Charity car donation

What is car donation?

It is the practice of donating one's old car to charitable organizations so that they can use the sale proceeds of the car to help a family in need. This practice has become popular due to the fact that there is a tax deduction available to the person who is donating the car. Under the IRS rules - a donor can claim deductions upto values less than $500 based on his own estimation even when a car is actually sold for less by the charity. This process has therefore become a sort of a tax shelter.

The objective of the charitable organizations is not only to provide a vehicle for transport but also to help the disadvantaged and financially disabled families become self-sufficient. There are many cases of families that have reported raise in self-esteem and hence were able to recoup from their money problems.

Many a family has spoken about their experiences on TV shows like Oprah Winfrey Show, CBS Morning News and People Magazine etc; On the other hand many donors also express their sentiments of being able to relate to those less fortunate people who do not have a vehicle especially in a society which has become car dependent!

Charity car donation programs are a win-win for every one involved. The itemizing vehicle donation taxpayers get a fair-market value tax deduction along with the "feel good factor" of helping another person in need. The people who buy a donated car at auctions get a car that would have otherwise headed for a junk yard. And of course the charities themselves generate valuable resources to fund their activities that help the society.

There are some guidelines to be followed by the donors before they can avail of the tax deduction. They have to submit the sale certificate from the auctioneers indicating the final sale value of their car which has been donated under the IRS rules. There are many charity car donation agencies such as Charity Cars, Donate Car USA, Give Cars. Every State can boast of many such agencies which help the needy donors as well as the recipients. A simple Google search for "charity car donation" will show thousands of entries all over the US which can be tapped for both information to dispose off an old car or if some one needs a car - find a decent car that helps in commuting to work or on business.

Of late, there has been a lot of debate on whether the tax deduction facility is being misused by people. Since the IRS was under this apprehension the latest guideline of people not getting deductions beyond $500 value has been put into practice. This has of course resulted in higher revenues to the government but has possibly put the donor owners at a disadvantage. They may not save as much as they could have done in the earlier times. However, the noble cause of donating a car for charitable purposes is in itself a satisfaction that many still continue to gain!