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Identifying Charities Which Allow One To Donate Car

Identifying Charities Which Allow One To Donate Car

While there are a number of charitable organizations to which one can donate car, there are also specific guidelines one must follow if one wishes to receive a tax credit for same. For, when it comes to such donations, both individuals making such donations and the charity to which such donations are made often benefit. As such, the charity can generally sell such a vehicle for a profit, whereas individuals making such a donation can often receive a tax credit.

Of course, before donating a vehicle, one may first want to understand the process. Although, all one really needs to know is that when one donates an automobile, one is giving away a no-longer wanted vehicle to a charitable organization who can then either sell or fix and repair the automobile for use in the organization. Of course, in some instances, such organizations may be teaching automobile repair which can also use donated automobiles in various training programs.

Although, charitable organizations are not the only one who benefit from such transactions. For, often those who donate vehicles receive a tax credit in exchange. As such, one can then add any vehicle donations to all charitable contributions which one has made during the current tax year.

Still, while car donation advertising has become more prevalent and more individuals are considering donating vehicles more than ever before, there are a few steps which an individual must take before one can receive a tax deduction for a donation. For example, donors must meet specific post-donation requirements in order to qualify to receive a deduction. However, if one simply needs to get rid of an older or non-working car to make space and has no need for a tax credit or deduction, many charitable organizations are still more than happy to take such an automobile as a donation without issuing such a credit.

Although, there may be others who have no need for such a tax deduction but need to rid oneself of an old automobile or automobiles. As such, one can often donate a number of vehicles and other items to various charities without requesting such a credit. However, unless one has written proof of such donations, one is not going to be able to request a tax credit or deduction for the current tax year.

Also, if any one vehicle is worth less than five hundred dollars, then the owner must provide an estimate of the value which can at times be more than the charity may receive in such a sale. Of course, deductions of greater than $ 500 are limited to the amount such a charity may receive for the vehicle whether at auction, for junk metal value or on the open market.

Actually, this law did not take effect until 2004 when the American Jobs Creation Act took effect. After which, the rules for estimating such vehicle values changed. As such, new limitations were placed on those making such donations. After which, the law pertaining to tax credits for such donations were changed to reflect such that one can now only receive a tax credit equal to the proceeds received off such a donation.

To this end, while some critics have suggested that to donate car only act as a tax shelter in many cases, charitable organizations have often come to rely on such donations in order to maintain operation. As such, this type of donations has become quite popular since 2000 when over seven hundred thousand United States taxpayers donated cars which equated to a reduction in taxes of over six hundred million.

Get inside information on how and when to donate your car to a charitable organization now in our guide to all you need to know about donating a car .