Of late, there has been a great deal of speculation about the future of charities. The economic downturn is effecting everyone and charities are no exception. They are now finding it very difficult to generate funds in these hard times. Charities like Goodwill Industries and The American Red Cross are now engaged in campaigns to boost their income from vehicle donations and secure the funding that is so vital to their work. This is not proving to be as difficult as they thought. After all, there are still many people out there in the society who need help, recession or no recession.
Over the last decade charities have sought additional funding through vehicle donations. They have been encouraging people to donate their used cars to them rather than selling them or trading them with a car dealership. As a reward for their donation people would be entitled to claim certain tax benefits, often using inflated value figures for the car from the Kelly Blue Book. This was beneficial for both the charities and the person donating the used car. Charities could sell the car to receive their vital funding and the donor would receive more money for his car than he would if he were to sell it. Unfortunately, the laws surrounding vehicle donations have been changed slightly, making it more difficult to claim a tax break when you donate your car. But the good news is that, although the rules have changed, you can still receive a tax break by donating a used car. This means that many people will still choose to donate this way and charities are remaining optimistic.
As a result of the new car donation laws, charitable organizations have changed the way that they receive car donations. They will now accept much older cars and cars in poorer condition. The principal behind this is that people are more willing to donate a car that is of less value. The charities hope to receive a higher number of these less valuable cars and thus continue to make money through their resale. The good news is that the new car donation guidelines have created a minimum limit on the tax break you can receive in reward for donating a car. This means that you can claim at least $500, regardless of the value of the car. This means that you could receive more than the car’s value in tax returns, without the hassle of selling it.
Are you a philanthropist looking for ways to give back to your community? Visit http://www.charitydispatch.com to learn more about how you can do just that by donating your vehicle for a good cause.