That brings us to the concept of donating a car for charity. Statistics show a steady rise in the automobile donation sector. In the financial year of 2000, approximately seven hundred fifty thousand people lowered their tax returns by taking a deduction for donating a car.
The car donated to the charity can be used in many forms. For example, a charitable organisation can opt for using the car for transportation, while others might sell the cars to generate money for their funding. However, at times some agents play a trick in the name of charity. Under such circumstances, the charity’s name is just used as a facade, and the money directly goes into the agent’s pocket!
We do hear about many such cases where rackets are discovered that have been using the face of some or the other good cause to hide the money minting business going behind the scenes. Putting up fraudulent companies is a cake-walk and you can find innumerable fake organisations in this sector.
Thus, it is extremely important that you weigh all your options, and understand every aspect involved into donating a car for charity. Since you will be donating an item such as an automobile, which took considerable amount of investment from your end, you ought to ensure that you are not being cheated off your right to tax deduction.