If you are thinking about donations to give to NGOs and you’re wondering if donating your car is a worthwhile idea, read on. Let’s start with a bit of history. It was a popular tax gambit years before, since it came with tax deductions. However, the American Jobs Creation Act of 2004 has already put a stop to this, limiting the amount of deductions that you could take for a donated truck, boat, plane, or car. Essentially, you can get a deduction beyond $500. With that move, there was less appeal in donating a car. But there are still plenty of reasons for why you’ll want to do this.
Helps the Charity
Car donations in Los Angeles to your favorite charity is a huge help for them. They could sell that off or use it, especially if it still runs with little to no problems. By making a donation, you are making it possible for the charities that you believe in to last longer and help more people in need.
Provide for Their Use
As long as the car still runs, it’s not a problem. Charities need to get around. They rescue families in need. They go to low-income communities. They help. They bring in supplies. They do a lot of things to provide assistance, and they can do so much more than that if they have a car. By making transportation easier for them, you help the charity extend its reach and reach out to more people in the area.
When you donate a car, the charity can use them for training. They could train staff or the people they help to learn how to drive or even tinker with the engine. If the charity wants to support vocational education programs for the less fortunate, they can use donated cars to help.
Get a Tax Write-Off
While the process is more complicated and you don’t get as much money as before, you still get money from the tax write-off. It’s not the primary reason while you’ll want to donate your car, but it’s a handy side-benefit. By donating your ride, you’ll still end up with money in your pocket. However, if the car is worth more than $5,000, it’s possible that you could get more than $500 for the tax write-off. You’ll need to include a report from an independent appraisal to back up your claim.
Avoid the Hassle of Selling It Off
By donating the car, you get money from the tax write-off, and you won’t have to worry about selling the car yourself. If you want to avoid that tedious task, then donating to charity is a good move. It benefits you and the charity you support.
Get Free Pickup
Some charities also offer to pick up the car for free. While the cost of that pickup might be deducted from the car’s value, that still works for you. The lower the car’s value is, the more it will reduce the tax deduction you’ll get.