A donation is a noble act, and when done consistently it can become a good habit. Donations can be in the form of cash to your favorite cause, or clothes to an NGO. You can even donate your car to charity. This does not mean you will relinquish your vehicle to another person; instead, the charity can use it for their purposes.
Here are some facts about automobile donations.
When Should You Donate?
You can donate a car to charities when you do not have any use for it. For example, instead of using your old car for a trade-in when you buy a new one, you can give it away to an organization you prefer.
There is no fixed time to give away your used auto, as you can do it any time. Still, if you want to plan with reference to tax exemptions, then your lawyer can advise you on the right timing.
How Does It Help?
When you donate your vehicle, the charitable organization may use it for transport or for moving various goods. They can also sell them at affordable prices to war veterans, thus saving you time and effort of selling it yourself.
The charity may sometimes sell it by bulk quantity, or sold by an automobile dealer to raise funds for charity. The dealer only pays a flat rate per car to the organization, though.
What’s in It for Me?
Apart from contributing to a good cause, you also get monetary benefit when you donate your vehicle. For instance, if the organization uses the vehicle, or if it gives the vehicle to the needy, then the exact market value of the vehicle is your tax deduction. On the other hand, if the dealer sells it, then the deduction you get is equal to the amount the dealer buys the vehicle.
Donating is certainly a good, heartwarming gesture, but it does not mean that you can’t get something out of it. Donate an old car and know that it will have a second life for those that need it, while enjoying some tax privileges of your own.