Donate a Vehicle: Why Not?

2007-03-08 10:33:40

( Charity )



There is a mass drive for citizens to donate a vehicle for charity and other institutions that cater to solving social problems. This call is for automobile donations, wherein citizens are encouraged to donate a vehicle to support a cause. The vehicle could be an old car, truck, motorbike, even a yacht.

If you are thinking of selling or getting rid of an old car or equivalent, you might want to look into how you could donate a vehicle to a reputable charity institution. Other than being able to help your favorite charity or social cause, there are actually some advantages if you decide to donate a vehicle.

If you donate a vehicle, you will be entitled to an IRS deduction. The deduction is equivalent to the gross proceeds the charity institution makes out of your donated vehicle. Unlike if you sell your automobile, you will have to pay taxes in return for the sale that you make on top of the taxes that you need to cover already. If you donate a vehicle, you will be able to save some money for yourself by reducing the taxes that you need to pay in the first place.

In addition, it is more convenient than selling an old car. The institution’s representatives arrange a towing company to pick up whichever vehicle you are donating, and they let you know of the schedule of the pick up and even give you a receipt afterwards. If you are to sell an old car, usually you have to bargain for the towing and shipping expenses especially if the buyer lives in a far off place. You will be able to conserve your time and energy.

Moreover, you will be able to save yourself the hassles of looking for a buyer and negotiating the price you are willing to sell the car for, and then transferring the title certificate and then computing the tax. You will not be receiving any cash or payment from a buyer, but you do get a tax cut, which is also credit in your cash flow.

Just a reminder: if you are considering in supporting this kind of charity work, you have to scrutinize closely the institutions that ask you to donate a vehicle. Check their track record, check if they issue receipts, and confirm that they are listed as a recognized non-profit organization.


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