How to Donate an Auto to Charity

If you have a clunky car and you do not know what to do with it, one option may be to donate the car to charity. Since you will be helping others with your donation, donating a car can be a rewarding experience. There are many non-profit organizations to which you can donate your car: the American Red Cross, YMCA, Cancer Research Institute and others. If the organization to which you donate your car is approved by the Internal Revenue Service (IRS), the donation can be used as a tax deduction.

Difficulty: Moderate

Instructions

Things You'll Need:

• Used car
• Phone book
• Internet
• Charity organization

1. Look for the type of charity to which you would like to give your car. Do research online to find out about the organization and how much it will give for the car. Make sure it is a reputable non-profit organization.

2. Research and avoid third-party organizations. Third-party organizations keep about 50 percent to 90 percent of the car's worth, leaving the charity with much less.

3. Find out if the organization you are contacting is approved by the IRS. Visit the IRS website and search for Publication 78 to find other qualifying non-profit organizations.

4. After selecting the non-profit organization to which you want to donate your car, transport the car to this organization. Transporting the car yourself will reduce costs for the charity.

5. Get documents or receipts from the organization to claim your tax deduction.

Tips & Warnings

• Check with the Better Business Bureau, Charity Navigator, IRS and Consumer Reports Money Adviser for more information.
• Every state has different regulations for donations.

References

• http://www.consumerreportsmoneyadviser.org
• http://www.charitynavigator.org
• http://www.bbb.org

Resources

• Love to know charity