Individuals who make the selfless choice to donate a vehicle to a charity are now subject to some important laws. Among those, the government has made it so that auto donations are much more highly regulated and scrutinized. In the past, if I wanted to donate my car to charity, I would be able to do so and claim a certain tax break on my return without much problem. These days, car donation comes with the responsibility of accurate reporting and requires a good bit from both sides of the donation.

Some charities are worried about how the new laws will impact their ability to help people through the sale of these cars. Some of the largest non-profit organizations in America, like Goodwill Industries, have benefitted greatly from auto donations. Typically people who donate used cars or donate used car parts have been able to take advantage of the government’s encouraging philosophies on philanthropy. Though the federal government still encourages people to donate a car to charity, they are tightening up the loopholes so that charities and individuals alike will have to keep better tabs on the transaction.

For charities, the primary worry is that people are going to cut back on their vehicle donations because they won’t benefit as much on their tax return. Though the charities understand that people are typically giving their cars out of the goodness of their hearts, the tax breaks have always played a huge role in encouraging people to unload their auto in this way. The new laws, coupled with the struggling state of the American economy, have had some impact on car donations. The charities depend greatly upon these large donations to do their work, and with more and more people choosing to go in another direction, there is a great deal of concern among those who run the charity organizations.

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