A Complete Guide to Donating Vehicles to Charity
Whether you have an aging car taking up space in your garage, a boat you no longer use or an RV that's gathering dust, numerous charitable organizations across the United States accept vehicle donations to fund their missions. Let's look at some of the top charities that accept vehicle donations, and review what the process looks like.
How to Donate Your Vehicle to Charity
The process of donating a vehicle typically follows these steps:
- Research and select a charity. Consider organizations aligned with causes you support and verify their legitimacy through Charity Navigator, GuideStar or the Better Business Bureau's Wise Giving Alliance.
- Contact the charity directly. Most organizations have dedicated vehicle donation phone lines or online forms. Be prepared to provide basic information about your vehicle including make, model, year, condition and location.
- Schedule a pickup time. Most reputable charities offer free towing services regardless of your vehicle's condition. Some may require the title at pickup while others will accept it by mail afterward.
- Transfer the title properly. It's crucial to properly transfer ownership by signing the title over to the charity. Follow your state's requirements for releasing ownership and removing your name from the vehicle.
- Receive a tax receipt. The charity should provide an initial acknowledgment of your donation followed by IRS Form 1098-C or a similar document detailing the sale proceeds if the vehicle sells for more than $500.
- Claim your tax deduction. Keep all documentation for filing with your tax return if you plan to itemize deductions.
Understanding Tax Deductions for Vehicle Donations
Tax benefits represent a significant incentive for many donors, but the IRS has specific rules governing vehicle donation deductions:
- For vehicles valued at $500 or less, you can generally claim the fair market value of your vehicle.
- For vehicles valued above $500 that the charity sells, your deduction is limited to the actual sale price rather than the fair market value.
- If the charity uses the vehicle for their operations, makes significant improvements before selling it or donates it to a needy individual, you may claim the fair market value regardless of the selling price.
- To claim a deduction exceeding $500, you must attach IRS Form 8283 to your tax return.
- For deductions over $5000, you typically need a qualified written appraisal in addition to Form 8283.
What Condition Should Vehicles Be In?
Most charitable organizations accept vehicles in nearly any condition, including:
- Running vehicles in good condition.
- Non-running vehicles with mechanical issues.
- Damaged vehicles from accidents.
- Older vehicles with high mileage.
- Vehicles with failed emissions tests.
- Vehicles with salvage titles.
Some organizations even accept unusual vehicles like snowmobiles, jet skis, farm equipment, construction equipment and certain aircraft. However, most charities require that you possess a clear title to the vehicle.
6 Charities You Can Donate a Vehicle To
1. Wheels For Wishes
Wheels For Wishes accepts cars, trucks, SUVs, RVs, motorcycles, boats and even certain aircraft. They handle all aspects of the donation process from pickup to paperwork and operate in most states across the country. The organization is known for its exceptional customer service and commitment to transparency, with proceeds helping to grant wishes for children with critical illnesses.
2. Kars4Kids
One of the most recognized vehicle donation programs thanks to their catchy radio jingle, Kars4Kids accepts cars, trucks, vans, SUVs, motorcycles, boats, RVs and certain real estate donations. Their proceeds support educational and youth development programs. The organization provides free towing nationwide and handles all paperwork associated with the donation.
3. Goodwill Vehicle Donations
Many local Goodwill organizations accept vehicle donations to support their employment training and job placement services. Goodwill accepts a wide range of vehicles including cars, trucks, boats, motorcycles and RVs in most conditions. Their program supports community development and job training for people facing barriers to employment.
4. Habitat for Humanity Cars for Homes
This vehicle donation program supports Habitat for Humanity's mission of building affordable housing for families in need. They accept cars, trucks, motorcycles, RVs, boats and even construction equipment. The organization operates in all 50 states and provides free towing services.
5. The Salvation Army Vehicle Donation Program
The Salvation Army accepts cars, trucks, boats, motorcycles and other vehicles in any condition. Proceeds from vehicle donations support their numerous community programs including homeless shelters, disaster relief, rehabilitation centers and youth camps. They offer free pickup service and provide all necessary tax documentation.
6. American Cancer Society Cars for a Cure
The American Cancer Society's Cars for a Cure accepts vehicles to fund cancer research, education and patient support services. They take cars, trucks, SUVs, vans, motorcycles, boats, RVs and other vehicles regardless of condition. The American Cancer Society provides free towing and handles all donation paperwork.