Why would anyone want to donate their car? Besides being a significant tax deduction that you can write off the next time you file your taxes, there are actually many reasons to do so. Perhaps the biggest reason is knowing that you are helping and supporting your local community.
Proceeds for every vehicle donated to Goodwill are used to provide job training services to those with disabilities. And donating your car can even save a significant amount of money in the following ways:
Save on gas – One report by the U.S. Energy Information Administration puts the average gas prices in the U.S. at $3.30 per gallon. Fueling your car each week easily cost several thousands of dollars per year.
Save on insurance – By not having a car, you are not legally obligated to pay for its insurance which is just another way to save on transportation costs.
Use public transportation – This may not always be a viable option depending on where you live in which case joining a carpool would still be a cheaper alternative.
In addition to these cost savings, your vehicle could potentially save someone else’s life. Recently an Iraq War veteran was surprised with a special donation. This is just an example of how a simple act can help those in desperate need.
Does it matter what condition it is in?
All donated vehicles are taken in whether they are in running condition or not. All types of vehicles from even trucks, vans, SUVs, motorcycles and even small airplanes are accepted.
What happens to the donated vehicle?
All vehicles donated to Goodwill are sold at a public auction. The proceeds from the sale are then used to support workforce development programs.
How much can I deduct?
A receipt with a tax deduction value of at least $500 will be given to you to serve as proof of your donation. However, if it sells for a higher amount then you can deduct for the full selling price.
Do I need to go to the DMV?
Before you donate your vehicle, you will need to remove all tags and have them returned to the DMV. You also need to clear your title and cancel your registration.
Do I need to drop the it off?
If you donate your vehicle to Goodwill then everything will be arranged and your vehicle will be towed at no charge.
Donating your vehicle is a great way to help those in need especially for local charities who could use all the help they can get.