Where to Donate a Car
- There are some general strategies you can use to locate where to donate a car. Check with your local United Way or with the agency in your state that regulates charities (usually this is under the state Department of Revenue). Below are some examples of specific charities and car-donation services to help you get started. Before you donate a car, you should verify that the organization is legally able to accept donations. Otherwise the IRS will not allow you to take a tax deduction. Go to the IRS website and check Publication 78, which lists organizations that can accept donations (a link to a searchable online version is below). Churches are not required to register and may not be listed, but are eligible to accept donations.
- Some national organizations operate their own car-donation programs. The National Kidney Foundation (kidney.org) uses money raised from selling donated cars to fund research, patient-assistance programs and public education. The Order of the Purple Heart is a veterans' organization that assists disabled veterans (purpleheart.org). Kars4kids is a national network of state charities that provide food, educational programs and shelter for at-risk children (kars4kids.org). The Salvation Army (salvationarmyusa.org) also accepts car donations to help fund its numerous programs.
- Besides national organizations, many local and small nonprofit organizations have car-donation programs. Because of the logistics involved, most utilize a car-donation service such as Donate for Charity (donateforcharity.com). For example, the Glaucoma Research Fund uses revenue from car donations to fight glaucoma, the leading cause of blindness in America. Blazesports operates sports programs for disabled youth in many cities across the United States. Car-donation services all have online websites and list the charities and nonprofits they work with, so they are an excellent place to find where to donate a car.
- Usually, the easiest way to donate a car is to fill out a donation form online. If you prefer, you can call many organizations toll-free. In either case, you will need the Vehicle Identification Number off the car title, the year, make and model of the car, and the odometer reading. You must also provide a description of the physical condition of the car. In most states, this must include disclosure of any mechanical problems or damage. Once you've completed the form, the organization or car-donation service will contact you in a few days to arrange for the physical transfer of the vehicle.
- Virtually all car-donation programs provide free vehicle pickup. Some, such as the National Kidney Foundation and the Order of the Purple Heart, have drop-off locations in many cities and encourage you to use these. This reduces expenses and leaves more for their programs. Either way, you will need to transfer the title and have your signature notarized. In some states, you also have to have a copy of the vehicle registration. Remove any personal items from the vehicle --- and don't forget to hand over the car keys.
- Under IRS rules, you can deduct the amount the car is sold for. The organization you donate the car to is required to send you Form 1098 C, documenting the sale price within 30 days of the sale. In the event the car is sold for less than $500, you may deduct fair market value up to $499. You can also deduct fair market value if the vehicle is retained for the organization's use or they do substantial repair work. When the amount of the deduction is $500 or more, you must fill out Form 8283 and include it with your itemized tax return. In cases where the value of the donated car is $5000 or greater, you may have to have the car appraised for the IRS to allow the deduction.
