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Alternative Car Donation Methods

Many people think that you have to donate your car to a well known charity or organization in order to take advantage of the income tax deduction for the car donation. However, in reality there are many places that you can donate your car that are not well known but still qualify for the car donation income tax deduction. In fact, these car donations will allow you to take more of a deduction as well as really help someone in need.

The first alternative car donation method is to donate to a church that helps its members. You can donate your easily repaired or fair condition car to the church, who will then give it to someone in the congregation in dire need of reliable transportation for work and family. If you donate a bus or van the church may opt to keep the car donation to use in offering transportation to those who would not otherwise be able to come to church or church functions.

The second alternative car donation method is to donate to a women's shelter or homeless shelter. These shelters help people get back on their feet after horrible events or difficult circumstances. These shelters are most likely to use your car donation to provide a needy family with the transportation that they need in order to gain employment and take care of their families.

More traditional organizations that accept car donations typically sell the car donation. In these instances you only get to claim a percentage of the amount that the charity received for the sale of your car donation. This is likely to be a very small amount.

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When you use alternative car donation methods and the church, women's shelter, homeless shelter, or other organization keeps the car donation or gives it to a needy family you will get a larger deduction for your car donation on your income tax return for that year. In these instances you are allowed to claim a percentage of the full fair market value of your car donation. (The percentage is based on your tax bracket.)

As you can see there are many ways that you can use car donation to get the best deduction on your income tax return. You can also use your car donation to really help someone in the community rather than add to the already full coffers of a large charity.


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