If you want to donate a car to charity you might find that it isn't as easy as it once was. This is down to new rules governing car donation. The new laws have been enforced to provide increased regulation of car donations and to stop people from taking advantage of loopholes to evade tax. In the past, if I were to donate my car to a charitable organization, I could do so easily and without a problem. I would also be eligible for a tax break. Now, however, donating a car requires much more diligence and record keeping. Receiving a tax break on a car donated to charity means that you will have to record and detail as much information about the donation as any other charitable donation.

Several major charities are now worried about the new rules governing car donation and predict that they will seriously affect their finances. The sale of these donated cars counts as a large part of the annual income of major charities like Goodwill Industries and The American Red Cross. Those that donate used cars have also been entitled to benefit by claiming tax breaks on the value of the car. This is completely legal and was introduced by the government to actively encourage people to donate cars. However, the government is now tightening up the laws regulating these donations, creating more paperwork and requiring it to be thoroughly, and maticulously completed.

The main concern facing some charities is that this will result in a decrease in the amount of cars donated to them. Although many individuals donate cars through simple generosity, the tax benefits have always provided them with an additional reason to donate in this manner. Because of the new laws, and the current state of the economy, charities are already seeing a drop in car donations and in donations on the whole. Many charities depend on large contributions such as this and with less people making sizable donations, the charities, and more importantly those that they help, are sure to suffer.