Cars For A Cure® Charity Vehicle Donation Program

Tips for Choosing the Best Car Donation Program

There are hundreds of car donation programs on the internet making heartfelt appeals for vehicles, but only a small number of these programs actually make a difference to the charity. Car Donation Wizard wants you to know that we know that you have choices and we are happy to offer complete clarity on where your car donation is going, who it's helping, and how it's going to get there. Call us anytime at (877) 957-2277 for more information or to donate a car to one of our amazing nonprofit partners today.

Tips To Maximize Your Car Donation Tax Deduction

1. Make sure the charity is an organization that you know and trust. There are thousands of organizations that accept car donations. Before you choose to donate, remember that all charities are not created equal. Look for an organization whose work you recognize as benefiting the community or the world. Be concerned about “charities” that have cute-sounding names or might sound similar to a charity you know (for example, Habitat for Humans instead of Habitat for Humanity).
2. Ask how much the charity will receive. The charity has a responsibility to best manage your vehicle donation. Ask how much of the gross proceeds will go back to the charity after you donate a car to them. If the organization will only list the percentage of net proceeds, then your car donation could be largely wasted. Several published reports have clearly established that most car donation programs return between 15 and 35% of the gross back to the charity, but they report it as 50 to 70% of the net. This could be the difference between the charity of your choice receiving $1,000 or $150 for your car donation.*
3. Once you've decided to donate a car to charity, sign the title directly over to the charity or their agent. All states have very clear regulations about transfer of ownership for vehicles. DO NOT, UNDER ANY CIRCUMSTANCES, LEAVE THE ‘BUYER’ SECTION OF THE TITLE BLANK. By leaving the title blank, you allow anyone to transfer the title directly from you to the next buyer. There are two consequences of this oversight.
   • The donor can remain liable for the vehicle. This means liable to the buyer and possibly liable for the actions of the buyer if the vehicle is never correctly transferred.
   • The charity might not receive any credit for the vehicle donation. By signing directly to the charity or their legal contractual agent, you make it much more likely that the vehicle will actually be used for the charitable purpose that you designate.
4. Ask how your car donation will be handled. You'll want to know that the vehicle will be picked up and transported by properly licensed and insured towing companies and that the legal transfer of the donated vehicle will be handled by a licensed dealer contracted by the charity.
5. Ask how and where the money will be spent. This question should be easily answered. You should search for the charity or agency that makes the best use of the funds from your auto donation. BEWARE of charity car donation programs that promise to send proceeds to any organization without having a direct relationship. All charities are not created equal, and all car donation programs are not run with the same attention to donor wishes.                

_{*Car Donation Wizard returns between 75% and 80% of the GROSS from each auto donation back to the charity.}

Tax Benefits of Car Donation

When you donate through our program you are eligible for a tax deduction. However, to claim your deduction you need to itemize on your income tax return.

In 2005, the IRS changed the laws related to tax deductibility of car donations because of exaggerated deductions based on inflated book values. Under the new rules, the deductible amount of your vehicle donation is directly related to the selling price of your vehicle.

Donate a car and if it sells for less than $500 you can take a tax deduction equal to the 'fair market value' of your donation up to $500. Fair Market Value is explained as the "Blue Book" or "Guide Book" value of your vehicle. The charity is legally prohibited from providing fair market value to the donor but you can access that information easily. See our car donation to charity help links below for Kelley Blue Book, NADA Guides or Edmunds.

The receiving charity is required by IRS to send the donor a receipt or "contemporaneous written acknowledgement" within 30 days of the vehicle sale. This receipt must include the following:

    The gross selling price of the vehicle (if sold for greater than $500)
    Year, Make, Model and VIN Information
    A statement that the vehicle was sold at arm's length between two unrelated     parties
    And a statement that no goods or services were received in return for your     contribution.*

_{*Keep in mind, companies promising goods or services in return for your car donation are legally cutting into the amount that you can claim for a tax deduction.}

Tips To Maximize Your Car Donation Tax Deduction

Car Donation Wizard wants donors to know that donating a car to charity not only helps the organization fund worthwhile research and activities, but you also may be eligible to claim a tax deduction for your charitable contribution. Here are some car donation tax tips:

1. Beware of 'charities' where you don't see their good works in your community. Many car donation companies that claim to support kids or kars are often deceiving well intended donors with cute websites and jingles. For more information on these unscrupulous operations, you can access useful information here:
2.  https://www.charitywatch.org/charitywatch-articles/charity-finishes-last-at-car-donation-charities-micro-mini-share-of-proceeds-go-to-charity/163
   Make sure the charity is eligible to receive tax deductible contributions. The most common types of qualified organizations are section 501(c)(3) organizations, such as charitable, educational, or religious organizations. Visit IRS.gov to search for registered charities. Car Donation Wizard only works with esteemed, 501(c)(3) non-profit organizations.
3. Be sure that you get a receipt from the charity for your car donation. Car Donation Wizard delivers the charity tax receipt for your records following the sale of your vehicle.
4. If the car is worth $5,000 or more, an independent appraisal may be necessary. The donor would fill out Section B of IRS Form 8283.
5. Always consult your tax adviser or the IRS for more information about how you can claim charitable deductions. The IRS can answer your tax questions and can provide tax forms, publications, and other reading materials for further assistance. IRS materials are accessible through the Internet at www.irs.gov, through telephone ordering at (800) 829-3676, and at IRS walk-in offices in many areas across the country.

Charity Car Donation Help Links

If you have additional question about deductions and IRS Regulations the following links may be of assistance:

IRS Publication 4303, A Donor's Guide to Car Donations (PDF)

Publication 526, Charitable Contributions (PDF)

Publication 561, Determining the Value of Donated Property (PDF)

Form 8283 Noncash Charitable Contributions (PDF)

Instructions for Form 8283, Noncash Charitable Contributions (PDF)

Links to Valuation

Kelley Blue Book

Edmunds

NADA Guides