Ready to donate an unwanted car but don’t know where to start? many charities accept vehicle donations. the hard part is finding a legitimate charity that qualifies for a charitable contribution deduction, has a mission you believe in, and uses your donations efficiently.
Here’s a look at some of the major, reputable charities that readily accept car donations.
Reading: Car donation reviews
5 Best Car Donation Charities
1. habitat for humanity
Habitat for Humanity accepts donated cars, trucks, motorcycles, RVs, boats, snowmobiles, farm equipment, and construction equipment. the vehicles are resold or recycled to raise funds to support the charity’s mission of building safe and affordable homes for families in need.
watchdog charitywatch gives habitat for human international a grade of b (on a scale from a+ to f) for its financial practices. charitywatch says the organization spends 73% of its budget on programs, relative to overhead, spending an average of $27 to raise $100 in contributions.
guidestar, which researches non-profit organizations, awarded habitat its gold seal of transparency in 2020.
To donate a car to habitat for humanity, you can use the website’s car donation wizard or call 877-277-4344 to provide your vehicle information and schedule your pickup.
2. Ronald McDonald House Charities
Your local chapter of Ronald McDonald House Charities (RMHC) may accept donations of cars, trucks, boats, RVs, and other vehicles. The organization sells the cars and uses the proceeds to help provide families with a home away from home during the hospitalization of a seriously ill or injured child.
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charitywatch gives the rmhc national office an a rating. The watchdog says the organization uses 88% of its budget for programs, compared to overhead, and spends $9 to raise every $100 in contributions.
To donate a vehicle to rmhc, call 855-227-7435 or visit the group’s car donation website. charity rides for adults & services (cars), a nonprofit organization that partners with rmhc for vehicle donations, will pick up your vehicle free of charge and send you the necessary paperwork to claim a charitable contribution on your taxes.
3. the salvation army
The Salvation Army accepts vehicle donations at certain locations. The organization sells donated vehicles to fund various programs, including disaster relief, homeless shelters, food pantries, veteran services, job training, and more.
The Salvation Army organization is made up of four territories: Central, Eastern, Southern, and Western. all are rated b+ or better by charitywatch.
a salvation army website can help you find car donation services near you.
4. goodwill
You can’t drop off a car at any goodwill donation center, but the charity accepts donations of cars, RVs, boats, motorcycles, and many other specialty vehicles. goodwill sells all donated cars and uses the proceeds to support their vocational services.
goodwill industries international received a rating from charitywatch, which says the organization spends 87% of its budget on programs, relative to overhead, and spends just $2 to raise $100 in contributions.
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To get started, complete the car donation form at goodwillcardonation.org or call 855-980-0171. the organization will schedule the collection of the vehicle and send you a receipt.
5. canine companions for independence
Canine Companions for Independence offers service dogs to adults, children, and veterans with disabilities, and service dogs to professionals working in health care, criminal justice, and education.
charitywatch gives canine companions a b rating, saying it uses 68% of its budget for programs and spends $20 on fundraising for every $100 in contributions.
The organization accepts donations of cars, trucks, boats, planes, motorcycles and other vehicles, working or not. you can start your donation online or by calling 866-398-4483.
claim a tax deduction for car donations
Before you donate your car, it’s a good idea to read the irs guidelines for charitable donations to make sure you qualify for the deduction you expect to claim. the following tips may help:
- Plan to itemize deductions. To get a tax benefit for donating your vehicle, you must itemize deductions. and, in general, your total itemized deductions, including out-of-pocket medical expenses, home mortgage interest, state and local taxes, and charitable deductions, must be more than the standard deduction available for your filing status. For many taxpayers, that’s a tough hurdle, so you may want to work with your tax advisor to run some numbers before you donate to see if it’s worth breaking down.
- Gather the correct documentation. The IRS has strict rules for documenting vehicle donations, so you’ll need to obtain the correct documentation to claim your write-off. Most charities sell donated vehicles and your deduction is limited to the proceeds received from the sale. Once the charity sells the car, they must send you Form 1098-C to confirm the sale date and price. For more details, see IRS Publication 4303, A Donor’s Guide to Vehicle Donations.
end result
You may not get a tax benefit from donating your unwanted vehicle, but the charity that accepts the car will surely appreciate it. after all, even a broken jalopy can be sold for scrap.
Just do your research on the charity you plan to donate your car to and order your documentation if you plan to claim a tax deduction. then donating your car will be beneficial to you and the charity.
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