Goodwill cars donated by used car owners can be put to many different uses and hence can help the charity organization in several ways. Not all the charity organizations accept the donation of Goodwill cars for the same reason. Some charity organizations have tax exempt status, and can accept donation of Goodwill cars and then auction them off to get funds for the charity. A lot of people donate Goodwill cars partly because they have an old car to dispose off and partly for the tax benefits that are available for donating Goodwill cars. There is always the emotional satisfaction involved.
When Goodwill cars are auctioned off by the charity, it needs to provide a written acknowledgement to the donor mentioning that the car was sold in an arm’s length transaction between two unrelated parties. This would be especially required when the market value of the Goodwill cars exceeds $500. However, that may not always be the case, and if the market value exceeds $250 but not $500, a simple good faith estimation of the price of the car will do. Those who donate Goodwill cars will also receive the sale statement for the car, confirming the selling price. This statement should be provided within 30 days of the auctioning of the Goodwill cars.
You can also donate Goodwill cars to charity organizations which do not auction the cars but put it to significant intervening use. In such cases the charity which receives the Goodwill cars should confirm in the written acknowledgement about the same, mentioning the use the cars will be put to and the duration for which they will be used in that capacity. Goodwill cars are used by several charity organizations in the charitable projects going on. Goodwill cars could be used for transporting supplies to remote areas, staff to distant places where they are trying to raise awareness on social issues or for other purposes, especially during natural disasters. Sometimes, Goodwill cars are accepted as donations by charity organizations which are planning to repair them and then donate them to needy families. However, for such scenarios, the Goodwill cars have to be in a very good condition and should not incur very high costs for the charity. Goodwill cars are also sold off in some cases to junk or salvage dealers in scenarios where they are in a bad condition and do not really look a good prospect for more investment of money.