Charity car auction is that part of the car donation programs which will decide how effectively the value of your car will be utilized by the charity. A new charity maybe doesn’t have the facility to pick up the cars to donate and put them up as auction items. While most long running charities have their own charity auto auction.
Majority of all charities depend on charity auction services. If car charities don’t have facilities to run live auction then fund-raisers do that and give percentage of charity car auction proceeds.
One of the real issue that people are worried about is how auto charities maximize the value of their charitable auto donations. And because charity car auction is important part in any donate used car charity, having information about it is vital. In Dec. 2005 IRS has warned charities for the claimed value of sold donated car in auction because some charities had claimed the cars were sold to needy people way below fair market value.
So they had given the donors acknowledgment which let donor claim a deduction more than $500 (there is an exception). So IRS changed the rules in this case and doesn’t treat the donated cars or vehicles sold at auction as qualifying for the exception for sales way below fair market value to needy individuals.
Now donor can use the exception and may be eligible for claiming fair market value deduction, if automobile is sold in the price to needy individual significantly below fair market value. In this case charity can provide an acknowledgment for caliming fair market value deduction. Be aware this exception doesn’t apply for sales at charity car auction that can cause charity penalties.
The charity car auction organized by a charity auction service would mean a greater overhead cost and lesser money reaching the charity to be put to real use. This is one reason people give car to charity that has a charity car auction of its own. The charity car auction overhead should have a big say in your charitable choice. Charities usually have a charity spokesperson who would give information about the charities donate car program and charity car auction.
Donate automobile charity that has its own charity auto auction is a better choice to donate automobiles to because it would have more value for you car as a charity item. Charity car auction though should not be a donor’s real concern but since it affects the value of the charity car for the charity one must know about it. Most charitable car donations made by careless donors has resulted in little or no real help to the charities whereas the charity car auction services have gained a lot from it.
Donate automobiles only after you make all necessary enquiries about donate automobile charity. Especially about the charity car auction they have in place to auction your car. If possible attend a live auction. It will give you a good idea of what charity car auction is all about.
What activities are involved in a charity car auction and what costs might be incurred by the charities in a charity car auction would be answered by being present in a charity car auction. If you are thinking of charitable car donations it’s important that you know as much as you can about charity car auction.