How to Make a Charity Car Donation

How to Make a Charity Car Donation

If you have an old car sitting there in your garage, put it to good use and make a charity car donation – you will be doing your part to help others and at the same time qualify for a tax deduction.

Numerous charity organizations will welcome your charity car donation. A charity group will be more than willing to sell your old car and use the proceeds to fund their many worthwhile projects. And while the golden rule in giving is to not expect anything in return, with a charity car donation you can in fact expect to gain something for yourself.



First, look for a charitable organization that has a charity car donation program. You can ask around your local charity groups or you can search online. When you speak to a representative about your charity car donation, be sure to ask how they go about the process including their rules and procedures regarding tax deductions.

In addition, make sure the organization is eligible otherwise you cannot make a tax deduction claim for your charity car donation. You can contact the IRS hotline, to make sure if your charity car donation is tax deductible. Usually, you can claim up to $500 in tax deduction and sometimes more depending on how much your car was sold. Your car’s fair market value depends on factors such as the year and model of your car, mileage and the car’s condition. Lastly, once you have finalized your charity car donation keep all relevant records as proof of your donation.

You can find agencies who offer services to process your charity car donation. Just be sure they are legitimate agencies. Also before working with any go-between agents, find out what percentage of the proceeds they will keep. You would want to make sure the charity and not the agent will get more of out of your charity car donation.

If you are working directly with a charity group, ask them how the proceeds of the car sale will be used and how much will go directly to funding the cause you want to support. Some get a percentage out of the sale of your charity car donation for internal operations while some put 100% to project funding. There are also other groups who will take your charity car donation for their own use much like a company vehicle. Before you commit to anything, it will be good to know exactly where your donation will go and that you are comfortable with it.

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