How to donate a car to charity

Do you have a car that you are thinking about donating to charity? In most instances charities will take your car whether it runs or not! And as you may know you can get a tax break for donating a car to charity, however there are steps you need to take to make sure that you get that tax donation.

Before donating a car to charity you should check out the charity; check the value of your car; and see what your responsibilities are as a donor. You can get some guidance from IRS publication 4303 or keep reading.

Select your charity

In order claim a tax deduction for donating your car to charity to be sure to that the charity is a qualified organization. Otherwise, your donation will not be tax deductible. The most common types of qualified organizations are section 501(c)(3) organizations, such as charitable, educational, or religious organizations. To verify an organization’s status call the IRS Customer Account Services division for Tax Exempt and Government Entities at (877) 829-5500 (toll-free). Have the charity’s correct name and address when you call.

Tax Deduction Qualifying

You must itemize deductions on your Schedule A of Form 1040 in order to get your charitable tax deduction. Some limitations may apply to your individual tax situation, such as your deduction cannot exceed 50% of your adjusted gross income.

Determine the Value of Your Car

You can only deduct the fair market value of your car on your taxes. This is not the same as the blue book value. The fair market value is the price a willing buyer would pay and a willing seller would accept for the car, when neither party is compelled to buy or sell. Note that you will need to obtain written acknowledgment from the charity if the total deduction you are claiming for a donated car is $250 or more. And if If the deduction you are claiming is greater than $5,000 you must get a written appraisal of your car.

Other requirements

You will need to transfer the title of your car to the charity. If you do not have your car title, do not worry. Most charities can assist you in obtaining the title for the car you are donating.

A lot of charities can also pick up or tow your car if necessary. This is typical of local charities at least. Of course, if you want to maximize the amount of money that goes to the charity then you should get the car to them yourself.

Charities take items other than just vehicles for donations. You can donate your boat, your trailer, your RV and even your motorized wheelchair or scooter.

These tips should help steer you in the right direction to donate your car to charity!