June 25, 2009

Advantages and Disadvantages of Automobile Donation

Filed under: Wheels — admin @ 12:47 pm

The solicitation of used vehicles has become an increasingly popular means of raising funds, especially for local or regional organizations. On the surface, it seems like a win-win situation for the donor and the charity: a convenient and easy way of disposing of an unwanted car while helping a cause.

Automobile donation can help your local community and even your state. There are many organizations staying in operation because of the money and assets they’ve received by automobile donation programs. The charities that receive money as a result of your donation provide everything from housing assistance to free medical care. Without your vehicle donations, and the money they provide, these programs would not exist.

In Des Moines, Iowa, there are several charities that will gladly accept automobile donations. The Salvation Army and Kars4kids will accept such donations, as will Environment Iowa - a statewide, citizen-based environmental advocacy organization. Before handing over those keys, however, there are some things that you should know. If you are not familiar with the charity, its location and its programs, take the time to check it all out to avoid being disappointed later.

Due to the increasing number of programs that allow for the donation of used automobiles to charitable organizations, the IRS has become concerned about the misuse of this charitable endeavor. The IRS is concerned about taxpayers deducting fair market values for used vehicles that do not fall in line with the true market value of the vehicle based on the condition it’s currently in. Therefore, do your research or consult a legal advisor or tax attorney to make sure you are following all of the IRS charity automobile tax rules (yes, there are charity automobile tax rules). When donating a vehicle, you must put in writing that the donation is “to” the charitable organization and not “for” the charity.

By donating your car, truck, boat, or RV, you’ll be spared the ordeal of selling your vehicle, and you’ll make a valuable contribution to help needy people in your community.

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