Unless you've been living under a rock for the past few months, you will know that America has been hit by a financial crisis. Businesses and people have been hit pretty badly and overall spending has gone down dramatically. As well as hurting businesses like retail, the housing market and small, independent businesses, it has also seriously affected the auto industry. As people are not able to spend money as freely as they did in the past, it has impacted most businesses and, more specifically, it has impacted the value of cars.

Although you may not realize it, the economic downturn has had a huge impact on charities too, thanks to a major drop in the number of people who donate their cars. Charitable organizations are suffering a lack of funding, due largely to a decline in auto donations. Due to this mega slow down, major charitable organizations are starting to consider other funding alternatives. In the past, you would be eligible for tax relief if you donated your car to charity. This can still be done. However, many people are finding it to be less beneficial than in the past. The new rules state that the tax deduction you claim must be based on the current market value of the car. As the market value of most cars has declined drastically, fewer people are seeing a benefit from vehicle donation.

However, auto donation still fills an important role in the continued function of many major charities, and can still be beneficial to the donors. Charities are now encouraging vehicle donation and say that while you can still claim a tax deduction it can still be worth while. Of course I would think twice before donating my car in this climate, but the advantages seem clear. There are few ways in which you can help others whilst helping yourself at the same time. Car donation can still be viable even in this economy. The tax relief involved can help you to keep your money out of the government's greedy hands, and securely where it belongs - in your pocket.