How Can I Be Sure That I'm Donating My Car to a Legitimate Charity?

Car donations are tax deductible.

With so many organizations seeking charitable donations, it's important to verify an organization's charity status, which can be confirmed with just one phone call to the Internal Revenue Service, before making a donation. You also want to familiarize yourself with the charity's donation procedure and obtain a receipt for your records.

Identification

To determine whether a charity is legitimate, you'll need to contact either the charity's organizers or the Internal Revenue Service at 877-829-5500. Explain that you want to make a donation and want to confirm the charity's 501(c)(3) status before doing so. 501(c)(3) is a type of incorporation used to set up a charitable corporation.

Donation Proceedings

Before donating a vehicle to a charity, contact the charity and inquire about drop-off procedures. For example, not all charities offer a pick-up service for donated vehicles. In such cases, you'll need to drive the vehicle directly to the charity or use a vehicle donation processing center. If neither option is available, tow the vehicle instead.

Transfer Process

To complete the donation process, you'll need to transfer the vehicle's title over to the charity. To find the vehicle's fair market value, visit the Kelley Blue Book website and perform a quick search using the vehicle's make, model and year. Take photographs of the interior and exterior of the vehicle to document it's condition. Keep the photographs for your records.

Taxes

If you're planning to seek a tax deduction, you must obtain a receipt for your donation. Nonprofits have standard receipts they provide for high-value donations, so obtaining one will be easy. Be sure the receipt conveys the vehicle's fair market value. If the vehicle is sold at auction, the receipt must indicate the vehicle's sale price. To claim the deduction on your taxes, complete IRS Form 8283. Submit the form with your annual taxes. As of April 2011, it is only necessary to complete this form if your vehicle's fair market value exceeds $500. The American Jobs Creation Act of 2004 requires you to base your deduction on your vehicle's sale price after and if it is sold at auction.

References

• Donate Car For Charity: Car Donation How to in Five Easy Steps
• Charity Navigator: Guide To Donating Your Car
• IRS: A Donor's Guide to Car Donations
• American Institute of Philanthropy; "Tips for Donating a Car to Charity"; April 2011
• CharityNavigator.org; "How Do I Donate My Car to Nonprofit?"; Kristen A. Lee; September 2007