How to Donate Your Car To Charity

How To Donate Your Car or Truck

Donating your car has became the trendy way of helping cancer research continue in 2010. Car donors are realizing that selling your car is too much of a hassle. With the fast paced environment we live in, we do not have time to waste. In addition, with many people working overtime to compensate for the struggling economy (if you have a job), people are not having the time to help their local community. The entire car donation process can be completed in a matter of minutes. However, many Americans are confused on how to donate their car. Read this step by step article to find out how to donate your car.

How to Donate your Car

Look for a well known charity that accepts vehicle donations. Do research on what type of charity you would like to support first and follow these guidelines.

1. Determine if the charity is a non-profit 501-C3 organization. This signifies that the charity is allowed to accept car donations and legally claim them as atax deduction.

2. Find out if the charity has free towing and pickup services. Most car donation programs offer free towing.

How to Donate your Car: Determine Fair Market Value   

Determine the fair market value of your car. The IRS specifies that the car donor is responsible for determining the value of their car. 

1. Use Kelley’s Blue Book to determine the value of your car. Click the link below to visit their site.

www.kbb.com/



2. Give a lower estimate for the value of your car because the IRS will never use the highest value. Your accessories, mileage and condition will affect the value of your car. The total amount of your tax deduction is based on final sales price of your car or truck.

Tips

• *Most car donation services accept all types of vehicles such as cars, trucks, vans, mini-vans, SUV, RV’s, trailers and motorcycles. Additionally, your car does not have to be running to be eligible for a car donation.

How to Donate your Car: Car Donation Form

Fill out an online car donation form and schedule a pickup. It will look similar to the image below. It just asks for information about your vehicle such as year, model and condition.

How to Donate a Car: Tax Deduction Receipt

1. The selected towing company will give you a tax deduction receipt for your vehicle donation.  

2. Make sure that the receipt has the organizations name, address, fair market value for your car and the date. 

3. If the car is worth in the excess of $500, the IRS will require an IRS Form 8283. If you are donating a Porshe, you may need to fill out a 8283 form!

Tips

• Also, call the DMV and insurance company to let them know you are no longer the owner of the vehicle.

How to Donate a Vehicle: Car Donation Charity Auction

Your car is than sold at an charity auction. Contact the car donation company to find out any other details about your car. Then you will be able to add your car donation on your tax return!