Charity Donation Laws: Making A Pledge

Charity Donation Laws: Making A Pledge

Article by R.C. Bryan

To receive a tax benefit by donating your car to charity, you should first be aware of all the laws governing the exchange. The government has introduced new rules to regulate the way in which vehicle donation is carried out and is making it more difficult for people to abuse the system by making false pledges. If you plan to donate your car you should be aware of the regulations and guidelines set by the government. This will make it easier to take advantage of the tax benefits that vehicle donations create.

Some mistakenly think that these new laws have been set up to prevent them from claiming tax breaks on their charitable contributions. This is not true. While new laws have made claiming the benefits of car donation more difficult, you are still entitled to claim a tax deduction on the value of the vehicle you donate. The government fully supports charities such as Goodwill industries and The American Red Cross and while they want to make it difficult for people to abuse the system, they also want to make it easy for genuine people to contribute to their running. The new laws make it harder to cheat the system but have not effected your entitlement to claim tax breaks. You should read up on these new laws if you want to get the benefits that vehicle donors are entitled to.

The great news is that you dont have to donate your car before the end of the year to receive the benefits. The new car donation rules say that you must pledge to donate a car by the end of the year. This means that you can make your claim for tax deductions before the donation has even been finalized. Of course pledging a donation is not as simple as strolling up to the charity and declaring your intention. There is a lot of paper work involved. However, once you have filled in some of the necessary forms, your pledge will be officially logged.

About the Author

Are you a philanthropist looking for ways to give back to your community? Visit http://www.charitydispatch.com/ to learn more about how you can do just that by donating your vehicle for a good cause.

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