Whether you are tired of maintaining your car, live in an area where you don’t need a car, or are just thinking about getting a new car, donating your old car to charity is a noble decision that can help improve the quality of life of the person on the receiving end. In addition, the person donating can still potential receive a financial incentive in the form of tax deduction.
Tax deductions are available for donations that are made to charities that the IRS has determined to be tax-exempt. In order to see if an organization is verified or not, contact the Public Charities Division at (617) 727-2200, ext. 2101; the IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500; or look for IRS Publication 78 in your local library’s reference section or on the IRS website.
Religious institutions such as temples, synagogues, churches, mosques, and governments are not required to register with the Non-Profit Organizations/Public Charities Division or apply for tax-exempt status. Therefore, they may not be listed, but donations to these institutions are tax deductible.
To find a list of charities to donate to, check here.
For more information on the logistics of donating your car to charity, check here.