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Auto Donation: The Most Convenient Car Disposal

Jul 7, 2008
Are you planning to buy a new car? But then you brush the idea away since it also means ditching your old car? We all know how daunting a task it can be to get rid of an old car, from advertising, refurbishing, and dealing with possible buyers... The list can almost seem endless. Luckily there is already a convenient and fast way of ditching an old car and this is through auto donation.

Auto donation is when you donate your old car to charity, which is usually channeled through intermediaries called auto donation services. This non-profit organization takes care of selling or assigning your car and all the paperwork. When you call them up on their toll-free numbers, the auto donation service picks up your car and gives you a receipt in return. Auto donation simply spells convenience in getting rid of an old car.

Where the Auto Donation Goes

Auto donation services may handle your car in two ways. The car may either be sold at an auction or used by a charitable institution for their operations. But either way, you will be assured that your auto donation proceeds go to a charity.

These charitable institutions may be involved in a number of causes. Some causes involve helping cancer patients, homeless families and even assistance to various other countries. If you have an inclination to a certain charity cause, you may always search for anauto donation services that supports your cause or if not request that the proceeds be used for your chosen charity cause. But wherever your auto donation proceeds go, it is definitely a good feeling to help those in need.

Tax Deduction

Another good thing that comes with your auto donation is the tax deduction benefit. According to the 2005 revision of the federal tax legislation governing auto donation, the gross sales amount from the sale of the car is an allowable tax break or deduction.

The legislation also further states that a claimed market value of more than $500 from the auto donation is allowable under certain conditions. If the auto donation services do not sell the car and use it on their daily transactions for their causes or assigns it to a needy individual or family, then the fair market value may be used as a tax deduction. The fair market value of the car being the value agreed upon by you and the auto donation services.

Under this condition however, certain paper works are necessary. But don't worry; auto donation is as convenient as earlier said. All the necessary paper works will be handled by the auto donation services or the charitable institution. This paper work is simply a written acknowledgment which also contains your tax and vehicle identification numbers.

Getting Started

If you want to get started on ditching your old car through auto donation, the first thing you should do is look for an auto donation services. This will not be a daunting task since there are already numerous available online. However, don't dial that toll-free number just yet. Check for the auto donation services' accreditation; make sure that they are a classified 501(c) (3) charity organization. This accreditation will assure you that they are recognized by IRS and your auto donation proceeds will go to charity. The last thing you may want to check is their availability in your locality. After dialing that toll-free number, the auto donation services will usually pick up your car in 24 to 48 hours. After that, donating your car is already a done deal.
About the Author
Car and auto donations are eligible for fair market value tax deductions under the new tax laws when donated to programs such as that offered by United Society. Donate car to charity at vehicle donations program now!
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