- Research charities to find an organization that accepts donations of non-running vehicles. Make sure to let the charity know that the car doesn't run prior to arranging a pick-up time. Depending on the organization's needs, it may not have use for a car that doesn't run and is worth very little. In fact, if the car is in extremely poor shape, it may cost the charity more money to tow the car away than it'll earn from the sale.
- Car donations made to either 501(c)3 charitable organizations or religious organizations are eligible for a federal tax deduction on your yearly tax return. Ask the organization you plan on donating your vehicle to whether it is an approved charity, or check the online version of IRS Publication 78. This comprehensive database has updated information on all 501(c)3 organizations in the United States.
- The only mandatory requirement for donating a vehicle is the title. If the vehicle title is missing or otherwise invalid, you must obtain a duplicate from the motor vehicle department in your state prior to making the donation. A duplicate title will cost you between $5 and $75, depending on where you live. Once you are in possession on a valid title, you must sign it over to the charity at the time of donation.
- In order to deduct the donation on your federal tax return, you must have a receipt from the charitable organization to prove that a donation was made. The receipt should include your name, the donation date, the charity's name, a description of the vehicle and an estimated donation value. If the donation value exceeds $500, the organization is required to send you a copy of the sales receipt so you can deduct the entire donation amount. If the donation is valued more than $5,000, you will also need to include a professional appraisal report.
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