| Any donation you make to help out a worthy cause | | | | involved with car donation. |
| can also help you with your taxes. If you have an old | | | | Even though the old laws had some problems, many |
| car parked in your garage and you don't know what | | | | charities are skeptical about the new car donation |
| to do with it, car donation is a wonderful way to help a | | | | laws. A lot of organizations are concerned about what |
| charity. Although the car donation laws have changed, | | | | might happen when the responsibility of tax deduction |
| this is still a good way to help yourself and others too. | | | | is put under the authority of the charity rather than the |
| In 2005, the laws changed regarding tax deductions on | | | | donor. Some of them have actually sent a letter to the |
| boats, vehicles or airplanes that are valued over $500. | | | | Treasury Secretary that suggests that people may be |
| Now, the charity must provide written documentation | | | | discouraged from donating cars if they aren't aware |
| or acknowledgment within the 30 days of processing | | | | of the deduction amount that will be allowed. This, they |
| your donation. If the charity gives an exaggerated or | | | | fear will mean that some donors will be lost. Charities |
| false statement, they can be fined or penalized. | | | | feel that donors must be able to weigh the cost of |
| Under the January 2005 rules, your tax break is based | | | | benefit in order to know if it is enough for them. |
| on how the charity uses the donated vehicle. If the car | | | | If you do decide to pursue car donation, you will find |
| is sold, the gross sale price can be deducted. If the | | | | out that the process is easy. You can contact most |
| charity uses the donated car following the new law for | | | | charities by phone or online. It is important to ask the |
| "significant" charity work that is tax approved, you'll be | | | | charity you wish to get involved with for some specific |
| able to deduct the market value of the vehicle. | | | | and important information. This is necessary in order to |
| However, some stiff penalties will be charged for | | | | avoid complications and also be sure you understand |
| falsified documents. The law is watching carefully | | | | the process. It's not hard, but does require you to fill out |
| those charities not following the rules and regulations | | | | some important information and get the car ready. |