Why Donate Your Car

For an older-model working car that is no longer in use, car donation to charity is a great way to give, while also ridding the owner of an unwanted car. For his generosity, the owner will also receive a tax deduction.

Where to Donate

Some car donation charities aim to fix older cars to be donated to families in need. However, many charities that accept donations, but are not targeted toward cars, sell the vehicles at auction and keep the proceeds.

Benefits

The largest benefit of car donation for the owner is the tax deduction. This can be calculated in two ways. The owner will receive notification from the charity of the value at auction of the car, and can deduct this amount. The owner may also deduct the fair market value, as listed in the Kelley Blue Book.

Considerations

Give the charity the largest amount by driving the car directly to the donation center. This cuts down on towing costs, which are taken out of the value of the car, and lessen the donation.

Further Information

For charity-specific information, check each charity's donation information carefully. Select a charity that donates the highest percentage of each donation. Also, be sure to check the IRS car donation guidelines for more information on tax deductions.

Source:

Car Donation Facts

Car Donation Tax Savings

Resource:

IRS Car Donation Guide