There are many reasons to donate autos or boats to your church or religious organization, as long as it’s recognized as being a legitimate non-profit venture by the IRS.  Some of these reasons are more tangible than others, but hardly less real to those who feel compelled to do good works.  Even when you donate an auto to a faith-based community service organization affiliated with a church be sure to be honest with yourself.   The quality of the donation is dependent upon the quality of the donated vehicle in question.

Here are some reasons to donate to your religious organization.

1- The youth group needs a van for their upcoming trip and you have one you no longer need.

Just because you don’t have use for a large vehicle anymore doesn’t mean someone else doesn’t.  Such donated autos are especially useful for team sports or camping trips.  Vans that are setup with bench seats and room for a whole bunch of kids are perfect for this type of donation.  Parochial schools are always on the lookout for such vehicle donations.

2- You know someone in your church who really needs a car, and you’re in a position to donate an auto that requires only a small amount of work or no work.

If you’ve been a member of a congregation for a long time, odds are you know a few people who’ve gotten down on their luck.  Instead of giving the car to them directly, if you arrange it through the church, then there will be no gift taxes to pay and you’ll be able to deduct the whole “fair value” amount.  This is usually best if the car is already in good working order.

3- One of the deacons is an auto repair expert and you want the kids to have a project for the summer to keep them out of trouble.

Of course, you’ll want to clear this with the deacon in question, but the goal of a donated auto sale is enough to keep several kids from running wild all summer while they’re learning a useful skill, and that’s priceless.

4- Your old car runs reasonably well and you’re sure someone in the church can use the car rather than it being sold for auction.

It is important you find out what the congregational need for a car is at any given time, ensuring that there’s a good fit for your donated auto.  You are able to get far more deduction benefit if there’s a real need for your vehicle rather than a future sale, especially on the wholesale market.

5- You’ll feel very religious as a result of donating a vehicle.

No value can be put on that.

6- Your gift may inspire others to donate to a larger “Donated Auto Day” to buy a new organ or church material.

Regardless of what the proceeds will buy, if you have a vested interest in the outcome of what the proceeds are to be spent on, the idea of maximizing your deduction with a donated auto isn’t nearly as important, especially if you’re using standardized deductions anyhow.

7- You may donate as a self-imposed penance.

You can really add to that by donating the money you save on your returns to the church or the charity of your choice in addition to the donated auto.

8- Your church is the only charity you trust.

That’s up to you, but all qualifying religious and non-profit organizations are equal in the eyes of the IRS.

9- That woman down the street did it.

That’s a very popular motivation with donated autos or just about anything else.

10- Your yard is breeding old cars faster than you bore your children.

It’s time to find all the extra autos new homes as donated autos.

The church will often have the use of a tow truck, and it’s good to just make junk go away at a certain point, regardless of the tax benefit.

This entry was posted on Saturday, December 27th, 2008 at 10:49 pm and is filed under Charitable Giving and Auto Donations. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.