How To Donate Cars For Charity

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Car charity is gaining widespread popularity in the United States. It is because of the associated benefits that car donation can bring to people. When you donate an old vehicle, you no longer need to spend money on its care and maintenance. Also, by donating your vehicle, you can do away with the hassles involved in selling your vehicle to an unknown person. Though a car donation process is simple and easy, the tips given below can make the whole process smoother.

Useful Tips on How to Donate Cars for Charity

• First and foremost, acquaint yourself with the IRS (Internal Revenue Service) laws for car donation. If you are donating your vehicle for the first time then you should not that you can claim tax deduction as per IRS rules. These rules were changed in 2004 and since then the amount of tax deduction has been limited to the amount the charity ends up getting by selling your car.

• Secondly, make sure that the charity receiver is qualified. IRS has specified charities that are qualified to receive car donation for tax deduction purposes. You can check the norms on the website of the IRS. In case of any assistance, you can also contact your state charity officials. Most tax deductible charitable organizations are granted with “Letter of Determination” that verifies their status.

• Make sure you get a well documented acknowledgement receipt when the drivers from the charity come and tow away your car. Note that this acknowledgement receipt is for your records only and does not serve the documentation requirements of tax deduction.

• If you do not keep record of the documents clearly stating the value your car has been sold for then the IRS officials can pose a problem. They look into the very details of non-cash donations.

• The charitable organization you are donating your car to should provide you with a receipt that indicated the selling price of your vehicle within 30 days form the receipt of the vehicle. This receipt is of a lot of importance and one of the primary documents necessary for claiming tax deduction.

• If your used car sells for more than $500 then a new IRS form needs to be filled and attached with the annual return.

• If your car sells for $5,000 or more then an independent appraisal will be held. Make sure that you enter the relevant details in the appropriate part of the IRS form.

• Before you car is towed away by the charitable organization, take its pictures from the inside as well as outside. Also, keep your car in a good condition so that it can be towed away comfortably. If all the four tires of your vehicle are not inflated, your donation of car will not be accepte.

Donation of car is becoming popular day by day. For charitable car donation easily and quickly, you can contact a vehicle donation center which works on behalf of its supported charities. For more information visit


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