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2020 Guide to Donating Your Vehicle: Donate a Vehicle to Make a Difference!
Donating to a charity of your choice is a decision that you’ll never regret. When you make a charitable contribution, you give yourself a chance to make an impact in your community while you conveniently dispose of items that you no longer want or need. These items could be your old furniture, clothes, books, or a car.
Although any type of donation can go a long way in supporting a charitable cause, more value can be squeezed out from a vehicle donation and more assistance can be provided to those who need it the most. If you’ve decided to make a car donation, give yourself a pat on the back for setting aside a good amount of cash to a high-performing charity that you respect.
What You Need to Know About Car Donations and Tax Deductions
Aside from feeling good about yourself for doing something that can adequately benefit the needy, you’ll also receive great rewards for your charitable contribution. To receive these rewards, make sure that you’re donating to an IRS-certified 501(c)3 nonprofit. This way, your donation will automatically entitle you to claim a tax deduction in the next tax season when you itemize your deductions on your federal tax return.
Your charitable deduction will be based on the year when you submitted your online donation form to your chosen charity even if the charity picks up and sells your vehicle after the start of the next year.
Before the new tax law went into effect in 2005, a person who made a charitable contribution to a qualified charity or nonprofit organization was allowed to claim a tax deduction based on the market value of their vehicle regardless of the amount that it was sold for.
Under the new tax law, if your donated car was sold for less than $500, this will allow you to claim your car’s fair market value up to $500 or the exact amount it was sold for, whichever is higher. To calculate your vehicle’s fair market value, you’ll need to use a reliable used-car price guide and check the prices online for vehicles that are similar to your car’s year, make, model, as well as condition.
However, if your vehicle was sold for more than $500, you are allowed to claim only its full selling price regardless of its fair market value.Photo by Nataliya Vaitkevich under Pexels License
How You Can Claim Your Tax Deduction
To claim a tax deduction for your vehicle donation, you need documentation. The IRS will require you to present a written acknowledgment from the charity where you made your vehicle donation. This document must include your name, a brief description of your car, and a few details about your vehicle such as its VIN, the date you donated it, its selling price, and the charity’s statement confirming that you didn’t receive goods or services in return for your donation.
Furthermore, the IRS also requires you to fill out the required tax forms based on the value of your donated vehicle.
To claim a tax deduction from $500 and below, you’ll need to keep the charity’s written acknowledgment and your tax paperwork.
To claim a tax deduction greater than $500 up to $5,000, you’ll need to attach the charity’s written acknowledgment or a completed Tax Form 1098-C form to your tax return. In case you’re wondering what the 1098-C form is, it’s a form for contributions of motor vehicles, boats, and airplanes. Aside from this, you’ll also be required to fill out Section A of Tax Form 8283 for general property or a noncash charitable contribution.
To claim a deduction that’s greater than $5,000, you’ll need to attach a 1098-C form or an 8283 form as well as your vehicle’s written appraisal.
For more information about tax deductions for charitable contributions, it’s best to consult a tax professional or the IRS.
Help Your Community by Donating a Vehicle to Goodwill Car Donations
Do you want to take an active role in supporting your local community? If you have an extra vehicle that you barely use, you might want to donate it to us at Goodwill Car Donations so that the disadvantaged people in your area can have a chance to overcome barriers to economic stability and a higher quality of life. These are those individuals who are hampered by disabilities, lack of education, and other personal circumstances that prevent them from securing decent and stable jobs and sustainable livelihoods. With assistance, they can harness their full potential and contribute to the growth and development of your community.
We will auction off your donation and turn over the proceeds to the Goodwill organizations serving your area. These IRS-approved 501(c)3 nonprofits cater to disadvantaged individuals and use the funding coming from charitable contributions to help finance the services they provide to their beneficiaries. These services include job and skills training, career opportunities, vocational and educational services, internship programs, financial support, disability benefits, and other critical community-building support services.
Since we make it a point to render the highest quality of service to our donors, you can expect to experience the smoothest and seamless donation process with us from start to finish.
We’ll pick up and tow your vehicle at no cost to you. Your donation will also entitle you to receive a hefty tax write-off in the next tax season.Photo by Samantha Garrote under Pexels License
How to Donate a Vehicle to Goodwill Car Donations
Our donation process is anything but complicated. We’ll handle all the heavy lifting on your behalf. To give you an idea of what to expect when you make a vehicle donation to us, here’s a quick overview of our donation process:
- You get in touch with us.
To kickstart your donation process, call us at our toll-free hotline at 866-233-8586. If you prefer to make your donation online, simply fill out our online donation form. We’ll call you back as soon as we receive your submitted form so that we can ask you for your preferred pickup schedule.
- We send out a tow truck to pick up your vehicle for free.
On the day designated with you, we’ll have your vehicle picked up from the location of your choice. We won’t require you to be present during the time of pickup. Just tell us where in your vehicle we can find your car keys and title. You won’t have to spend a single dime on towing because it’s on us.
- We send you your tax-deductible receipt.
Once you hand over your vehicle to us, we’ll work with our nationwide network of vehicle liquidation vendors so that we can get your car sold for the highest price possible.
We’ll then send you your 100% tax-deductible sales receipt via mail or email within 30 days after your vehicle gets auctioned off. You need this document to claim your tax deduction when you file your itemized federal income tax return in the next tax season.
We accept almost all types of vehicles, including those that need a lot of work.
If you’re interested to learn more about our donation program, head over to our FAQs page. For your questions or concerns, tell us about them here. We will respond to you within 24 hours. You may also give us a call at 866-233-8586. We’d be happy to hear from you!
Donate a Vehicle in 2020!
Now is the best time to help the disadvantaged people in your community. Donate any type of vehicle to Goodwill Car Donations today! Call us at 866-233-8586 or fill out our online donation form now!