New Car Donation Laws Cause Charities to Worry

If you want to donate a car to charity you might find that it isn't as simple as it once was. This is down to new laws governing car donation. The new rules have come into force to regulate car donations and to stop people from using loopholes in the tax system to commit fraud and tax evasion. Untill recently, if I were to donate my car to charity, I could do so easily and claim a certain tax break on my return with little or no problem. Presently, however, donating a car requires much more diligence and record keeping. Claiming tax breaks on a car donated to charity requires you to record as much information about the car you donate as possible.Major charities are now worried about the new rules governing car donation and expect them to seriously impact their income from donations. The sale of these donated cars counts as a large part of the annual income of major charities such as Goodwill Industries and The American Red Cross. Those that donate used cars have also been able to claim tax breaks on the value of the car. This is completely legal and was initiated by the government to actively encourage people to donate to charities. However, the government is now tightening up the rules governing these donations, asking that you record much more information.