Your vehicle donation can support a charity in a variety of different ways including transporting goods and volunteers.
You may want to donate your vehicle to a specific charity based on personal reasons, or you may want to determine what charity returns the highest amount of the donated vehicles income to their organization. Look for a charity that will most effectively use the money from the car, rather than spending the majority on administrative overhead. Some of the most popular charities that accept vehicle donations include Goodwill, American Cancer Society and Salvation Army.
Tax Deductions
Donating your no longer needed vehicle is not only a positive thing to do personally; you can also be rewarded financially. Donating your vehicle is easy, but in order to get the right tax deduction you will need to meet the post-donation requirements to qualify for any sort of vehicle donation-related tax deduction. Some of the requirements that you will need to obtain include written acknowledgement of the vehicle’s sale and profit issued by the charity. If your donated vehicle is valued at less than $500, you can estimate the car’s value. It is very important to look into all of the rules and restrictions that apply to having your donated vehicle qualify you for a tax deduction. Check with the Internal Revenue Service website to ensure what your options are for vehicle donation and what deductions you qualify for. Deductions that are valued at more than $500 are limited to the proceeds that are raised when the vehicle is sold. If your donated vehicle is valued at more than $500 you are required to attach the charity’s acknowledgement of that value on your tax return.
Donating your old vehicle can help out your local community charity or larger charitable organizations in a variety of different ways. You may also be eligible for a tax deduction based on your vehicle donation. If you are interested in donating a vehicle that you no longer use look up charities that are accepting vehicle donations to find out which one you would like to support.
