Are you thinking of selling or trading in that old car, boat or RV? A charitable donation of your automobile can make a difference in the lives of the less fortunate. Here are some frequently asked questions about car donations for charity.
What can I donate?
Most vehicles and boats are accepted, including cars, trucks, vans, trailers, boats, and recreational vehicles.
Why should I donate my vehicle?
Your donation may be tax deductible if you donate to an IRS nonprofit charitable organization. Donations to nonprofit charities that are classified under 501( c ) [3]. Be aware however, that each individual is different, so check with a tax professional before deciding to donate.
Do I need my car title to donate a car?
While the car title is an important factor, most charities will work with you to find a solution if the title is unavailable. The Department of Motor Vehicles in your city can provide you with the necessary paperwork to complete your donation.
What if my car doesn’t work? Can I still donate it?
Most vehicles are accepted whether they are running or not. Some older cars though, may not be donated if the value of the car is less than the cost of towing.
How is the market value of the car determined?
The IRS allows the donor receive a fair market value. While most charities will not determine this value for you, the value of your car can be found on the Kelly Blue Book Web site (www.kbb.com). The value of your car is then calculated by make, model, year, mileage, and condition.
The IRS also provides information with fact on how you should determine your car’s value. A Donor’s Guide to Car Donations is available in PDF format from their website (www.irs.gov). The IRS will allow you to determine the value of the car if the value is under $5,000. Over $5,000, you must obtain an appraisal from an independent, certified appraiser.
How is my car taken to the charity of my choice?
Your car will be towed by a professionally licensed, bonded and insured towing company at no expense to you.
Who are some of the charities in which my car may be donated to?
Car donations for charity may go to some of the following organizations:
The American Red Cross, Big Brothers and Big Sisters of America, City of Hope, Disable Veterans, Habitat for Humanity, Last Chance for Animals, Rescue Missions, Special Olympics, United Way and the Wildlife Fund. Numerous charities are seeking donations, so this is only several of the hundreds of nonprofit organizations in need of your help.
Donating your used vehicle not only offers you a tax break, but provides you with a good feeling knowing that your old car is going to help other people in need. Charities rely on the kindness of others to donate their time and/ or unwanted vehicles, so that others may benefit from the generous gifts. When you consider car donations for charity, just remember that one man’s trash is another man’s treasure.
By R. S. Wagner