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Government Giving Non-profits a Wide Breadth

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There are bound to be many changes when a new administration takes over in the White House and in 2009, those changes are sure to be pronounced. Business will typically be affected in a big way, especially those that rely upon the government for some sort of support. While it is true that places like Goodwill Industries don’t rely on the government for everything, they do benefit when the government makes laws and regulations that give donors freedom.

So how will the new president and his team look at non-profit organizations? His stance on public service and good works has been pretty clear thus far. He is advocating giving back to the community as a means for the nation to come together, so it would follow that his laws would reflect that dedication. This means that you will probably not see any more government action that limits car donation. Since vehicle donation is the primary means by which many of these companies exist, it is very important that no more government strain is put on it.

You won’t see the government opening up any loopholes, either. Fiscal responsibility is important right now and when you donate a car to charity, you are only going to be able to claim its actual value. Don’t be surprised if the government does something to help promote this and give the charities a boost, though. If I were to donate my car, I would want to know that my kind act is being rewarded in some way. With the laws and rules concerning tax write-offs, this has never been more important.

How exactly the auto donation market will be influenced by the new administration remains to be seen, but if everything President Obama has been saying is true, there is reason to expect that things will be promising in that regard.

Charities Report Only Slightly Diminished Returns in 2008

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While the rest of the world has been struggling to near death levels in an economic sense, charities seem to be actually doing moderately well. Though last year they suffered a letdown over 2007 and previous levels, places like Goodwill Industries faired better than most for-profit businesses in the market. That is a good thing, too, as the work for charities amps up when economic times are not as good. So what was the reason for their continued relative success? In this case, it was a focus on more lucrative vehicle donation.

Instead of targeting small donors who could give a little, the charities set their sights on large donors who could afford to give a lot. People chose to donate a car at a high rate, something that may have surprised many analysts who looked at the market. The problem, of course, is that people typically shy away from auto donation and all forms of donation when times get tough. Last year the charities did something a little bit different, though. Instead of simply asking for handouts, they went out and showed individuals how donating a car could actually help them financially.

If you donate your car to charity, you can save a ton of money on your tax return. This has been especially good for people who are self employed, as those savings are essential to their survival. What the organizations noticed was that people had a bunch of cars around their home that they had no use for. They reported that the donations for auto parts and scrap metal were higher than usual, giving them more stuff to try to sell on the open market.

Though you might not have expected it, charitable giving has remained high, and much of the credit for that has to go to those people doing the marketing for the organizations.

Auto Industry Coming Back From The Dead?

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If you haven’t heard about the latest economy flop, then you have probably been hiding under a rock somewhere. Likewise, some of the companies that took the biggest hits were auto companies. Detroit hasn’t been in a good way in a couple of years, and this is having an impact on charitable organizations. Charities like Goodwill Industries depend upon used car donation more than most people realize, and when you can’t get much for a car, it hurts their ability to do business.

The non-profit organizations that rely upon vehicle donation for their livelihood will be glad to hear that some economists think the recession could be over by the end of this year. Though new President Obama has not been quite as ambitious with his goal for climbing out of the mess, it is apparent that there are many people around the industry who feel that the automotive companies are about to get a leg up.

What this will impact is how much charities are able to get for scrap metal and old cars. Currently, when you donate auto parts or scrap metal to a charity, you are only able to claim $500 on your tax return. Because they will likely be able to sell these things for a little bit more in the coming months, charitable giving figures to be up a little bit.

Though there are good feelings surrounding the industry, that is no guarantee that things are going to get better quickly. Still, charities are optimistic that they will see an increase in the already strong vehicle donation market that they have been depending upon so heavily. This is true for those who donate a car and those who donate auto parts and just scrap metal, as the value of both should rise accordingly.


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