Charity car donations - what you need to know page 3

Charity car donations – what you need to know

You can get an idea or close approximation however by looking up the true wholesale value of your vehicle. Tip – never go to a car dealer and use their used car appraisal as this figure as 99% of the time they are way off. The car dealer and used car manager will always attempt to “steal” your car by offering way too little for it (especially if its a high mileage and older used car).

Because of this nobody is sure exactly how much their car will be worth to donate and whether or not the tax write-off will even be worth it, before people could weigh up whether they want to sell or donate, now this is not really possible. This uncertainty has transpired into fewer and fewer car donations and this means that many charities are short of vehicles, donation money and some are actually losing money!

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Many people have suggested that these new rules are just to make the government happy, they do not really do enough to provide enough opportunities to charities. Maybe its the governments way of striking back at non for profits that aren’t really non for profit or that are overly rewarding their executives with salary and bonus packages similar to for profit’s like the Red Cross which pays its CEO over 20 times the salary of the much larger Salvation Army’s CEO (you should research your respective charities and see which give or pass through the most of your donation dollars to the actual recipients – the Salvation Army has the highest pass through of any charity at over 80%).

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Now many charities receive vehicles that are worth less than $500 so that the donor can know the actual discount they will receive. There are a lot of cars people would like to donate, but until it’s made easier people will be unwilling to. People who own cars above $2000 are put off donating due to the uncertainty surrounding the deductible value.

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