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.

Your Car Donation and the IRS

One of the best parts of donating your car to charity is the tax deductions your act of generosity will earn you. Who wouldn’t want to donate and get thousands of dollars deducted from his taxes?

However, you should note that the IRS has made some significant changes to the way you can claim deductions from your recently-donated car. Here are a few things you need to remember when donating your car to charity: