So, you want to donate your car to charity.  There are several, major charities that to take donations of used cars, boats, motorcycles and other vehicles.  However, before you do so, there are things for which you need to watch out.

Middlemen

A whole industry has sprung up of companies that will take your car from you, sell it at auction, take a cut of the proceeds, and donate the remainder to charity.  While there's nothing illegal or immoral about doing this -- in fact some charities like not having to do the work -- there are reasons to avoid this if possible. 

First, it reduces the amount of money that the charity gets.  If donating to a charity is your goal, note that you should find a charity that does the work themselves, and donate your vehicle to them, instead.  In this way, more of the value of your car actually gets to the charity.  Second, you are only able to deduct that which actually goes to the charity.  If the middleman takes 10% of the value, that reduces the amount you can deduct by 10%. 

So less money gets to the charity, and you can deduct less.  This is a situation to avoid if you can.

Proper valuation

Donations of used cars are taken as a tax deduction. In the past, donors were allowed to practically pick what they think is the highest legitimate value they could, and claim that as a deduction.  Congress has gotten wise to this, and they have been considering tougher regulation around donations.  Until they provide more clear guidelines, they suggest using the Kelley Blue Book or the N.A.D.A. Appraisal Guide in order to properly valuate your car.

When determining a value for your car, be sure to factor in condition.  Too many people were claiming high values for cars that didn't run, or had considerable damage. The charity should give you a receipt that includes some description of your donated car, make sure their description matches your value.

Finding a charity to donate your car to

The easiest way to find a charity that takes donations of cars is to call the United Way, the Salvation Army and the Boys Clubs and Girls Clubs, or other well-known, national charities.   They will know which local groups accept them, and what the best way to go about handling the donation is.  You can also search online, as charities that accept vehicles like to advertise it.



Donating your car to a charity can be a rewarding thing to do.  It's good for the charity, good for you, and good for your taxes.  If you keep in mind the above, you should do just fine.

You can read other tax tips for donating your car to charities on my other hubs.