Things You'll Need:
- Car
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Step 1
The first step is to decide on the charity you would like to donate your car to. There are thousands of charitable organizations that accept old cars, so ask your charity of choice if they do.
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Step 2
You may also want to consider using an organization that will act as a middleman between you and a charity, arranging for pick up etc. Just use caution as though some donate all or most of the proceeds to charity, some keep a substantial portion. Many of these companies let you choose donate a car to the charity you choose. Others just pick themselves.
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Step 3
Make sure the company you are donating to is a tax exempt organization. You can check this at the IRS website or call the IRS phone number 1-877-829-5500 (toll free)
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Step 4
Keep in mind that tax rules have changed. Some years ago you would be able to deduct blue book value when you donated a car to charity. But because people took advantage of this, tax rules have changed. Your tax deduction will depend on if the charity will be using the vehicle, selling it right away etc. Check with the charity to find out the tax deduction you will receive.
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Step 5
Make sure when you donate a car to charity, you report the it to the Department of Motor Vehicles and complete all paperwork so the vehicle is properly transferred.
Comments
tjzerrer said
on 7/26/2009 Excellent tip about checking with the IRS. Thanks.
blingaling said
on 12/1/2008 I've been curious about this for a long time. Thanks for writing an informative, detailed article.
RiteNow said
on 11/12/2008 Great and helpful information. Thanks. 5*