Thinking of making a car donation to your favorite charity, but don’t know how to go about it? This article will walk you through the basics of the process of getting a tax deduction while helping others in need.
Most well known charities have some form of car donation program. However, if you want to be sure that you can get your tax deduction, you need to do some research first. Qualified organizations are defined in IRS Publication 526. Information about specific qualifying charities is described in IRS Publication 78. You should consult these government publications if you have any questions before donating your vehicle.
You will then need to collect some information before beginning the donation process, such as the year, make, model, approximate mileage, vehicle identification number (VIN), and the general condition of your car. You must also have an original title to the vehicle and make sure it is in your name and not tied to it. Armed with these basics, you’re ready to donate your car.
Tax laws determine how much you are allowed to deduct for the donation. Simply put, if the charity you’re donating the vehicle to sells the vehicle for more than $500 and uses the proceeds from the sale to help its mission, you can deduct the amount from the sale of the vehicle. However, if the charity gives the vehicle to a beneficiary to use as a means to help that person, or if the vehicle sells for less than $500, you can deduct the fair market value of the vehicle.
Some of the best-known car donation programs run by charities themselves include:
1. The National Kidney Foundation – Call 1-800-488-CARS
2. The Salvation Army – Call 1-877-SA3-AUTO and you can arrange to have your vehicle picked up at no charge to you, or dropped off at a Salvation Army location near you.
3. The Breast Cancer Society – Call 1-866-923-7512
4. Easter Seals: Call 1-888-631-6833 or visit their website
Car donation programs accept vehicle donations, sell the cars, and then give a percentage of the proceeds to a charity. In this type of donation, you can only deduct the amount of sales.
One program that delivers a donated vehicle directly to a recipient in need is 1-800-Charity-Cars. You can call them at 1-800-242-7489. If your vehicle meets the established criteria, it will be turned over directly to an individual or non-profit organization. If not, it will be sold and the proceeds will be used for his charitable missions.
Another option for donating your car is to contact the local charity of your choice directly and find out if they accept vehicle donations and their process. Be sure to find out how they will use the donation and the process they use to provide you with the necessary certification for your tax deduction.
Donating your car to charity is one way that you and the charity can come out on top.
