Auto Donation

Auto donations can help the disadvantaged and needy by giving them reliable transportation for their employment needs. Those truly in distress have needs that are crucial to whether they will be able to take the simple step of getting a job to improve their situation and eventually become self-sufficient. An auto donation also helps the vehicle owner in that the owner will get a tax break for donating it. The donating process is simple and there are hundreds of charitable organizations who are willing recipients of the car for non-profit purposes.

It is important for several reasons to donate a car with care to assure the charitable nature of its end-use. The "wolves in sheep's clothing" saying is very prominent in the charitable organization field, and organizations who accept auto donations must be researched carefully in advance. If the auto donation is intended to be used for tax deductible reasons, the receiving organization, the agreed value, the end-use, and the accompanying paperwork must all meet IRS guidelines. The "wolves" are "for-profit" companies who portray themselves as non-profits with numerous references to "helping the children." Their play on sympathy is often a ploy to soft-hearted folk who have a legitimate car to donate that in the end is misused and any tax deduction anticipated becomes void.

In order for donated cars to truly help the disadvantaged, it is important to find well-established organizations that spell out their intended use and have verifiable non-profit credentials. It is important to find out what will happen with the auto donation if it has no resale value. Recycling programs are not the same as donating a car. However, they can benefit those unqualified to receive a tax deduction but want the advantage of free pick-up for the vehicle and perhaps some other benefit. Curious "benefits" include such deals as receiving a travel vacation package to tropical locations in exchange for auto donations. It is important to note that "recycling" is NOT the same as donating a car and is excluded from use as a tax deduction or other non-profit donation benefits. For-profit companies may not fully disclose the disposition of the vehicles. Although they will indeed make a contribution to some needy person(s) or a disaster relief fund, they usually retain the lion's share of the receipts with perhaps 10% going to the relief efforts.

Justifying covert behavior for a semi-good reason is not possible with God. He has dealt with such humans over the history of the world, and will do so again. His warning to "the wolves [in the land that is not cleansed] ravening the prey, ... to get dishonest gain. ... [who say], 'Thus saith the Lord God,' when the Lord hath not spoken. The people of the land have used oppression, and exercised robbery, and have vexed the poor and needy; yea, they have oppressed the stranger wrongfully. ...Therefore, I have poured out mine indignation upon them, I have consumed them with the fire of my wrath," (Ezekiel 22:27-31).

Automobile donations can provide a vehicle to an individual or organization in need of transportation, and is an excellent way to provide assistance to an organization, when it is difficult to find the time or money to donate. When an individual makes a car gift, they are often eligible for a tax break that is equal to the market value of the automobile that has been donated. Car gifts are a great opportunity to give back to the community and organizations that have a need for assistance.

Many organizations that accept car gifts use cars, trucks, vans, and other vehicles to provide medical care or assistance to people in need. Also, many automobile donations go to individuals that are impoverished and need a way to travel to work or school. An automobile donation allows a person to provide a vehicle to an organization or person in need.

This uncommon donation is a great way to give to a charity when donors may be lacking in time and money. Older cars that need repairs but are otherwise in good working condition will be accepted by most charities. Arrangements will be made for the automobile donations to be picked up at no cost to the donor. This provides a way to get rid of a car that is no longer needed and gives the organization a vehicle to use for any purpose.

If the humanitarian value of a car gift is not enough to persuade the giving of a car to charity, the tax deduction is a great incentive. When a car is provided to a charity from an individual, the individual can use the market value of the car as a tax deduction for charitable giving. An automobile donation allows the individual donor an opportunity to receive money back for donating an old or useless car.

Organizations that provide services and necessities to individuals throughout the world can benefit from the gift of a car. An automobile donation offers the donor a chance to give something back when there is little extra time or money to spend with charity work. Also, using automobile donations as a tax write-off is motivation enough to donate a car, truck, or other vehicle to a charitable organization. Charity is a great gift to provide to organizations and individuals. "I have shewed you all things, how that so labouring ye ought to support the weak, and to remember the words of the Lord Jesus, how he said, it is more blessed to give than to receive." (Acts 20:35)

Tax Deductible Car Donations

Tax deductible car donations are an excellent way to help a person save some money on his personal tax liability when filing his yearly income tax return. A tax deductible car donation will not only save the taxpayer money, but also provide an opportunity for him to give to the charity of his choice. The double benefit makes this a popular means for many American citizens to lessen their tax liability while at the same time providing finances to the charity of their choice.

