Have an old clunker and considering donating that vehicle? Donating a car to charity solves two problems: It helps you get rid of an aging car quickly and easily, while allowing you to support a worthy cause. Better still, you can qualify for a tax deduction. Learn about the process of donating a car to charity below.
The most common questions people have when thinking about car donation are: Can I write off my car donation, and how can I donate a car? While donating a car is very easy, writing off your car donation is trickier.
To donate a car and increase your chances of getting the tax break you want, the first step is to select a charity that not only supports a cause you believe in but also accepts car donations. There are many charities that accept vehicle donations.
As long as the organization you select is a certified nonprofit with a 501(c)(3) status, you can claim the donation on your taxes. Search the IRS database to find out if your favorite charity qualifies.
Once you know that your charity qualifies, call to see whether it accepts car donations. Ask if it has any restrictions on the types of vehicles accepted or the condition the vehicle needs to be in. Most charities want cars whether or not they run, simply opting to tow away the vehicle. Some also take RVs, trucks, scooters, motorcycles, and even boats.
To donate the car to a nonprofit, you will need to transfer the title to the organization. Ask the organization what you need to do to transfer the title. Many charities will be able to tell you exactly how to complete the car title for a smooth transfer.
Finally, arrange the vehicle donation pickup date and time, and transfer the title to the charity. At that point, your part in the car donation is done. Once the car is sold, the charity will prepare a receipt that you can use for tax purposes. Be sure to tell your friends and family how convenient it was to donate your vehicle to charity!
If providing job training and employment to disadvantaged people is a cause you care about, consider donating to Goodwill. Your car will be sold to support employment and community-building programs in your area, allowing you to make a difference by donating your car.
Call our car donation program hotline at (866) 233-8586 day or night, to donate your car and support your community.