A charity car donation is a wonderful way to help a non-profit organization in raising funds or providing vehicles to those who are in need of transportation. There are many benefits for those who participate in a donor drive for automobiles such as receiving individual tax relief. "And whatsoever ye do, do it heartily, as to the Lord, and not unto men; Knowing that of the Lord ye shall receive the reward of the inheritance: for ye serve the Lord Christ." (Colossians 3:23-24) Many non-profit, charitable agencies that receive charity car donations can steer donors easily through the entire legal process in order to achieve both a tax exemption as well as the satisfaction of helping some important cause. Those who have an old auto but are just not sure what to do with it may want to consider donating it to a non-profit group. Providing a charity car donation might be more economical than actually selling an old or second auto because this allows donors to receive a deduction on their year end taxes. Before putting a "for sale" add in the paper or before taking an old vehicle to a dealer for a trade in, consider offering it to help an organization touch the lives of those in need. Accepting multiple vehicles can help a non-profit agency with their yearly budget, and if there are enough charity car donations annually, then there may be no need to schedule other fund-raising events.
The tax deduction for donated vehicles is, within limits, the fair market value of the auto being donated. The Internal Revenue Service must approve any non-profit organization that accepts car donations. Anyone considering donating an automobile should thoroughly research which charitable organizations follow the tax laws and are approved by the IRS. Only those organizations approved by the IRS can issue a valid income tax deduction for charity car donations. Donated vehicles must be itemized deductions detailed on a Schedule A of the Income Tax Form 1040. However, there are limitations for a charity car donation and the IRS has issued a published guide for anyone wishing to be involved in a donation program. This guide is Publication 303, "A Donor's Guide to Car Donations".
Most non-profit organizations that accept donated vehicles are honest, but fraud does occur in some programs. A person who is considering becoming an automobile donor should ask questions about how the money is raised and where it will be allocated by the group. It is also advised that those who are donating a car to a charity group that is not nationally known should obtain references from the group. Reputable charity car donation programs are happy to provide this information to any prospective donor in order to subsidize many worthy projects.
