Car Donation and Tax Deduction

Are you planning to buy a new car? What do you intend to do with your old car? How about donating your car to a charitable institution?

For some years now, car donation in the United States and other developed countries is becoming more popular. People are starting to realize the value and nobility of the good deed to donate a car for the benefit of a great number of people.

Usually, old cars are sold to junk shops or are sold as second-hand cars. This way, the owner is able to generate a significant amount of money from the initiative. Some owners even give the old car to a relative or a family member who is yet to avail or buy a car of his or her own. But now, as mentioned, there is an option for car donation to a charitable institution.

There are several compelling reasons why car owners should do car donation. Of course, the top reason is humanitarian.

It feels great to help out other people who are in need. And there is no better reason to help others other than donating and giving funds, money and alms to charitable centers, which in turn, provide services and goods to the needy people.

If you aim to do good deeds, perhaps, car donation to a charity would be best. It is naturally not a very popular practice, but it surely is gaining a significant traction these days.

Car donation to a charity qualifies the donor to a significant and attractive tax break for the following year. If you are donating your old car to such an institution, it would be imperative if you would choose a charity that is an organization registered in 501(c)3. This would automatically provide you qualification for a tax shelter or break in return for the car donation you just did.

These days, you know how hefty taxes are. Wouldn't it be nice to earn good discounts?

If the car is too old and is qualifying for a junk shop, donating it to the charity would way be better. That is because you are basically giving what to you is junk but what other people can consider and treat like gold.

Charitable institutions accepting old car donations do not have preferences for such car donation. That means, any condition and appearance of cars donated to them, they likely and fondly receive. Do not expect to get any amount of payment or compensation for the car. Remember, you are donating a car, not selling it.

Some charitable institutions also provide many incentives for car donation. For example, some companies give alms to charities in the form of discounts to purchases of their products and services. In turn, the charities use such provisions, with consent of course, to reward and lure car donors. That way, the volume of car donations can significantly be bolstered.

There is much recognition accorded to old car donors. While it is true that people who donate should not expect anything in return, not even publicity for the good deed, most charitable institutions make it a point to advertise and make public lists of donors. This is their simple way of thanking generous people.

About the Author:

Alex Baumm. If you want other people to draw inspiration and queue from your good example, surely, Car Donation is for you. Learn how to Buy a New Car at our forums.