Charity Vehicles

Charity vehicles are used or wrecked vehicles that are no longer needed by the owner and are donated to a charitable organization. Charity vehicles could be cars, trucks, scooters, RVs or even boats. Donating automobiles to charities has become very popular as the donors get tax benefits and get to avoid the hassles of selling car such as advertising. It is claimed that people donate vehicles just to get a tax reprieve. However, many charities have begun greatly relying on charity vehicles. As donating a vehicle is profitable to both the charitable institute and the donor, this type of donation has become increasingly widespread in the recent years.

Charity Vehicles Benefit to Donors:

Donating a car is an easy way to get rid of an old vehicle. However, there are certain post donation requirements the donors have to fulfill to qualify for a tax reprieve. Donors need to obtain a written acknowledgement of the car’s sale by the charity clearly mentioning the amount for which it was sold. They also have to itemize tax returns instead of taking the standard deduction.

For vehicles whose value is less than five hundred dollars, the tax deduction is equal to the donor’s estimate of the car’s value. However, charity vehicles which are worth more than five hundred dollars get deductions equal to the sale value of the vehicle. Donors are also required to submit an acknowledgement from the charitable institute verifying the sale value of the car, for cars worth more than five hundred dollars. 

Charity Vehicles Benefit to Charitable Institutes:

 Various donation programs are run by charities. Some charities directly sell the charity vehicles while others sell them through auto auction companies. Many companies also collect and sell charity vehicles and then give the money to a charity of the donor’s choice. Although these companies take a certain percentage of the car’s value, they are very important for charities that do not accept car donations or do not have the resources to sell the car themselves. Donors should make sure that a fair amount of money goes to the charity. Some charities may even decide to retain the charity vehicles.

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