INTRODUCTION
The donation of a car or other vehicle to charity is a significant charitable contribution, perhaps the largest
many people will give in their lifetimes. Whether the primary motivation to donate is convenience or altruism,
donors want to ensure that they receive the maximum tax deduction allowable.
Step 1: Choose an eligible organization
The most important consideration when choosing a
charity is determining its “exempt” status. To be eligible
for a tax deduction, the car must be donated to a tax-exempt
nonprofit organization, most commonly a 501(c) (3)
organization created for religious, charitable, educational,
scientific or literary purposes or for prevention of cruelty
to children or animals. Religious organizations such as
churches, synagogues and mosques automatically qualify
even without filing for 501(c) (3) status.
To verify if an organization is tax-exempt, use the IRS
Exempt Organizations Select Check, call the IRS at (877)
829-5500, or ask to see the organization’s IRS letter recognizing
it as tax-exempt.
Quick tip: Kars4Kids is a nationally recognized 501(c) (3)
organization. Our Tax ID number is 22-3746050.
Step 2: Itemize deductions
For a car donation to be eligible for a tax deduction,
the donation must be made solely for charitable or public
purposes and the donor must itemize deductions (such
as medical expenses and charitable donations) on Schedule
A of IRS Form 1040. Those taking the standard deduction
rather than itemizing will not receive a deduction for
their donation. Generally, it is worth the effort to itemize
if the total of the itemized deductions for that tax year is
more than the standard deduction one is entitled to.
Quick tip: Whether itemizing deductions is worthwhile
for you depends on the specifics of your situation. H&R
Block offers a more detailed guide to itemizing versus
taking the standard deduction. Always speak to your accountant
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