Car Donation News and Programs

In the US it’s possible to donate a vehicle (usually a car, but it can also be a truck, boat, RV or any other kind of transportation) to certain charities, and in return you would be able to claim a tax deduction on your income tax return. If the car donation is accepted, the charity takes care of any towing expenses and provides you with the necessary documents for tax purposes. If a charity does not provide concise answers about where the proceeds from donations will go, you might want to consider making your car donation to another charity.

If you don’t plan to deduct the vehicle donation on your tax return, no further action by you is necessary. By donating a car, you can eliminate spending money on unnecessary repairs, advertising fees and the problems or liabilities associated whenever you sell a vehicle. Some charities even have the ability to repair or perform maintenance and prepare a donated vehicle for sale.

Best of all, by not selling the car yourself, you don’t have to worry about total strangers calling you to get information and find out where you live, or coming to your house to see the car, truck or other vehicle. Make sure you have the vehicle title and keep it handy.

Although some states require smog certificates and/or safety inspection certificates, you can still donate your vehicle without these certificates. You used to be able to deduct the fair market value of the vehicle at the time of the deduction, but not any more. Some car donors, who are in need of a new vehicle themselves, even buy recently donated and repaired vehicles. You may also donate your car online to a number of individual charities or car donation programs.  Also, if your car is still running, consider dropping it off with the charity yourself to save the organization from paying for any towing costs.

As the donor you benefit from the donation by receiving a tax receipt for the highest possible value for the vehicle. Also your vehicle must have all four of its tires inflated to be accepted and must not have any major parts missing.

If your vehicle is no longer of use to you, it can still go a long way towards supporting a charity of your choice. Repairable vehicles are accepted provided they are repairable for less than what it could sell for. The charities can then donate the vehicle to the eventual recipient directly or sell the vehicle, and the money is then given away as of the charity function.

One of the exceptions to the new IRS regulations allows donors to still deduct the fair market value of their vehicle, provided that the charity materially improves the vehicle. Normally in wear and tear, minor repairs and breakdowns, an average vehicle owner might spend more than $4000 per year on their vehicle. And some charity car donations may not qualify for a tax exemption because of the vehicle condition.

There are a few exceptions in the new tax law regarding the fair market value section. One is, you may base your deduction on the vehicle’s fair market value if the charity sells it to a needy individual at a discounted price or if the charity uses the car as part of its mission rather than selling it to another. If you have an unused vehicle just sitting around,  you can receive a car donation tax deduction up to the limits allowed by the IRS.

If you think that donating an old vehicle is a good way to ease your taxes you should check into it today. Major charity car donation programs include: the Salvation Army Car Donation Program and the Easter Seals Vehicle Donation Program.

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