4 Benefits of Donating Your Vehicle to Charity
Donating your vehicle to charity allows you to find value in a car, truck, boat, motorhome or other vehicle that is no longer useful to you. There are many ways a donated vehicle can benefit a charitable cause you care about, and there are many ways donating a vehicle can benefit you as well. Learning more about the main benefits of a vehicle donation may prompt you to donate a vehicle that is just taking up space in your driveway or a storage facility.
First Benefit: You Get a Tax Write-Off
The first and foremost benefit of donating your vehicle to charity is that you can take a car donations tax deduction up to a certain dollar amount at tax time. To receive the full value of this, ensure the following:
- Your vehicle donation goes to a registered 501c3 not-for-profit corporation recognized by the IRS (Internal Revenue Service).
- You personally determine the vehicle’s value at the time of donation according to IRS guidelines.
- You itemize your deductions properly at tax time.
- You get the right paperwork to include with your tax filing.
Second Benefit: The Charity Receives Value From Your Vehicle
There are numerous ways a charity can use a donated a vehicle. The following are some of the most common ways the charity may use your vehicle donation.
- The vehicle may be resold as-is or for the value of the parts, with the charity using the proceeds to further its charitable works.
- The vehicle may be resold at a low price or gifted to a beneficiary of the charity’s services.
- The vehicle may be used directly in the charity’s work to transport staff, beneficiaries or volunteers.
Third Benefit: The Vehicle Itself Benefits Others
Regardless of how the charity uses your vehicle donation, you can know that the vehicle you no longer need is now useful to people who find themselves in challenging circumstances. Whether the vehicle is gifted to a single mother who needs to take her kids to school or resold to others with the charity reinvesting the proceeds into their cause, your vehicle has become a powerful agent for good in the community.
Fourth Benefit: You Can Feel Good About Making a Difference
The fourth major benefit of donating your vehicle to charity is you can be assured that your choice to donate your vehicle is making life easier for someone else and for a cause you care about. There is no substitute for offering kindness and hope in a world that sometimes feels callous and cold. Your donation reminds you that we all need help sometimes, and we can all help others too.
How to Donate Your Vehicle to Charity
If you are considering donating your vehicle to charity but are not sure how to go about the process, the following guide may be useful to you. Depending on the charity you choose, you may find this process varies a little (for instance, if the charity you choose is not local), but the overall process will remain the same.
- Investigate charities and choose an IRS-recognized not-for-profit charity. Make sure the charity you select can accept a vehicle donation because not all charities are able to do so.
- Prepare your vehicle. Receive a value assessment, obtain the title and registration paperwork, fill out any required paperwork the charity needs and take photos if necessary. Remove any personal valuables from the vehicle, and clean and prepare it for donation.
- Ship your vehicle. Once the donation is processed on the charity side, ship your vehicle (or transport it locally).
- Take your tax write–off during your annual filing. Finally, take a tax write-off for the value of your donated vehicle at tax time. Consult a tax professional if you need help with this step.
About the Author: Contributing writer Karen Schiff has donated two cars to charity in the past and is currently in the process of donating her third.
Category: Charity
