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Should I Donate My Car to Charity?

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  • Written By: Diana Bocco
  • Edited By: Bronwyn Harris
  • Last Modified Date: 15 August 2014
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You may have never considered it before, but car donation is becoming a popular way for people to get rid of unwanted vehicles and get a tax break in the process. If you never consider car donation before, here are a few tips on how to handle the process painlessly.

Donating your car is easier than you may think. You can do it locally by contacting the charity of your choice, or go online to find a charity that will come take the car away without any effort on your part. This may be the best way to handle car donation if your vehicle is no longer running or has some major issues that make it unsuitable for every charity. If you think dealing with the car donation on your own is too difficult, there are even services that would handle the exchange for you for free.

When you are looking for a charity, make sure you choose one that is registered as a 501 non-profit public charity with the IRS. This means the organization is legally allowed to accept donations and provide tax benefits. Charities that accept a car donation will have paperwork already in order for such contributions, and the exchange should be fairly straightforward. This paperwork is key to filing for a tax deduction at the end of the year, so be wary of any charity that claims you don't need it.

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Car donation has become so popular that charities are now offering incentives to get you to choose them over other organizations. These incentives vary from free hotel stays to free bicycles, gym memberships, or car rental coupons. The incentives are legal, so don't be afraid to choose a charity that offers them.

Once the car donation part is done and the car title has been transferred, you can then claim the donation as a tax deduction. If the fair market value of your car is over $500 US Dollars, however, you may need additional paperwork from the charity, such as a bill of sale after the organization has disposed of the vehicle. Laws vary from state to state, so you should research all your options before you take the final step.

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bettina
Post 3

The process of donating a car nowadays is quite easy, so if you have an old car or junk ones that you would like to donate to charity, then do it now since we can help people who are in need.

I think Wheels for Wishes is one of them as they are reputable one and if you are planning to donate a car, as far as I know, you can get a charitable tax deduction.

anon21738
Post 2

Thanks for the info. Do you have any suggestions of those company offering incentives for your car donation? Also, should you donate the car if the organization does not handle the title transaction?

olittlewood
Post 1

what if your car needs some potentially major repairs, but is still running for the most part? can you still donate it to a charity? if not, how the heck do you get rid of the junker? are there business that will cart your car off that will pay you for the parts?

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