donating used car

Keep a thorough paper trail. If your donation is worth more than $500, you’ll have to attach IRS Form 8283 to your tax return.

If it’s worth more than $5,000, your documentation must include an outside appraisal.

You’ll also need proof of the donation used car, such as a receipt from the charity and a copy of the title change.

Be detail-oriented. This paper trail may seem cumbersome, but think about it: This may be one of the biggest charitable donations you ever make. 

By taking the time to dot the i’s, you can make sure that the charity gets the most benefit and you get the biggest possible deduction.

donating a used car

Your estimate of the donation’s value probably won’t cut it. If your donating a used car or boat is worth more than $500, the IRS is going to want to see evidence of how much the charity got for it. (Most charities that accept these donating a used car turn around and sell them for cash.)

You’ll need to get a receipt from the charity revealing exactly how much money it made.

Know when you can report the fair market value. You won’t need evidence of the sales price if the charity keeps the vehicle or vessel and uses it in its charitable work, or if your donating a used car is worth less than $500.

Then you can report its fair market value based on listings from Kelley Blue Book and similar sources.

donated vehicle or donated car

Know the status of your recipient. In order for you to qualify for a deduction, the charity that gets your donation must be an IRS-approved 501(c)(3) organization. Your church, synagogue, mosque or temple likely qualifies. (Check first just to make sure.) You also can visit the Internal Revenue Service’s Web site and search for Publication 78 to find other qualifying non-profit organizations. (Just type “78” into the search field on the IRS home page and you’ll be directed to the right publication.)

Do the delivery yourself. Once you’ve identified a worthy charity, recognize that it will have to pay someone to pick up your car or boat for you. To help the charity maximize the benefit of your donation, drop the car or boat off yourself.

Transfer the car with care. Want to eliminate all risk of running up parking tickets and other violations after you’ve said goodbye to your donated car? Then formally re-title the car to the charity, and report the transfer to your state’s department of motor cars or licensing. Never agree to leave the ownership space on the charity donation papers blank.

donations car for free

Find a worthy charity. If the charities you normally support aren’t equipped to accept such donations, do some homework until you find a reputable charity that is. You can research charities’ track records online at this Better Business Bureau site and through Charity Navigator. 

Check the math. If you still feel compelled to use an intermediary organization – possibly because you’re busy – at least ask the organization how much of the donations car or boat’s value will go to charity. If the organization simply gives charities flat fees — say, $100 for a used vehicle regardless of its value, or $2,000 a month — your donation may not be eligible for a tax deduction.

donate your car

Avoid middlemen. Numerous for-profit intermediary organizations advertise aggressively on TV, billboards and elsewhere, 

 offering to help you donate your car to charity. Here’s the catch: These organizations typically keep about 50 percent to 90 percent of the car value for themselves, and the charities don’t get what they could have gotten. 

To prevent this, check directly with charities you admire and find out whether they accept car or boat donations.