What You Should Know About Donating a Car to Charity


Your car may have become old to you or maybe you have a good heart and you are willing to give out to the needy people in the society. It is a donation but of course there is a fee that you will receive after giving it out to charity. It is probable that when you give out your car then the charity which received it will take advantage of the gift and use it to transport stuff from one place to another.

Another choice they may have is to sell the car and then use the money for a better cause. Despite your kindness, the IRS will at times tend to tail any money transaction happening in the country. This is the reason why some tips are important to know when you want to donate your car to charity. Here are some of the tips.

Be Clever and Maximize the Tax Deductions That You Receive

Even if you are donating, make sure the tax deductions are maximized. You can do this by following up the charity organizations which you give your car. If you give out your car to people who just sell then the tax deductions will just be based on the market value of the car. If you do give to a charity organization which uses it to transport or do its operations then the proceeds the charity receives will be maximized. This can also be the case if the car is given to a person in need of it more.

Another trick to make sure the charity gains maximum proceeds from whatever use they will have for the car is to get rid of any third party. Inquire from the charity organization if they are involved in any third parties and if they are not then don’t involve yourself. Just drive your car to the destination and any amount gained from the use of the car will be entirely the property of the charity.

Familiarize Yourself with the IRS Requirements

Knowing the requirements of IRS is very important to avoid government squabbles. When you donate a car to charity, they will have to provide you as the donor with information on how they plan on using it and when they decide to sell the car then they must provide you with information which includes the price at which the car was sold. You as a donor should also read the IRS policy on the value of the car.


You probably never thought donating a car could be as simple as eating ice cream did you? There are government requirements that should be fulfilled otherwise you will receive penalties for not coming out clean about these details. When donating a car to charity you should make sure you do a follow up.