Donate My Car To Charity

If you think “I want to donate my car to charity”, you are one of the many who engage in philanthropy. Some charities will personally use donated cars to haul good or transport individuals, while others will sell the cars at auction in order to raise money. Sadly, sometimes these charities are taken advantage of by unscrupulous car dealers, who give the charity a flat fee for every car they sell, often as little as $50 each.

Donate A Car Charity

Before the wish I want to donate my car to charity becomes reality, it is important to become educated in the process an find the right donate a car charity .

Car Donation Tax Break

If you plan to use the donation as a tax deduction or car donation tax break, you must be aware that new legislation in 2004 strictly limits your rights.

Be sure that the charity is able to receive your tax deductible contribution as evidenced by their IRS tax-exempt status documents. Ask for a receipt with clear documentation of the car’s value. Take pictures before you donate a car to charity. Retain all receipts for upgrades, servicing, or new tires on the vehicle, as these will be necessary to prove the value of the vehicle.

Various federal tax deductions apply depending upon the value of the car, how it is sold, and to whom it is donated, so educate yourself in these processes and legal rights.

Donate Used Car Charity

For example, if the car is worth less than $500 and you want to find a donate used car charity, the estimated value can be reported as a direct tax deduction. On the other hand, if the value of your car is more than $500 an IRS form 8283 must be attached to the tax return along with a written acknowledgment notice from the receiving charity.

Donate Your Car Charity

If the donate your car charity plans to sell the car, they must offer the donor documentation of the final sale price. For estimated values between $500 and $5,000 the Kelley Blue Book, the NADA guide, or the Hearst Black Book may be consulted to determine actual worth. If the car’s value is more than $5,000, the donor must obtain an independent automotive value appraisal and file IRS form 8283, section B.

It is equally important to keep in mind that it is the donor’s sole responsibility to provide legally binding, accurate documentation, pay any penalties, report correct values, and obtain necessary proofs. The receiving charity is in no way obligated to provide anything to the donor, although the vast majority will do so automatically. The IRS has set up an online guide for car donations, as well as produced a full publication.

Those who intend I want to donate my car to charity are advised to seek legal tax advice from a trusted accounting professional.