Donate a Car

Donating a vehicle is an alternative to selling it, and doing so comes with a moral and monetary incentive. If you're not in a fiscal bind or if your car is too old and beat up to get a good value for, consider donating it to a local or national charity. Salvation Army and the Goodwill are two large national organizations that accept vehicles as donations. If these do not draw your interest though, consider which causes you support, and search for charities that work towards that cause. Once you do choose a charity, maintain a paper trail until the very end so that you may deduct the donation from your taxes.

First verify that vehicles are acceptable donations. They will need to be classified as an IRS-approved, 501(c)(3) organization.

Once confirmed, drive the vehicle to the headquarters, and transfer the vehicle title to the charity. Do not leave that space blank, and report the title transfer to the DMV. To complete the donation, the charity must then give you a bill of sale and a copy of a title change.

If your vehicle is worth more the $500, attach an IRS Form 8283 to your tax filing. If it is worth more than $5,000, the tax filing will require an outside appraisal.

It is important to remember that by no means, may you accept any goods or services in exchange for your donation. In doing so, you null the donation and may not report it on your taxes.