Vehicle Donation Programs
by Kelsey Luffman

Vehicle donations are becoming a growing source of funds for nonprofit organizations -- Goodwill Industries alone earns approximately $12 million annually from this type of donation. Though car donation benefits are great, many individuals simply don’t have the time to prepare and sell an old vehicle. Car donation programs run by charities or non-profit organizations can help simplify the process.

Nonprofit organizations sometimes use a for-profit third party program to aid in the preparation and sale of a vehicle, but it is important to investigate these programs to ensure that the maximum percentage of the funds from the sale or donation will be given directly to charity. There are also nonprofit car donation programs. A program’s nonprofit standing can be verified by looking up its tax ID number on the IRS website.

 A car donation program can often be helpful in finding the most efficient use for a vehicle that will also maximize tax deductions. While some donated cars will have to be sold to the scrap yard, sometimes a program can train people to repair old cars or, if the car is in running condition, determine if a charity could use it for transportation. Programs that focus on road-worthy cars can often help to sell a vehicle for its market value rather than a smaller sum than is paid for vehicles auctioned wholesale.

An accountant can help determine if donating a vehicle is the best option, whether it is sold and the proceeds donated or the vehicle itself is donated through a program. Generally, donating the vehicle is the best option, though donors will have to consider the different anticipated uses for a vehicle, since these will affect tax deductions. To learn more about vehicle donation, visit http://www.squidoo.com/howtodonateyourvehicle.

 

Information taken from www.articlealley.com

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