Cars For Charity

Cars for charity are ideally connections between those with new or used automobiles to donate, and charities or philanthropic organizations with ongoing and substantial financial needs. Donating cars to charity is a way for a person or business to make a substantial investment in charitable work while at the same time being a wise steward of their own possessions. The idea of providing automobiles for nonprofit organizations has been in practice for a long while, and many people have taken advantage of the opportunity to give and the tax breaks available when they do. Donating autos to those in need can be accomplished in several different ways, either by donating directly to the charity of one's choice, or by donating to a charitable foundation that liquidates the donation and then donates the money for the person making the gift. In either case, the donor needs to be aware of the requirements that enable the gift to be tax deductible.

The IRS offers several different pamphlets with general and specific information concerning donating autos to nonprofits and the information a person will need to make a wise donation. There are guidelines established for donating cars for charity that include determining fair market value and the correct procedures to follow in order to be able to take a tax deduction for the gift of a car for charity. For example, if an automobile is donated and then used by the charity, then the donor receives a tax benefit in the amount of the fair market value. If the automobile is auctioned off, the donor receives a tax benefit for the amount the car was sold for. This and other information is easily found by looking on the Internet or by calling the IRS directly and having the publications concerning donating cars to charity sent to the caller's home address.

Donating automobiles for nonprofits can be done all across the United States and in many different ways. If a person is striving to be a good steward of his financial resources as the Bible admonishes, a person needs to become educated concerning the different laws and accepted practices that govern donating cars to charity. Different states and cities have different rules concerning donations of cars for charity. In California, for example, a person must sign a release of liability form when giving autos to charitable organizations. In New York, the donor must simply surrender the license plates of the donated vehicle in order to be released from liability when giving cars for charity. Giving automobiles for nonprofits can be a wise and effective way to be a good steward of one's resources by helping others and gaining a tax benefit.

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