Fund Raising Ideas for Groups in the New Millennium!
How to Donate Your Car to Charity and Get Tax
Deduction
by John Lee
Donating your used car to charity is a win-win
situation; the charity gets your gift and you get tax deduction. Below are some
simple steps to make a car donation.
- Understand the rules. A good place to read
the government rule on car donation is IRS Publication 4303, A Donor's Guide to
Car Donations (available on the IRS's website at www.irs.gov). This guide
outlines some important rules regarding car donation. For example, one
important rule states that car donation must be made to qualified organizations
in order to be tax deductible.
- Determine the value of your used car.
Although the blue book might help you determine the value of your car, you
should read IRS Publication 561, Determining the Value of Donated Property
(available on the IRS's website), to see what your car really
worth.
- Find a charity to donate your vehicle. If you
are associated with any charity or non-profit organizations, that organization
might be your choice for donating your car. Otherwise, check the Yellow Book or
search on the Internet to find an organization to which you feel like donating
your car. After you have identified a candidate, you should review IRS
Publication 78, which is a list of organizations eligible to receive
tax-deductible charitable contributions. This document is also available on the
IRS's website and it's searchable. Make sure the candidate charity is eligible.
Otherwise, you might not get your tax deduction!
- Make your donation. After you have made the
donation, make sure to ask for a written acknowledgement from the charity. You
will need to attach this acknowledgement to your tax return in order to get
your tax deduction.

Further Reading About Car Charity...
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