It used to be a much simpler process donating a used vehicle to charity. You would select a creditable charity, claim the old car’s fair market value, which is the sum a potential buyer would be willing to pay for the product, and arrange for it’s transportation. Nowadays the process is a bit more involved, but that doesn’t mean you should write off the idea of donating your old vehicle. There are several relevant reasons why it still makes sense – economically and otherwise to donate a used vehicle to charity.
You Get a Tax Break
To start with, while taxpayers can no longer site the fair market value on the car, you still do benefit financially from the gift. Now, the exact tax break depends on the donor’s attested value of the donation and how the charity uses the vehicle. This may vary depending on whether the charity uses the vehicles to help fulfil their mission, such as using it to deliver meals to the elderly. It could also mean a completely different deduction amount if the car goes to auction and sells below the price you would have expected it to bring in. Either way, you will reap the benefit of a tax reduction when you make the donation.
Your old clunker is sitting there in your garage leaking oil or is parked on the lawn thus making a patch of grass brown. Neither of these scenarios are ideal and provide incentive for you to get that car off your property and donate it. The responsible thing to do is make sure that your vehicle is disposed of environmentally and all recycling centres are required to that. If your car has reached the end of it’s useful life, then donate it to a charity that will make sure it is treated legally; without any harm to the environment and recycled at the highest standards.
Because You Have a Good Heart
Yet another good reason to still donate your old vehicle is because you don’t have the cash, but you still want to give back to your favourite charity. Ultimately, we should be driven by our desire to be generous without the expectation that we will get something in return. Knowing that your donation helped change lives is the greatest reward and there are many organisations that can assist in making sure your vehicle donation is maximised. There are also many step-by-step guides that can help you make informed giving decisions.