Auto Charity

2007-04-17 10:41:55

( Charity )



Auto charity or vehicle donation is the act of giving automobiles, such as cars, trucks or even boats, to charitable organizations. In turn, the organizations sell or auction the vehicle, with the proceeds going to their charity causes. However, since not all charities have vehicle donation departments, a third party organization can sell the vehicles for you and give the proceeds to the charity of your choice. These organizations are known as clearinghouses for car donations, which sell your vehicle, take a percentage of the sale as payment, and give the rest of the money to charity.

There are a number of advantages to vehicle donation. Compared to selling, auto charity provides you with an easier way to lose a car, especially if the car is damaged or is not running, while benefiting a charity organization of your choice. You just call your chosen charity or fill up a form on your chosen charity’s website regarding a vehicle donation. Most charity organizations offer to pick up your vehicle and handle all the processing and the requirements. You are generally only given some papers to sign for the donation to be completed.

Also, by donating a vehicle to charity, you are given a tax deduction. This tax deduction depends not on the value of the car per se, but on the amount the charity receives. If, however, it is used or given to someone who needs it instead of being sold, you will be given a tax deduction equal to the car’s value. Tax deduction is one of the reasons why auto donation has become a popular type of donation in the recent years. Several critics, however, oppose this, as they consider it a form of tax shelter.

Auto charity scams do exist, where the proceeds never reach any charity. Research on the charity you wish to donate to, so you can avoid these scams from happening to you.


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