June 20, 2014

How Helpful Can Your $500 Car Be to Charity?

Assuming the old car that you donated to charity sold for $500. Under IRS regulations, you can claim the full market value as a tax deduction. Meanwhile, the charity to which you donated your car can use the money to support their cause. It may make you wonder, though, what can a registered nonprofit do with $500?

From a foreign currency's perspective, the number may not look much. However, given that the U.S. dollar is one of the most valuable currencies in the world, even $20 can already buy so much. Here's a rundown of how much impact $500 can have in supporting charities.

Rice: 677 lbs.
According to the Bureau of Labor Statistics, the cost of rice per lb. as of May 2014 is at $0.739. If two cups of rice is worth a pound, then $500 can produce more or less 1,300 cups for hungry people. Hunger is a major issue in the U.S., with ten states having an above average rate of food insecurity, according to the nonprofit Feeding America.

Flu Vaccine: 64 doses

The Centers for Disease Control and Prevention say that it costs $7.75 to inject a dose of flu vaccine in children six months and older. For $500, more than 60 six-month old children can receive the flu vaccine, which is 28 percent more what the private sector can provide. 

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