Donate Your Car to Charity to Support a Worthy Cause and Get Tax Benefits
The average household owns 2.3 cars today, and most people change their cars after eight to ten years of use. The reasons of changing your car can range from poor performance of your current car to wanting to get a car that fits with your current lifestyle. Selling off a used car to a dealer usually gets you paltry sums and these dealers often take out the useful parts of the car and sell of the shell to junkyards. By not disposing off your car in a proper manner, you are only adding to the already huge pile of solid waste that litters most modern cities today. Disposing your car in a proper manner, however, requires a lot of time and efforts, and most people are too busy to take this time out from their hectic day.
A better option:
Giving you car to a local or national charity is a great alternative to selling your old car to the dealer. There are numerous charities all over the country supporting causes ranging from cancer to better education for at-risk kids, and you can support them by giving them your old car. These charities hold auctions to sell of these cars and use the money to do their work. Not only will you be supporting a cause that you believe in, but also getting rid of your car in a convenient manner. You can also write off this car donation as charity work and get deductions on your tax, which are usually comparable to, or higher than, what a second hand car dealer would have paid you for your used car.
The benefits of donating car to charity:
Donating cars to charity is time saving since the charity volunteers usually arrange for pick up right from your home. You simply have to contact the charity of your choice, and they will take your car. The convenience, the monetary benefits, and the fact that you are doing a good deed make this the perfect way of disposing off your car. With thousands of charities to choose from, you can pick any cause that you are passionate about, and help them without having to shell out cash. Local charities that are raising money for community purposes are the most preferred, as the money you help raise benefits you and your family in the end.
What you should know before you donate your car to a charity:
There are some things that you must take care of when you give your car away to a charity. You can only claim tax credits if you obtain written proof from the charity certifying that you made a donation. There are some limits on how much tax benefits you can claim, and they vary by state. If you are giving away an older car which is not worth a lot, you usually do not require a donation receipt, but getting a receipt will ensure that you do not face any issue at the time you are filing your taxes. The validity of the charity you pick is another thing that you should find out before making a donation. With some research, you can not only dispose off your old car easily, but also get substantial tax benefits for it.