How to Donate a Car to a Nonprofit Organization

Don't sell your used car, donate it.

Before donating any vehicle to a charity, do some research so you understand how your donation will be processed and how it will be used or distributed to a person in need. If the charity keeps your car and uses it for fundraising missions or outreach programs, for example, the benefit of having the vehicle is just as high. Nonprofits typically offer car donation information on their websites. By donating your car to a charity, you are entitled to a charitable contribution deduction against your income tax.

Things You'll Need

• Car title
• Kelley Blue Book
• Donation receipt

Instructions

1. Confirm the charity's 501(c)(3) status, which is a requirement for you to receive a tax deduction for your donation.

2. Contact the charity to inquire about car donation procedures. Not all charities permit a donor to name the family or person who will receive the car donation, so inquire about internal procedures before making your donation, especially if you want to name a particular beneficiary.

3. Transfer your vehicle's title over to the charity. Record the Kelley Blue Book value of the vehicle at the time of the transfer and take photographs to document the vehicle's condition. Kelly Blue Book is available in print and online.

4. Drive the vehicle directly to the charity or use a vehicle donation processing center to complete the transfer. If you cannot drive the car to the charity and a third-party delivery service is not available, tow the car instead. Pay the applicable towing fees as a gesture of good will.

5. Request a donation receipt from the charity for tax purposes. Nonprofits have standard receipts that are issued for each donation, especially high-priced donations. The receipt must show the final price that your car was sold for, if at all, at auction, which may differ from its Kelley Blue Book value.

6. Complete IRS Form 8283 and submit it with your annual taxes if the vehicle is worth more than $500. Because of the American Jobs Creation Act of 2004 you can no longer deduct the published fair market value of your vehicle if it exceeds $500. You must base your deduction on the final sale price of your vehicle after, and if, it is sold at auction by your charity.

Tips & Warnings

• If your vehicle is worth $5,000 or more, you must obtain an independent appraisal.

References

• Charity Watch: Tips for Donating a Car to Charity
• Charity Navigator: Guide To Donating Your Car
• Charity Navigator: How Do I Donate My Car to Nonprofit?