Used Car Donation
Is it really worthwhile?
With as many charitable organizations at work as there are today, there’s truly no shortage of ways you can contribute to those in need. There are missions needing accomplished here in the United States, as well as countless more abroad. As a prospective donor, one of your biggest tasks is narrowing down where you would like your time and money to go, and deciding through what manner you’ll donate your resources.
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A popular way to help charities help others is through a used car donation. Used car donations allow individuals to make a significant contribution to the charity of their choice, while still getting payment for the vehicle in return, through an itemized tax deduction.
Is an auto donation really worthwhile when compared to other methods of giving to charities? Much of the answer to that question depends upon the giver. From the standpoint of the receiving charitable organization, there’s no doubt that car donations are beneficial. From the standpoint of the donor, there’s no doubt that it’s a good way to give a large donation towards a charitable mission. Those are the easy questions to answer.
But where this question may get more difficult is when you consider other things that relate to your specific, personal situation. For example, are you sure you can do without the vehicle in question? If the vehicle is being legitimately used from time to time, you may need to really consider if not having the vehicle available would put you in a pinch. But if the vehicle is pretty much only being cranked to keep the battery charged on occasion, then obviously you may not have a need for the vehicle… and you may even be throwing money out of the window just to keep it insured.
Even if you can do without having the vehicle, can you do without the money? Sure, you’ll have a deduction for the value of the vehicle coming in at tax time, but can you wait that long to recoup the funds? If not, you may be better off selling the vehicle outright, then donating a portion, or all, of the proceeds to your favorite charity.
But if you’re not in a pinch for the money, then making a used car donation may actually be less hassle than trying to advertise the vehicle for sale, dealing with numerous tire-kickers who don’t end up buying the vehicle, and other problems common to arranging an outright vehicle sale. When you donate your vehicle, after some basic paperwork, pretty much all of the headache becomes the responsibility of the receiving organization. You, as the donor, basically just deal with some minor formalities up front, then wait on your deduction in return at tax time, all the while knowing you’ve made a big difference for a worthy cause.
Making a donation to a charitable organization is a personal decision based upon your personal beliefs and circumstances. The best way to go about making that donation is equally personal. But if you can do without the vehicle, and do without the money for a few months, then used car donations can be a great way to significantly help a mission you believe in.
Looking for a nationwide list of agencies accepting car donations?
Visit our Charity Directory page!
There you'll find organizations from coast to coast, including listings by state, to help you narrow the list of candidates to whom you'd like to donate.
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