| If you run any kind of business it's likely that you have | | | | gained from this kind of donation than, say, a large |
| a few cars that were purchased specifically for that | | | | business. Also, you can deduct the amount of a |
| business. If this is the case, it's possible to partially | | | | replacement car/truck as well as the vehicle you're |
| maintain them through IRS-sanctioned charities by | | | | donating. Over a year this can add up to considerable |
| making a charitable donation. You make some tax | | | | savings and should certainly be investigated.. |
| savings, keep your cars fresh and provides useful | | | | If you own lots of vehicles, it might be useful to run |
| funds for your chosen non-profit organization (NPO). | | | | through them and draw up a replacement plan |
| It's possible to move down a tax bracket even if your | | | | (factoring in the charitable donations) so that you know |
| cars are worth less than $500. Imagine being able to | | | | exactly when to replace and make the most savings |
| donate a few cars each year - you might take | | | | over the taxation year. |
| several deductions and pay less tax as your overall | | | | If you operate locally, it's probably best to donate to a |
| income is now lower. It can be a win-win situation if | | | | local charity as this can help your business image |
| done right. | | | | within the community. You might even be able to forge |
| If you own a small business and have only one or two | | | | new partnerships and contacts and this might lead to |
| cars, you can still donate to your NPO who might even | | | | new customers. It also means that the car can be |
| use the car rather than selling it. You can still claim the | | | | used by local people as opposed to being sold. Also, |
| market value for such a donation. Charities can use | | | | you can claim up to 10 times more for this kind of |
| these cars for delivering meals, for example, and even | | | | donation so it's definitely worth considering. |
| the local police can make use of such vehicles. It's | | | | There are many examples of companies benefitting |
| certainly worth considering giving something back to | | | | from charitable partnerships. The NFL has close links |
| the local community in this way. | | | | with the United Way and both organizations benefit |
| Many NPO's are exempt from tax (they go through a | | | | considerably from this liaison. |
| rigorous screening procedure by the IRS) so this is also | | | | Some time ago, IRS changes made it harder for some |
| beneficial to you and them. Spend some time double | | | | people to claim more than $500 in deductions, but for |
| checking the tax status of the charities you're | | | | small business owners the situation is reversed and it's |
| considering donating to. | | | | actually quite easy to claim. |
| As a small business owner, you'll be used to making | | | | Now might be the time to check out a local NPO and |
| itemized deductions so you probably have more to be | | | | see if they can make use of your old clunkers! |