Tax Breaks and Charity Donations

Tax Breaks and Charity Donations

Article by R.C. Bryan

Everybody knows that tax is a very serious matter and by trying to cheat the system you will likely end up in a whole heap of trouble. The government does not show any mercy to individuals or businesses who break these laws and to make matters worse, high profile offenders are sometimes openly disgraced through the media. However, while it is true that what the tax man says, goes, some organizations do work with more freedom than the others under tax laws.

Goodwill Industries and The American Red Cross are non-profit organizations and operate with minimal government intervention. As such they get special tax exemptions, meaning that they are the most preferred among donors. It is common for businesses to make regular donations to major charitiesas it can help the company to improve its image and create a good feeling amongst its workers. Auto donation is an unusual way to donate but it does offer some advantages. Many people prefer to make vehicle donations and charities are always grateful to receive them too. You will find that charities are often much happier to receive one large contribution rather than several smaller donations.

So how does auto donation work? Well firstly, a representative of your chosen charity will come to pick up the car. This is arranged by the charity to ensure that they process your donation as quickly as possible. When you donate your car to Goodwill industries, there is a good chance that your car will be sold for a higher price, entitling you to more in the way of tax relief than you otherwise would be. This is because when people buy from a charity they are moere likely to pay a fair price. This can prove to be important because when you make an auto donation you will be eligible to claim a tax deduction on the value of the vehicle. The more money the charity receives, the more of a deduction you can claim off your taxes. There’s no wonder that vehicle donations are so popular.

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.