How to Donate a Car to Charity

Do you have an old car that you want to get rid of by donating to charity?  By donating a car to charity, you can avoid the hassle of trying to sell it your and you also get a tax deduction.  However, donating a car may not be as easy as it seems.  Before you donating your car, be sure you do some research to make sure everything goes smoothly in the donating process.

First off, you want to make sure the charity that you donate to is legitimate.  You can check websites like the Better Business Bureau and Charity Navigator to check out the charity.  You want to avoid middlemen because they are typically for-profit organizations.  They keep more than 50 percent of the value for themselves and the charities don’t get much of the value.  If you plan on getting a deduction for your car donation, you should make sure that the charity is an IRS approved 501(c)(3) organization.  Typically, religious organizations such as churches and temples would qualify.  In order to get the deduction, you will also need to present to the IRS the value of the vehicle.  Make sure you get a receipt from the charity stating the amount of money that was made off the vehicle if they sold it.  If the charity does not sell the vehicle and uses it, then you use a fair market value which you can get from Kelley Blue Book. 

When donating your car to a charity, make sure you keep all copies of paperwork involved.  Keep the receipt from the charity and a copy of the title change.  You will also need an independent appraisal if the car was worth more than $5000.  If the car was worth more than $500, then you will have to use IRS form 8283 when you file your taxes.

By doing some research you will save yourself a lot of trouble down the road and you will also be able to get the maximum deduction for your car.