Car donations are becoming more and more popular in the United States.
The practice of donating unwanted or unused cars to charity is gaining in popularity for two reasons.
First, the charity receiving the donated car will auction the car off, with the proceeds going to the charity.
It's a great way to help out one's chosen charity if no cash is readily available.
It's also an ideal solution for people who are considering giving their vehicle away, or wondering what to do with their unused car.
Others choose to donate because it is simply too expensive to have their car repaired, or their car won't pass the smog test anymore.
Second, the donor will receive a tax receipt from the charity, which can be considered a tax benefit.
If the charity sells the car for more than $500, the donor will be able to get a tax deduction for the amount that the car was sold.
If the charity sells the car for less than $500, the donor will get a tax deduction for the amount he considers the car to be worth.
This is called the car's "fair market value.
" Others choose to donate because they need the tax write-off.
Donors may donate to charities directly.
An alternative option is to donate to a company that facilitates car donations among multiple charities, letting the donor choose which charity to donate to.
Some of these companies even accept other vehicle donations, such as boats, motorcycles, trucks, farm equipment, and recreational vehicles.