Donate A Car to Charity

Donate a car to charity to easily get rid of your used car and also get tax deductions. Charities may keep your car or sell it to generate funds. Either way if you donate a car to charity, it will make a difference in thousands of lives. However, you should carefully research the charity and take care of the following points to avoid problems in the future.

Find a Deserving Charity To Donate A Car to Charity

Transfer the Vehicle with Precaution:

Transfer the title of your car to the charity and make sure that you do not leave the space for ownership on charity donation papers blank. Report the transfer of vehicle titles to your State department for motor vehicles or licensing.Determine when you’ll need to report the Fair Market Value:

You won’t need evidence of sales price of your vehicle if the cost of your vehicle is below five hundred dollars or if the charity decides to use the vehicle instead of selling it. You can simply report your car’s fair market price using Kelley’s Blue Book.Record all Transactions and Preserve Documentation:

If the fair market value of your car is greater than five hundred dollars, you’ll have to submit Internal Revenue Services form 8283 while filing your tax return. If its worth is more than five thousand dollars, you will need a third party appraisal. Proof of donation such as receipt from the charity and copy of title transfer will also be required.

Be thorough when you donate a car to charity:

Following all these steps may be a bit cumbersome but it is necessary if you donate a car to charity, the charity gets most benefit and you also get the maximum possible tax deduction.Make sure the charity you chose is a registered one. Only a charitable institute that is registered with the Internal Revenue Services as a non-profit organization is qualified to receive tax deductible donations. If you donate a car to a charity that is not honest not only do you lose your tax deduction, the car is not used for its intended purpose. You can research charities’ track records online through Internal Revenue Service’s official website.

If you want to donate a car to charity, please visit

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