Guide to Donating Vehicles to Charitable Organizations

Donating your vehicle to charity has become a common practice in recent years. Since the early 2000s, nearly 80,000 Americans have contributed their cars to nonprofit groups, supporting various causes.

Giving away a used vehicle benefits both parties: the donor receives tax advantages, while the charity benefits financially. Car donations often qualify for tax deductions, but donors must follow proper procedures, such as filing the necessary paperwork online or in person before the donation.

To qualify for tax exemption, donors must meet certain conditions, including submitting a written acknowledgment, listing the donation on their tax returns, and claiming a modest deduction. If the car’s value is under $500, the deduction is typically based on the car’s fair market value.

Many nonprofits and insurance agencies lack permission to sell donated vehicles directly. Instead, they often collaborate with auction companies to sell them at auction. Several websites facilitate donating, selling, or auctioning vehicles, giving donors multiple options.

For example, platforms like Copart allow donors to list their cars, choose pickup times, and set preferences. They offer vehicles from premium brands such as BMW, Audi, Chevrolet, and more, dating from 1990 to 2016. Features such as vehicle model, mileage, damage, location, and fuel type help narrow down choices. Donations range from luxury cars to junkyard scrap heaps.

Charity Navigator provides detailed information about donated cars available for sale, offering insights on vehicle history, ratings, and condition—helping both donors and buyers make informed decisions.