home    submit article    browse all    contact us

How to Donate:

Car & Other Vehicles
>> car, boat, etc.

Cash & Financial Assets
>> cash, real estate, stocks and bonds, etc.

Clothing & Personal Items
>> clothing, jewelry, gems, paintings, hobby collections, etc.

>> computers, cell phones, etc.

Household Items
>> furniture, appliances, etc.

>> sperm, blood, etc.

Browse All Categories
>> sitemap

Tax Information

IRS Publication 561
>> This IRS guide helps donors determine the value of property.

IRS Publication 526
>> This IRS guide explains how to claim a deduction for your charitable donations.

How To Donate A Car To Charity

By Bill Young



Donating a car to charity is a valuable service to helping you get rid of your used car for a worthy cause.  In the process you will receive a nice tax deduction.  It will save you time and issues over trying to sell your car.  Donating a car to a charity lets you deduct its fair market value from your taxable income. (Please see below for new tax law on deductions)

Please note that your car does not even need to be running for you to donate it.  Most donation charities will tow your car free of charge!



  1. Find a charity that accepts cars without charging a removal fee.  Most reputable charities do not charge any type of fees. 
  2. Make sure the charity is a registered 501(c)(3) charity or qualified religious organization that can lawfully accept your donation and from which you can get a tax deduction.
  3. Determine the fair market value of your car.  This can be done by using the Kelley Blue Book or IRS Publication 526 ("Charitable Deductions") and 561 ("Determining the Value of Donated Property").  See below under resources for pdf copies of the IRS Publications.
  4. Get a tax receipt with the charity's name and federal tax ID number, donor's name, date of donation, year of car, car make and model of the donated car.
  5. Notify the DMV and your insurance company that you no longer own the vehicle.  Follow state regulations on what to do with the title and plates.  Keep the receipt and completed IRS Form 8283 for tax time.



  1. Ensure no removal fees
  2. Find registered 501(c)(3) charity or qualified religious organization
  3. Determine fair market value of car
  4. Get tax receipt from charity
  5. Contact DMV / Insurance and get completed IRS Form 8283


Car donation tax laws (starting 2005)

To help reduce overvalued tax deductions on auto donations, the IRS has issued new guidelines. In addition, legislation signed into law by President Bush on October 22, 2004 makes substantial changes to used-car charitable deductions starting in 2005. 

Beginning January 1, 2005, when a taxpayer donates a vehicle for which the claimed value is $500 or more, the deduction he can claim will depend on how the charity plans to use the vehicle.  If the auto is sold by the nonprofit organization, then the taxpayer will be able to deduct only the amount of gross proceeds the organization received from the sale. And the donor will have to depend on the charity to let him know the donation amount by the individual tax-filing deadline. 

If, however, the group plans to use the car for what the law deems as "significant" tax-approved charitable work, the donor would be able to claim the fair market value of the donated vehicle.  The new law also provides penalties for fraudulent acknowledgments provided to taxpayers.





  © Copyright 2007 DonateGuide.com. All Rights Reserved.