Vehicle Donation: How The Financial Crisis Has Effected Charities}

Vehicle Donation: How the Financial Crisis Has Effected Charities

by

R.C. Bryan

Unless you’ve been hiding in your shed for the past several months you will know all about the economic recession. Businesses and individuals have been hit pretty badly and overall spending has fallen dramatically. Apart from hurting businesses like retail, the housing market and small businesses, it has also seriously affected the auto industry. With less people buying and selling their cars, used cars have dramatically decreased in value.

Although you may not realize it, the economic downturn has had a huge impact on charities too. Charitable organizations, such as The American Red Cross, are seeing a massive dip in auto donations and other staple operations. Due to this mega slow down, major charitable organizations have started to consider other alternatives. Untill recently you were able to claim tax relief if you donated your car to charity. Although the laws governing this proceedure have changed slightly, you can still claim a tax deduction on a donated car. The new rules state that the tax deduction you claim must be based on the actual market value of the car. As the market value of most cars has declined drastically many people see this as being not worth the effort. Vehicle donation is in decline as a result.

Despite this, auto donation still plays a very important role for customers as well as the organizations as per the charities. Charities are trying to encourage vehicle donation and say that while you can still claim a tax deduction it can still be worth while. Of course I would think twice before donating my car in this climate, but the advantages seem clear. There are very limited options available that prove to be better than donating a car in receiving tax breaks. Considering car donation can still be viable even in the current economy, since the tax relief can help you to keep your money out of the governments hands, and securely where it belongs – in your pocket.

Are you a philanthropist looking for ways to give back to your community? Visit

charitydispatch.com

to learn more about how you can do just that by

donating your vehicle

for a good cause.

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Vehicle Donation: How the Financial Crisis Has Effected Charities}