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Car Donations
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Car donationis the practice of giving away no-longer-wanted automobiles to charity organizations. In the United States, charitable
donations provide a tax
benefit; as such, this type of giving has become very popular. For values
less than $500, the value of the tax deduction comes from the donor's own
estimate of the car's value, even if the charity receives less money from
actually selling the car. Deductions for donations over this amount are
limited to the sale amount of the vehicle (usually at auction). Some
critics have claimed that this is essentially a tax shelter. However,
non-profit organizations in the US have come to rely increasingly upon the
revenue from car donations. This type of donation has become increasingly
widespread in the U.S.; in 2000, 733,000 taxpayers reduced their taxes by
$654 million. |
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