Much speculation has run rampant lately about the future of charitable organizations and where exactly they go from here on out. The struggling economy has certainly had its impact on everyone, and charities have not been exempt from that. So what do places like Goodwill Industries and The American Red Cross do now if they want to stay viable? After all, there are still plenty of people out there who need help and things are not going to get any better from that standpoint in the near future.
The charities had once targeted people who wanted to donate cars that had quite a bit of value. The idea behind this type of auto donation was that people could take a huge tax write off on their return, often using inflated value figures for the car from the Kelley Blue Book. They would be able to write off much more money than they would ever get for the car on the open market if they made a donation. Now, if you want to donate your car to charity, you will not be so fortunate. The new laws relating to charitable giving have closed up the loop holes, but have opened up another avenue by which charities can make money.
That is, charities now are looking to take in cars with less value. They are doing this with more frequency because, as you may well know, people just don’t feel like trying to sell the old junk car in their yard. The advantages to people donating these cars which have a value of less than $500 is that no matter how bad these cars are, people can claim at least $500 on their taxes. Additionally, when you donate a car to charity, they will typically make arrangements to have it towed from your home, adding another advantage to the table.