Do you have a used car that you don’t need anymore? You may want to consider donating your used vehicle to charity. By donating you avoid the hassles associated with selling it, avoid the potential of repair costs, help a worthy cause and score a tax deduction at the same time.
Donate car for tax credit – You can use the price the charity got for your car in a sale as the amount of your deduction, this is true in case they sold it in auctions. If in case the charity sells the car at a discount to a needy individual or keeps the car for its own use, then you can claim a deduction for its fair market value.
Where to Donate My Car? There are a lot of charities where you can donate used cars and they will even pick it up for you, but before you do that one important tip to consider is to make sure that you’re donating directly to charities. Some middlemen or organizations will keep some percent of the value of your car for themselves and will just donate a portion to charity. To avoid this make sure to contact the charity your interested in directly and that charity is non-profit.
Another important thing to consider before you donate used cars is to make sure that the charity is an IRS-approved 501(c)(3) organization. The IRS allows vehicle donors to receive the full market value on their vehicle as a full tax deduction, so make sure that you keep a thorough list of paper trail. Some important documents to keep are IRS Form 8283 for your tax return, outside appraisal if necessary, proof of the donation and a copy of the title change.
1. Cars 4 Homes – Habitat for Humanity is a nonprofit Organization. When you donate used cars to Cars for Homes, you will help your local Habitat for Humanity build and rehabilitate houses with families in need of affordable shelter. They accept Car, Truck, Boat, RV, Motorcycle, Construction or farm equipment and any other vehicle running or not. They provide additional tax documents when required by IRS regulations as a result of the sale value of the vehicle. An IRS approved 501(c)(3) charitable organization.
2. Wheels4Hope – Non-profit, faith-based car donation program in Raleigh and Greensboro, NC. They provide transportation for low-wage families and individuals. An IRS approved 501(c)(3) charitable organization.
3. Kars4Kids – Make a difference in a child’s life. They accept all cars, most boats and rv’s, and any type of vehicle in any condition, running or not. They fund educational, developmental, and recreational programs for Jewish youth and their families. An IRS approved 501(c)(3) charitable organization.
4. American Cancer Society Cars for a Cure® vehicle donation program – Proceeds from the sale of your donated vehicle fund lifesaving cancer research, education, advocacy, and patient services programs. An IRS approved 501(c)(3) charitable organization.
5. Purple Heart Foundation – A not-for-profit charity and national organization composed of combat-wounded veterans who have been awarded the Purple Heart medal. They support veterans & their families. You can donate car, truck, boat or RV. An IRS approved 501(c)(3) charitable organization.
Read our Donate Car for Tax Credit tips!
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Topic: Where to Donate My Car