Tax Deductible Car Donations

Tax deductible car donations are an excellent way to help a person save some money on his personal tax liability when filing his yearly income tax return. A tax deductible car donation will not only save the taxpayer money, but also provide an opportunity for him to give to the charity of his choice. The double benefit makes this a popular means for many American citizens to lessen their tax liability while at the same time providing finances to the charity of their choice.

According to the IRS, two and one half billion dollars of tax deductible car donations were made in the year 2000. There are many charitable organizations in the United States that solicit these contributions to meet the needs of their philanthropic outreaches. Some of these are organizations that benefit cancer research, the blind, at-risk kids, both kidney and lung foundations, animal rights groups, veterans groups, and many more. A contribution can provide much-needed funds for these and other non-profit organizations. The work accomplished strictly because of this generosity is vast. With many citizens using this means of giving, the strides made in disease-related research alone is enormous.

Care should be given when researching the charity to which a person makes his tax deductible car donation. Check out the financial statement of the organization. If the group does not use its funds appropriately, do not consider them for a donation. Research how the money is spent. New laws have made it possible to receive the full retail value of a donated automobile in some instances, but it is important to be aware of which charitable organizations are considered qualified organizations according to the IRS. IRS Publication 78 lists acceptable charitable organizations. Contributions should be prefaced by certain questions for a chosen organization, such as, how much of the proceeds of the sale of the tax deductible car donation will actually get to the charity and how much is used up in administrative costs.

Non-profit and charitable organizations highly desire tax deductible car donations; therefore, many organizations will offer free pick-up of the automobile donated. Not only are cars accepted, but also trucks, boats, trailers, and recreational vehicles. Proverbs 18:16 says, "A man's gift maketh room for him, and bringeth him before great men." Making a contribution of a vehicle is a beneficial act that provides reward to both the giver and receiver. The benefits go both ways and help build up God's kingdom.

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