Donating a vehicle to a nonprofit is a meaningful way to support a cause you care about, and in many cases, it may come with the added benefit of a tax deduction.
When you donate your car, you're helping nonprofit organizations fund critical programs and services. While every donor’s situation is different, vehicle donations to qualifying 501(c)(3) charities are generally considered tax-deductible under IRS guidelines.
Understanding the Basics
If you’re itemizing deductions on your tax return and donating to a recognized nonprofit, the IRS may allow you to deduct the value of your vehicle donation. The value of the deduction typically depends on how the nonprofit uses your vehicle—for example, whether it’s sold or used in their direct work.
Most vehicle donors will receive a written acknowledgment or IRS Form 1098-C from the charity, which includes the necessary details about the vehicle’s value and use.
End-of-Year Giving Reminder
If you're considering donating your vehicle before the end of the year, now is a great time to do it. Many donors choose to make charitable gifts in December to support nonprofits during the holiday season and prepare for the upcoming tax year. Be sure to start your donation by 11:59 PM on December 31 for it to count toward your upcoming tax filing. The donation date is typically marked by when you submit your donation form, not when the vehicle is picked up.
A Simple Way to Give Back
Vehicle donations are a hassle-free way to give. The pick-up is free, most vehicles are accepted regardless of condition, and you’re supporting the work of trusted nonprofits across the country. Get started today by visiting the Choose A Nonprofit page to select an organization and start your donation.
Note: For details about tax deductibility and how it applies to your situation, please consult a qualified tax professional.