Used Car Donation

Used car donation is a practice of donating or giving away to charitable organizations, no longer used automobiles. These donations can provide tax benefits in US and hence have become very popular. They are essentially a tax shelter in United States. Non profit organizations have come up to reply on such donations. In 2000, 7,33,000 us persons saved on their taxes by used car donation to about 645 million dollars.
Advertising is very easy way of dispose of an used car, but donors need to fulfill some post donation formalities and requirements to be considered for tax deduction such as getting a written acknowledgement by the charity for the car’s subsequent sale and itemizing returns instead of paying standard applicable tax. For vehicles values less than 500 dollars, even if the charity on sale of the vehicle receives less money, deduction comes from the estimated car value by the donor. Deductions greater than 500 dollars are bound by the offering of vehicle usually at auctions. In UK, their is no such tax benefits on used car donation to any charity.
Used car donation in us is practiced in a wide variety of plans ranging from professionally organized grade not for profit, scrap yards to local charities, haulers, national, salvagers and tow truck companies, who arrange programs that in any kind, would support charity. Donation programs are run by many charities such as Salvation Army, Goodwill and American Cancer Society. All of them accept used car donation. Many charities will directly use the donated vehicles to increase supplies to areas that need immediate help and to transport volunteers. Many of them sell their cars at auctions organized by auto companies. Some have their own car lots to sell the donated cars. Ideally, donors should also keep investigating about how much money goes to the charity programs and auction organizers as may be necessary at the administrative level.