Car Donation: Supporting Charities Through the Worst of Times

                                                                                         

If you were thinking of donating a car to charity, you might find that it isn't as simple as it used to be. New rules have been introduced governing car donation and some charities are now complaining that it has affected the way that they opperate. The new laws have been created to regulate car donations and to prevent people from using loopholes in the tax system to commit fraud and tax evasion. In the past, if I wanted to donate my car to a charitable organization, I would be able to do so and would be eligible for a tax break designed specifically to reward and encourage such donations. Under the new rules, however, donating a car is not so straight forward. Claiming tax breaks on a car donated to charity means that you will have to record as much information about the vehicle as possible.

Many major charities are now worried about the new rules governing car donation and predict that they will seriously impact their ability to help others. The sale of these donated cars provides a large amount of money to major charities such as Goodwill Industries and The American Red Cross. Individuals that donate used cars have also been entitled to benefit by claiming tax breaks on the value of the car. This scheme was initiated by the government to encourage people to donate cars. However, the government is now tightening up the rules regulating these donations, creating more paperwork and requiring it to be thoroughly, and maticulously completed.

The main concern for charities is that this will lead to a decline in the number of cars donated to them. Although many people choose to donate cars for purely charitable reasons, the tax benefits have always been an extra reason to donate in this manner. As a result of the new laws and the financial crisis, charities are witnessing a decline in car donations and in their overall income. Most charities depend on large donations so with less people offering sizable contributions, the charities, and more importantly, those that rely on them, are sure to suffer.

About the author:
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.

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