to Donate Your Car to Charity and Get Tax Deduction
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.
1. 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.
2. 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
3. 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
4. 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.