Where Do Charities Go From Here?

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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 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.

The Business of Vehicle Donation: Taking Out the Middle Man

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A recent study took a look at the “business” or charitable vehicle donation and it brought to light some interesting things. All in all, auto donation is easily one of the most important and unique things that most charities do. In fact, many charities lean on car donation so much that losing that part of their operation would render them basically helpless. The thing about charities like Goodwill Industries is that they have their hand in many different community efforts all across the world. They obviously need money to do that, so charitable vehicle donation is where they turn.

What happens when you donate a car to charity is about as simple a donation process as you are going to find anywhere. This is why, in effect, it has become so popular among philanthropists. The best part about donating a car to charity is that you can take out all of the middle men. When you try to sell your vehicle or trade it in for value on something else, you always have to go through these middle guys. You have to go to them for paperwork and a host of other services. When you donate your car to charity, you don’t have to put up with this hassle.

According to the report, this is what makes charitable car donation so popular. Simply put, people do not like the hassle that goes along with selling their car. They don’t like having to deal with lots of people just to do something that should not take nearly as long as it does. The charities have made it a streamlined process, and this is not by accident. Their marketing departments have put a great deal of focus on creating a process that is as painless and seamless as possible.

Solid Charities Build Relationships with Trust

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According to 2008’s charitable giving statistics, people didn’t step down their giving too much in the past year. There were some very interesting trends to consider, though. From the looks of the data, people are giving to the same charity over and over. Folks not only like their pet charity for the cause it represents, but there is another reason why they might want to keep going with that organization. Charities like Goodwill Industries have become known for not only helping people out in the right way, but also for the way that they develop relationships with donors.

So what are charities doing in order to get people to step up their donation level? They are creating an atmosphere where people can trust that their donations are going to good use. When I donate a car to charity, I want to know that the money from the sale is going directly to someone in need. All too often when you donate your car, the money is stockpiled and held with no destination in sight. What the good charities do is make sure that your money gets to where you intended it to get.

When you donate a car or something big like that, you need to be absolutely certain of where those funds are headed. Charities that fail are the ones that don’t have this type of transparency, so that people have to always wonder where their money is going when they should know without a shadow of a doubt. When you donate a car, make sure that you are going with a charity that you know and trust. Building long term relationships with these organizations is the best idea, as it can save you the time and headache of having to research a new organization each time you make a donation.

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