How Does a Donated Car Help Charities?

Charities and Donations

Charities are tax-free organizations that offer services to citizens or the community at large. Charity organizations often work through churches or civil organizations to assist people in need. Many charities offer gifts of food, clothing or money to needy families. People in need normally contact a charity in their community and ask for assistance, and the charity will match the people with programs they offer. Most charities function almost entirely off donations from the community. Charities will hold fundraisers and festivals to raise money and get donated items, and they distribute these to needy community members. Donations can be anything from money to clothing to food items, with a number of people offering vehicles for donation. These vehicles can be of great benefit to charities if they are handled correctly.

How Donated Cars Make Profit

Donated vehicles have helped countless charities around the world. Many people have vehicles they no longer use and desire to get rid of. When a vehicle is donated to a charity, the owner of the car signs the title of the car over to the charity. The person who donated the car may also benefit because donating a vehicle can be a tax deduction in many states. If the car is in good shape and runs well, the charity can sell the car to a private party. Private party sales normally mean more money for the charity since private sales are normally worth more. Vehicles that are older or in bad shape are normally sold at wholesale auction. Cars normally sell for much less at an auction but can still be beneficial to the charity.

Returning the Profit to Charity

After the vehicle is sold, the profit is either used directly to help pay expenses for members of the community or to purchase necessary items to keep on hand.

Resources

• Car Donation Charities