Benefits Of Donating Your Car To Charity

Do you have an old car that you never use anymore? What are you going to do with it? Numerous organizations offer to take your old car and use it or the money they get from the car toward charity. If you're considering donating your car, here's everything you need to know. 

Reasons to Donate Your Car

There are a number of great reasons to donate your car to charity. These are just a few of the ways donating your car is a good idea:

  • It's for a worthy cause. 

When you donate your car to charity, that car will be bused to help a family in need, or the money is used to help a family in need. You can sleep better at night knowing that your extra car that wasn't being used is now being used to help support a family without a vehicle. 

  • Get rid of your car

Many times people donate their vehicle to get rid of the car cluttering up their driveway. You don't have to worry about storing the vehicle or the maintenance required to keep it running anymore. Let a charity in need take the car off of your hands. If it's not running, many places that accept \car donations even come pick the car up for you. Just remember that this might reduce the amount that you can claim in donations. 

  • Tax deductions

One of the biggest reasons that people donate their car is to take advantage of the tax deductions. If the car is worth less than $500 or it doesn't have a title, the car is most likely sold for parts and scrap metal. In this case, you can claim either $500 or the fair market value. You can determine the fair market value of your donated car by using Kelly Bluebook.  If the car is worth more than $500, the donor is required to fill out Section A of IRS Form 8283. Cars worth over $5000 require a third-party appraisal to determine the value of the vehicle. Remember that the donor is responsible for determining the value of the vehicle- not the charity. Also, you cannot get a deduction for more than the amount that the charity got for the car. You will need to follow up with the charity to find out how much they got for your vehicle. 

Tips for Donating Your Car to Charity

  • Non-cash donations spark more investigations by the IRS than anything else. Be as accurate as possible to avoid any problems in the future. 
  • Drive the vehicle to the charity yourself if you can to prevent the cost of expensive third-party towing services. 
  • Be sure to verify that the charity you choose has the proper paperwork. Don't hesitate to ask for verification of the charity's tax exempt status. Qualified charities will be labeled as a 501(c)(3) organization unless they are a religious organization. Religious organizations still qualify, but the have a different classification with the IRS. 
  • Always get a receipt!

Contact a company, like Action Donation Services, for more help.



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Making A Difference In The Lives of Others As someone who really loves kids and families, I started thinking carefully about what I needed to do to make my own family happy. I really wanted to move forward and improve my own life, but it really took some time to sort things out. Fortunately, I realized that I could probably make a bigger difference if I started focusing on improving my own life, so I talked with a life improvement coach about what I could do to make things better. It was incredible to feel how much of a burden it lifted off of my shoulders. This website is here to help other people to make a difference in their own lives.

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