Finance

Charity car donations are a terrific way to make a substantial contribution to those in need. Such donations are tax deductible, with the amount of the write-off based on the vehicles make, model, year, mileage, and condition. Vehicles of all stripes are usually accepted by most charities, including trucks, vans, fleet vehicles, trailers, boats, motorcycles, and RVs, although its probably prudent to call ahead beforehand and make sure the charity youve chosen deals in vehicles at all.

The Ins and Outs of Charity Car Donations
Making charity car donations usually requires that the donor be able to show proof of title to the vehicle in question. Even so, some charities will still negotiate with you even if you lack such documentation. Cars that dont run and havent in years are also often accepted, except those that are too old and/or damaged to offset the cost of towing.

The Internal Revenue Services homepage has an entire section devoted to calculating the value of your donated property. Charity car donations that are worth more than $5000 are customarily subject to official appraisals, although this is usually considered a formality. The IRS does require, however, that the charity to which youre donating the car be a registered 501(c)3 organization.

Its important to keep your receipt from the donation for your tax records as proof of your tax deductible donation. Additional paperwork may be required depending on the value of the vehicle. If the vehicle being donated is worth more than $500, you need to fill out IRS Form 8283, for example. If its value exceeds $5000, you need to also submit an independent appraisal of the vehicle (as cited above) to the IRS, although most charities will be happy to provide this service free of charge.