According to the IRS, two and one half billion dollars of tax deductible car donations were made in the year 2000. There are many charitable organizations in the United States that solicit these contributions to meet the needs of their philanthropic outreaches. Some of these are organizations that benefit cancer research, the blind, at-risk kids, both kidney and lung foundations, animal rights groups, veterans groups, and many more. A contribution can provide much-needed funds for these and other non-profit organizations. The work accomplished strictly because of this generosity is vast. With many citizens using this means of giving, the strides made in disease-related research alone is enormous.

Care should be given when researching the charity to which a person makes his tax deductible car donation. Check out the financial statement of the organization. If the group does not use its funds appropriately, do not consider them for a donation. Research how the money is spent. New laws have made it possible to receive the full retail value of a donated automobile in some instances, but it is important to be aware of which charitable organizations are considered qualified organizations according to the IRS. IRS Publication 78 lists acceptable charitable organizations. Contributions should be prefaced by certain questions for a chosen organization, such as, how much of the proceeds of the sale of the tax deductible car donation will actually get to the charity and how much is used up in administrative costs.

Non-profit and charitable organizations highly desire tax deductible car donations; therefore, many organizations will offer free pick-up of the automobile donated. Not only are cars accepted, but also trucks, boats, trailers, and recreational vehicles. Proverbs 18:16 says, "A man's gift maketh room for him, and bringeth him before great men." Making a contribution of a vehicle is a beneficial act that provides reward to both the giver and receiver. The benefits go both ways and help build up God's kingdom.

Car donations tax benefits are the main reason most people donate their cars instead of selling them or trading them in for another automobile. Currently the car donation tax benefit is available only to those that itemize on their federal income taxes. Determining the exact car donations tax benefit depends on the organization chosen and what they do with the car. Some organizations auction the auto to the highest bidder, while others give them away to people who otherwise could not afford a vehicle to get to and from their place of employment. Most of these sites are non-profit, 501(c)(3) organizations.

According to IRS law, an individual can only use the deduction benefit if their gift is to a section 501(c)(3) non-profit organization. These organizations are legally allowed to receive and distribute vehicles for the purpose of raising funds. Car donations tax benefits are only available if a gift of a vehicle is made to a charity that has complete control and discretion over the disposition or use of the vehicle. Charities that outsource their fundraising departments are therefore ineligible to grant a car donation tax benefit. Be sure to find out exactly how much control the charity has over the distribution of cars received before donating.

In order to actually receive benefits, a donor must receive written acknowledgement of the contribution from the charity. The car donation tax information can be on paper, in email, or facsimile form. The donor then must be itemizing for that year and file Form 8283, noncash charitable contributions, to report information about all noncash contributions if donations exceed $500 during any given year. If the car donation tax benefit is below $500 and there are no other noncash donations to any other charities, then no form must be filed. Beyond a tax exemption benefit, giving to a charity is a Biblical mandate. "I have shewed you all things, how that so labouring ye ought to support the weak, and to remember the words of the Lord Jesus, how he said 'It is more blessed to give than to receive." (Acts 20:35)

The United States government has passed a new law as of January 1st, 2005 that states; if donors donate vehicles to a non-profit organization that auctions the autos, the car donations tax benefit can only be the amount the car was actually auctioned for with a $500 minimum taxable deductions to the donor. Otherwise, if a charity gives the vehicle to a family in need, a full market value benefit can be received by the donor. If donors have any other questions or would like assistance in filing taxes, they should not hesitate to contact the IRS. The IRS can be accessed via the web or by telephone. If donors are looking for information from individual states, they will have to contact the State Treasury Department to get the specifics on laws regarding the law on specific deductions in their home state.





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