Should You Donate Your Car to Charity?

You may have simply had it with your old car and the repairs are costing more than you’d like. (Hopefully you’ve checked the RepairPal Price Estimator). If the cost of repairs are more than the car is worth, you may want to consider donating your car to charity. With the 2022 tax season rapidly approaching, you may need a tax write-off for 2021.

Things to Consider Before Donating Your Car

Here are some things to keep in mind before you donate your car to charity:

1. Is it a charity? Make sure it’s a group you care about - many organizations will take car ‘donations’, but is it truly a charity? Is it a group that simply resells to a 3rd party? Make sure the folks you want to help really will benefit. Car Donation Wizard works with respected charities to give the highest return of any vehicle donation program. Your car donation can help change lives in numerous ways including:

• Building homes through Habitat for Humanity

• Providing services for cancer patients through the American Cancer Society

• Creating a world of inclusion with Special Olympics athletes

• Fighting poverty with CARE

• Supporting Your Local NPR Station through the Car Talk Vehicle Donation Program

When you donate a car, you’ll be doing something great for the environment while helping people and communities in need. It’s a win-win situation!

2. Is it tax-deductible? You should check to ensure the charity is a 501(c)(3) and verify if the charity is eligible to receive donations by visiting the IRS website. If the donation value is more than $500, you’ll need to fill out Form 8283 with your IRS tax return.

And don’t forget, you’ll need to transfer the title of the car to the charity or agent (you’ll want to take pictures and keep a written record of this). Voila – you’re done!