Car Donation

Car donation or charity car donation or used car donation or charitable car donation or donating a car to charity is the practice of giving away no-longer-wanted cars, trucks, boats, motorcycles and other vehicles to charity organizations. In the United States, charitable donations provide a tax benefit; as such, this type of giving has become very popular. For values less than $500, the value of the tax deduction comes from the donor's own estimate of the car's value, even if the charity receives less money from actually selling the car.

Deductions for vehicle or car donations over this amount are limited to the sale amount of the vehicle (usually at auction). Some critics have claimed that this is essentially a tax shelter. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread in the U.S.; in 2000, 733,000 taxpayers reduced their taxes by $654 million.

Update: 2007 -- You can claim a minimum $500 deduction on your itemized federal tax return when you donate your car or other vehicle, boat, motorcycle or truck. If your car sells for more than $500, the sale price will be the amount you can claim as a deduction.  Most cars in the United States are accepted for donation, old or new, running or not running. To be eligible for a car donation, your car must have a clear title, not be stripped of any parts, have 4 inflated tires and be in a place where a tow truck can easily get to it to tow it away. Some of the national charities your donation can help are listed below or see National List: List of Car Donation Charities

Also see: Deducting Vehicle or Car Donations If You Donated a Car to Charity IRS TAX TIP 2007-58 on this website: Car Donation Tax Information  and  Car Donation Tax Deduction

Many charities run car donation programs. Some have their own car lots which sell the donated cars but many have their donations processed through auto auction companies. Many processing companies also collect and sell donated cars and distribute the money to a charity the donor indicates. The processing company typically takes a percentage of the sale value of the car, but these programs allow charities without their own facilities or staff dedicated to automotive donation fundraising to benefit from vehicle donation programs.

Although advertised as an easy way to dispose of an old or used car, donors need to fulfill certain post-donation requirements to qualify for the tax deduction such as obtaining a written acknowledgment of the car's subsequent sale by the charity, and itemizing instead of taking the standard deduction. Ideally, donors should also investigate how much money from the sale of the car goes to the auction processor and how much actually benefits the charity's programs, as opposed to its administrative overhead.

Car Donations are popular in  Canada and the US in many states including: car donations CA (California), Massachusetts,  Minnesota, NY (New York), New Jersey, Michigan, Illinois, Connecticut, Indiana, Maryland, Georgia, Ohio, Virginia, Hawaii, Florida, Arizona, Oregon and Texas to name a few.

Car donations in cities include:  San Francisco, Houston, Seattle, Boston, Chicago, the Bay area, Los Angeles, Sacramento, Minneapolis, San Jose,  San Diego, Dallas and more.

Major charity car donation programs  include:  Salvation Army, Purple Heart Car Donation Program, Jewish Car Donation Program,  Kidney Foundation Car Donation Program, Target Car Donation Program, Goodwill Car Donation Program, Make A Wish Foundation Car Donation program, American Red Cross Car Donation Program.

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