Recent Changes to Vehicle Donation

                                                                                         

In recent months, there has been a great deal of speculation about the future of charitable organizations. The economic downturn is effecting every corner of society including charities. They are now finding it very hard to generate funds in these hard times. Charities like The American Red Cross are now fighting to secure more donations so that they will have the funding necessary to continue their work. This is not proving to be as difficult as they thought. After all, there are still plenty of people out there who have a desire to do good, recession or no recession.

In the recent past charities have encouraged vehicle donations. 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 provided benefits for both the charity and the donor. 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 by donating your car. But the good news is that, although the rules have changed, you can still receive a tax break, it will just mean a little more paperwork. This means that there is still a future for car donations and charities are remaining optimistic.

As a result of these new regulations, charitable organizations have moved the bar in terms of car donation. They will now accept much older cars. The idea behind this is that people are more willing to give away an older car that is less valuable. It may be that they consider the car to be not worth the effort of selling. Often these cars may be left unused in a garage or garden. The good news is that the new government guidelines have placed a minimum limit on the amount of tax you are entitled to claim back in reward for donating your car to charity. This means that you can claim at least $500, even if your car is an old banger. This is a good way to receive maximum value from your car but without all of the hassle involved with selling it.

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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