How to Donate Your Car

Donating to charity is a relatively painless way to get rid of a car when you don't have the time to sell it or don't think you can get what it's worth. While not every car is acceptable, donating a car to a charity lets you deduct its fair market value from your taxable income.

Difficulty: Easy

Instructions

Things You'll Need:

• Kelley Blue Book
• Kelley Blue Book
• Tax receipt

1. Find a charity that accepts cars without charging a large removal fee. Make sure the organization is a registered 501(c)(3) charity or qualified religious organization that can lawfully accept your donation and from which you can lawfully claim a deduction.

2. Determine the fair market value of your car. According to the IRS, you are responsible for determining this; use the Kelley Blue Book or IRS Publications 526 ("Charitable Deductions") and 561 ("Determining the Value of Donated Property"). If it's worth $5,000 or more, have the car appraised by a certified professional.

3. Get a tax receipt with the charity's name and federal tax ID number, donor's name, date of donation, as well as the year, make and model of the donated car.

4. Notify the DMV and your insurance company that you no longer own or insure the vehicle. Follow state regulations on what to do with the title and plates. Keep your receipt and completed IRS Form 8283 for tax time.

Tips & Warnings

• Religious organizations aren't required to apply for an IRS tax exemption in order to be qualified.
• The tax break or refund could be the same amount as if you'd sold the car, but without the bother. IRS Publication 78 (at irs.gov) can verify if an organization is qualified to receive deductible contributions.

[moderator]

on 8/25/2009 Now that the cash for clunkers program is over, the next best thing is to get a tax refund by donating your car to charity. After combing the internet for hours, I found the most reliable car donation charity by dialing 1.800.990.0599 It took me a long to find a decent charity, so I figured I'd save you guys the time and effort...good luck!

[tjzerrer]

on 7/21/2009 Great information. Thanks.

[kcampese]

on 6/22/2009 Donate car to Cars4Charities Car Donation Center for a great tax deduction. Help 1 of over 1,000 charities. contact 866.448.3487 or www.cars4charities.org

[tina10]

on 2/20/2009 I am a mom of a special needs child in need of a car. I didn't find any charity that are donating the cars that they receive. Would be nice if people would donate to the person in need directely. i would be very happy and greatful if that ever happens to me.

[seasol]

on 12/31/2008 It is a good thing to donate your car to a charity!

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