Much like donating household goods, donating a truck or car to charity is a way to support a charity when you do not have money to donate. While charitable organizations can get the most benefit from vehicles that are in good, working condition, some charities do accept vehicles that do not run at all. When you make a charitable donation of a vehicle, you can claim that donation on your taxes, just like when you donate household goods. Local charities and national charities accept vehicle donations.
Instructions
1. Enter your vehicle make, model and year on the Kelley Blue Book website (see Resources) or a similar site to get the fair market value. Be sure to select any features or accessories that the vehicle has. If the value is over $5,000, you need to get a written appraisal to claim the value on your taxes. The Internal Revenue Service only allows you to claim the full fair market value if the charity has plans to actually use the vehicle for at least one year. If the charity sells the vehicle, you can only claim the selling price of the vehicle instead of the fair market value.
2. Look through the charities on the Charity Navigator website (see Resources) to identify an organization for your donation. Some national charities that accept vehicle donations include Goodwill and the Salvation Army.
3. Make contact with your selected charity to confirm that vehicle donations are currently accepted and to make arrangements for the donation. Sometimes you can have the vehicle picked up, but sometimes you need to actually deliver the vehicle to the charity.
4. Give your signed vehicle title to the charity when you donate the vehicle. If the vehicle is being picked up, you just give the title to the driver. In return, you get your donation receipt. If you have donated to a charity that auctions off vehicles, you will get an updated receipt by mail once the vehicle has been sold.
Tags: fair market, fair market value, market value, vehicle donations, accept vehicle