How to Donate a Car

Find a charity that accepts car donations directly.
If possible, avoid for-profit middleman organizations that advertise so widely to handle your car donations. By finding a charity that handles the transaction itself, you can ensure that 100% of the profits go to the charity. It’s possible that some of the charities you already support have a car donation program that you’re not aware of. Check with them first. If not.
Make sure your desired organization is one.
501(c)(3)

Although many organizations may claim nonprofit status, donations to 501(c)(4) organizations are generally not tax-exempt. These are political organizations that are allowed to lobby our government. Make sure your intended recipient has 501(c)(3) public charitable status.
Deliver the vehicle properly to the charity.

Some charities will ask you to leave the assignment of ownership blank on the charitable donation papers, so they don’t have to re-title the auto. If your charity asks you to, find another charity. If you do not surrender your car to an officially designated nonprofit organization, you will be held responsible for any parking tickets that are subsequently incurred, or if it is used in a crime. Is.

You will be responsible. Remember, the charity you donate your car to will probably not use your car to deliver food to those in need, but rather sell it as soon as possible. When someone buys it from them at auction and doesn’t bother to register the car, it’s still yours in the eyes of the law.

Use the fair market value (FMV) for the car.

There are several exceptions that allow you to use the Kelly Blue Book or NADA Guide, but you must use the FMV, not just the highest value listed for the year and make of your car. Use FMV when:

Charities keep and use the vehicle instead of selling it.
The charity improves the car before selling it,
Your car is sold to a low-income person at a discounted price,
or if the car is worth less than $500.
Otherwise, you can only deduct the amount for which the charity sells the car at auction as indicated on the written receipt the charity sends you.
Complete your paperwork.

Non-cash donations are the most common trigger for an IRS audit, so it’s important to keep complete documentation of the vehicle donation. In particular, if your car is worth more than $250, you need to get and keep a written acknowledgment from the charity. Additionally, if your car is worth more than $500, you must complete Section A of IRS Form 8283 and attach it to your annual tax return. Additionally, if your car is worth more than $5,000, you must have an independent appraisal and complete Section B of IRS Form 8283.

  1. Complete the form.
    Complete our easy-to-use online car donation form. We need some basic information about you, your vehicle, and where you need to pick up your vehicle. You can also call 1-888-227-5500 to start your donation.
  1. Schedule a car pickup.
    Your vehicle can be scheduled for pickup within 24-48 hours after your title is received by our Vehicle Donation Processing Center.
  1. Get a tax receipt.
    After a few weeks, you will receive a tax deduction receipt that you will need to file your taxes.

Effect of car donation
Your charitable vehicle donation*:
Ride icon
Provide up to 24 rides.
For the treatment of people suffering from cancer

Support icon
Support up to 24 people.
Get information and answers through our 24/7 helpline.

Accommodation icon
Provide 12 nights of free accommodation.
For patients who must travel for treatment at our Hope Lodge® facilities.

*Donation impact price is based on average car donation.

Leave a Reply

Your email address will not be published. Required fields are marked *