Just got an email from a colleague in Maryland who runs a transportation to work program called Vehicles for Change. Ever since the IRS changed the rules limiting how much people can write off on their taxes when they donate a car, donations of cars to programs like his have fallen. Vehicles for Change and other car programs like it are trying to get the word out - you can still write off the full value of your donation IF you donate your used car to a program that uses the car to help low-income people get to work.
Vehicles for Change is part of a national network of programs, policy experts and researchers who are trying to help overcome transportation barriers to work. The problem is that many jobs - especially good jobs with family-supporting benefits - are often located in places that are physically distant from where poor people live. Too often, public transit doesn't connect those places efficiently - or at all. Without a car, low-income parents sometimes can't access better jobs. They sacrifice time with children in order to take multiple buses to work. Children lose out on opportunities to participate in after-school programs.
Programs that sell low-cost cars accompanied by fair bank loans can help low-income people not only get to work but also clean up or establish good credit, which can put them on the path to home ownership. This is especially important for women and single mothers. A study of Port Jobs' Working Wheels program last year showed that participants who purchased their cars increased hourly earnings by 10%, spent more time with their children, and got their children into after-school and other enrichment activities.
Of course improved public transportation would help us all, but the reality is that people have to get to work today, and transit systems require hundreds of thousands of dollars and tremendous public will that takes years to develop.
Many of the nonprofits that take donation of your car turn around and sell it, then keep the cash for their programs. A lot of good organizations use that money well. But if you want to take the full write-off on your taxes and have your car help a low-income mom get to work and her children to school, consider donating it to a car program in your community.
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