Determine your charity tax deduction

In order to claim your car donation you must itemize deductions on your personal tax return. For taxpayers, the decision to itemize on Schedule A of Form 1040 is determined by whether their total itemized deductions are greater than the standard deduction. Of course, many donors are not interested in the tax deduction and just want to donate a vehicle to charity so that it can be used for a good purpose. However, if you are interested in a tax deduction when you donate a car, you should understand that in order to obtain it, you must itemize your deductions and not just go with the standard deduction.

Calculate the value of the vehicle you wish to donate to charity

There are many online resources for determining the fair market value of your car donation. Checking the “blue book value” will give you guidance on the general value of your donated vehicle, but you should also take into account the overall condition of your car donation when donating to charity. 'Your car donation is tax deductible and will fall into one of these categories:

1. For low value vehicle donations you can claim the fair market value up to $500.00 without any additional paperwork besides the receipt we will provide at the time of the pickup.
2. If you donate a car that is worth more then $500.00, your deduction will be limited to the actual sale price of your car donation. 
3. For cars that are in safe and good running order that we can specifically use for our charitable projects or if we can significantly improve your vehicle before it is sold then you can generally claim your car's fair market value. Please Contact Us if you want to verify if this would be the case for your car donation.

Locate the title for your car donation

Usually you will need to provide a title for your vehicle if you wish to donate your car to charity. If you have lost your title, visit our FAQ's Section for information about obtaining a duplicate title. Sometimes you can donate your car without having the title, especially if your donated car will be sold for parts or salvaged. Check with the motor vehicle department in your state to determine if you must have the title for your vehicle before donating.