Donating a vehicle to charity is a powerful way to make a meaningful contribution to a cause you care about without straining your finances. It’s one of the simplest yet most impactful acts of kindness.

At some point, most people find themselves with a vehicle they no longer need. Whether it’s too small, too big, too old, or simply outdated, figuring out how to part with it can become a tedious task. By donating your vehicle to charity, you’re giving it a new purpose and helping a nonprofit organization in the process. This guide will walk you through everything you need to know to make the donation process easy and rewarding.


Couple donating vehicle

Best Charities for Car Donation

The best charities to donate a vehicle to are nonprofit organizations that meet IRS qualifications for vehicle donations. According to IRS Publication 4303, these typically include groups classified under section 501(c)(3), such as religious, educational, and charitable organizations. Donating to a qualified organization ensures your vehicle donation is eligible for a tax deduction.

To verify an organization’s qualifications, you can:

  • Use the IRS EO Select Check tool on their website under "Charities & Nonprofits."
  • Call the Tax Exempt and Government Entities division of IRS customer service, providing the charity’s official name and address.

At DonateACar.com, we make this step effortless. All charities in our database are pre-vetted and guaranteed to meet IRS requirements for tax-deductible vehicle donations. We’ve done the hard work so you can easily choose a trusted nonprofit that aligns with your values.

Qualifying for a Tax Deduction

Once you’ve ensured the charity is IRS-qualified, how can you confirm your donation is eligible for tax deduction? IRS Publication 4303 outlines the requirements:

  • You can only claim a deduction if you itemize deductions on your Schedule A of IRS Form 1040.

How Much Can I Deduct for My Car Donation?

The deduction rules depend on the sale value of your vehicle:

  1. If your vehicle sells for less than $500:
    • You can deduct the fair market value (FMV) of your car, up to $500.
  2. If your vehicle sells for more than $500:
    • You can deduct the exact sale price as reported on the IRS Tax Form 1098-C, which you will receive from DonateACar.com within 30 days of the sale.
  3. If your vehicle sells for $5,000 or more:
    • You will need to complete Section B of IRS Form 8283, which must include the signature of an authorized charity official.

Here is a chart to visually see what is required for your records and for tax filing.

Requirement Less Than $250
Deduction
$250 to $500
Deduction
Higher than $500
to $5000 deduction
Higher than $5000
deduction
For Record keeping
Name & Address of Charity X X X X
Donation Date X X X X
Where Vehicle was Donated X X X X
Vehicle Description X X X X
Written Acknowledgment X X X
For Tax Filing
Written Acknowledgment X X
Section A – Form 8238 X
Section B – Form 8238 X

For more information on the amount you can claim on your tax return and forms that must be filled out, see the IRS Publication 4303.

Your tax deduction cannot exceed the gross proceeds from the vehicle's sale. After the sale, you’ll receive a receipt or thank you letter acknowledging your donation.

What is the Fair Market Value of My Vehicle?

Fair market value (FMV) is the amount your car would sell for on the open market between a knowledgeable buyer and seller. FMV often differs from the "blue book" value because factors like excessive wear, mechanical issues, or upgrades can impact the price.

To determine the FMV of your vehicle:

  • Use online pricing tools like Kelley Blue Book online or Edmunds.
  • Input details such as the vehicle’s year, model, mileage, condition, and features.
  • Assess the car’s mechanical history and appearance honestly.

FMV represents the highest value you can deduct if your vehicle sells for less than $500 or meets specific criteria under IRS rules.

IRS Car Donation Requirements for Filing and Recordkeeping

To claim your tax deduction, the IRS requires the following documentation based on the value of your vehicle:

  1. For deductions of $500 or less:
    • Charity Name
    • Vehicle details
    • Information about any goods or services received in return for the donation
  2. For deductions of more than $500 but less than $5,000:
    • All the information above
    • A completed IRS Form 1098-C Copy B or a legal substitute
    • IRS Form 8453 if filing online
  3. For deductions of more than $5,000:
    • IRS Form 8283, signed by an authorized charity official
    • IRS Form 1098-C or a substitute receipt

Attach the required documentation to your federal income tax return. For additional guidance on state-specific tax benefits, check with your state’s tax department.

How Do I Donate a Car to Charity?

Donating a car through DonateACar.com is simple and hassle-free. Here’s how it works:

  1. Choose a Charity:
    • Browse our extensive list of vetted nonprofits.
    • Search by category (e.g., animals, health, children, environment) or by keywords like “cancer” or “veterans.”
    • You can also explore charities in your area by selecting a state from the website footer.
  2. Fill Out the Online Form or Call Us:
    • Share information about yourself and the vehicle you want to donate.
    • We’ll handle the necessary paperwork for you. If you need assistance with your vehicle’s title, our title experts are here to help.
  3. Schedule a Free Pickup:
    • A professional towing company will contact you within 24 to 48 hours to arrange vehicle pickup.
    • You can choose a location and time that’s most convenient for you.
  4. Receive a Receipt:
    • Once your vehicle is sold, you’ll receive a receipt by mail for your tax records.

By donating your vehicle, you’re not only supporting a noble cause but also benefiting from a streamlined, tax-efficient process. Turn your unused car into a meaningful contribution today!