How Car Donations Can Help You and Your Community

After the 2004 American Jobs Creation Act, tax donations for car donations became limited to by how much the vehicle earned the charity that received it.

This closed a popular loophole where a car donation couldn’t produce inflated tax deductions. Of course, when people stopped getting the huge tax benefit for their donations, it changed the way they thought about giving these gifts.

Of course, people who donate their vehicles can still earn a sizable tax deduction. More importantly, there are plenty of other ways that car donations help you and the community besides saving on tax day.

You Can Support A Charity

You have complete control over where you donate your car. That means you can pick a charity or non-profit organization that does work that you support. Oftentimes, people want to bolster their favorite charities but don’t have the extra cash to donate. Your car donation can help your selected organization in a number of ways.

Your Favorite Charity Can Go Mobile

Many charities need reliable transportation to help fulfill their organization’s mission. So long as the car donation is usable, charities can use it to do things like deliver meals, help people run errands, and more. Local vocational schools and community colleges can often use car donations to help teach and train their students.

The Community Gets Affordable Transportation

Many charities will resell or give away your donated vehicle to families in need. The ability to obtain affordable and reliable transportation is a game-changer for many at-need groups. Imagine being able to easily drop the kids off at school, make it to work on time, attend medical appointments, and more without counting on unreliable public transportation. That is a win for everyone in the community.

Avoid The Hassle of Private Sales

Selling your car yourself might seem like a great way to get some money out of your old car. The problem is that the process is hardly straightforward. You have to prepare the car for sale: wash it, make repairs, take photos, list it online, pay for advertisements, etc. Once the car is for sale, you now have to deal with showing it to stingy shoppers, dealing with low ball offers, and trying to keep in touch with potential buyers. By the time you finally sell the car, it’s hard to say if the cash was actually worth your time.

Many charities are even able to take your car donation if you can’t find the proper title. They may not be able to drive it or sell it, but they might be able to get money for parts, etc. In some cases, the organization will even come to pick up your donation at no cost to you.

It’s a Win-Win

While you may not be able to claim some outrageous duction on your taxes after making a car donation, there are still plenty of benefits to blessing your favorite charity. You can still earn a tax deduction while helping a needy charity continue its work.

If you’re not sure if donating your car is the right option for you, check with your favorite charities to see if and how they can use that kind of gift. You’ll be surprised at how easily a simple donation can positively impact the face of your community.