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Donate Your Car For Cash – Should You Donate Your Car For Cash Or Sell It?


When you think of the phrase “donate your car for cash”, what comes to mind first? Do you picture yourself taking household goods and clothes to a local donation center?

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Do you see yourself giving your car to an organization and holding some cash?

Sure, it is common to donate furniture, household items and clothing to a local donation center. But your car is also needed!

There are lots of benefits of donating your car. And we will explore those benefits and more in the words ahead!

donate your car for cash

Where Can I Donate My Car?

When it comes to donation of a car, there is one simple reason why most charities will accept car donation: vehicles are expensive and they can be sold for a profit!

Once a charity sells a car, those funds go to the charity's projects. The money may also be used to pay the salaries of the workers at the charity. So, as this is the most common kind of car donation, is it the most beneficial way to donate a car or is there another place that could use your car? Check out some places that will gladly accept your car!

Veterans Organizations

Our country’s veterans need to be honored and revered. They are beloved men and women, who selflessly gave to this country, to protect it. Lots of organizations that help our veterans would gladly accept your car! DAV.org is a great organization that accepts cars, as they assist our brave men and women. Their process includes: 1) calling or submitting an online form, 2) schedule a free pickup, and 3) obtaining a form you can use toward your income tax filing! Click here to learn more!

The Goodwill

The Goodwill will gladly take your car donation! Much like DAV.org, the Goodwill helps our country’s men women and children. The Goodwill Car Donations organization specializes in providing a quick, east and efficient process for you!

They offer free towing as well as a tax receipt! Their entire process includes: 1) filling out the donation form, 2) scheduling a time for the towing and 3) getting your tax deduction receipt in the mail! Click here to learn more!

Cars Fighting Cancer

If you are interested in helping Americans who are battling a cancer, your car donation may be just what you can provide! Cars Fighting Cancer offers an easy method of donating your car. They even accept cars in all of the 50 states!

Cars Fighting Cancer's has a desire to fight cancer through education, information, service, support, research, and more. With the vehicle donations they receive, they are able to continue to eradicate this deadly disease. Click here for more information!

Habitat for Humanity

If you have ever seen a televised Habitat for Humanity story, featuring a family receiving a new home, then you know the importance of donating your car here.

The proceeds from the sale of your donated vehicle to this longstanding organization will help Habitat families build stability, personal strength, stamina, confidence and self-reliance right here in our country! Just like the other organizations, they offer quick and easy method of donating your car! First, you go to their “online wizard”. Then, you can offer your vehicle information. Finally, Schedule a pick up. Click here to learn more!

Finally, check with your local communities and organizations that need car donations. You could see a great tax write-off!

Donate Your Car For Cash – Who Benefits From My Car Donation?

When you donate your car, you want your donation to help others while doing good things.  Many lower-income families benefit from car donations. With your donation, you can help families gain a sense of stability, security, independence and opportunities.

While you benefit from tax deductions, your local community benefits from having one less family how is struggling!  Other groups that benefit from car donations, include students, the elderly, veterans and more!

Car Donation – Documents Needed

Donating a car to charity is an easy process and will not take you long to do. Lots of places that accept car donations generally have a three-step method.

Usually, there is a form you have to fill out. Then you speak to a customer service representative to schedule a time for them to come and get your car. Finally, the company will come to pick up your car with the promise of a tax receipt you can use when filing your taxes.

While there are requirements that vary state-by-state, you generally have only one document needed to donate a car: the car title.  You must have the car’s title of a duplicate car title. Many places will not accept your car without the title. This makes the car easy to donate and eligible for tax purposes.

Lots of places usually need the car’s original title and you can also get a copy. All you have to do, is contact your local department of motor vehicles or your DMV.

In many states, the method of obtaining a copy of your vehicle's title can be done online! You never have to even step foot in an office! Additionally, you need the car's VIN and title number. You can find these items on of your vehicle's registration card.

Once you complete the title for car donation, make sure that you fill it out correctly. Chances are, your local DMV office will not accept scratched-out, “whited out” or erased titles or paperwork.

Contact your local DMV for additional information regarding a vehicle donation.

Donate your Junk Car For Cash or Charity – Is It Worth It to Donate My Car?

What should you do? Should you donate your junk car for cash or charity? Well this depends on the outcome you want. If you want or need the money, then junking it for cash is the way to go! But if you could stand a tax deduction, donate it to the charity? It all comes down to a personal decision.

In our modern times, the IRS is closely looking at vehicle donation ensuring that the paperwork taxpayers turn in is correct. They are also checking to see if the donation accurately reflects their donated vehicles merit and value. In the past, taxpayers who donated vehicles were able to claim a deduction based on the car's fair market value. But with recent tax laws and changes over the years, these rules have become more intricate.

While the IRS has rules about vehicle donations to charity. While they may be difficult to understand, there are two points to remember:

  1. The first point to remember is that the amount you can claim from the donation, still depends on the vehicle's fair market value. It also depends on how the charity ends up using the vehicle. This fact makes your donation more complicated than simply selling the car. In simpler words, you will not know how much the deduction is worth when you make the donation.
  2. The second point to remember is you follow up with the charity, to find out how the vehicle was used. This helps to justify the deduction claimed on the tax return. Need additional information? Click here and learn more from the IRS!

Generally, many people who donate their car can claim about $500.  When many consider the legwork involved as well as the uncertainty of the financial benefit, some opt out of the car donation choice. Lots of folks turn to selling.

On one hand you can junk car and get the cash. on the other, you can help a local family, a group of veterans or someone else.

Car Donation – Perform that Checklist!

Still want to donate your car? Check out our points below that should make your donation a worthwhile experience for all involved!

  1. Itemize your return. If you want to claim a vehicle donation to reduce your federal income taxes, you have to itemize deductions. Even if your donated auto is your only deduction, you have to itemize. Check with your local tax preparer for more information.
  2. Make sure that your charity qualifies. Only donations to qualified charities are able to provide a tax deduction for you. Your charity of choice must be a qualified charity and be recognized by the IRS recognizes as a 501(c)(3) organization.
  3. Get your paperwork in order! Getting tax benefits for a donated car demands lots of paperwork. Your tax professional can help you but you want to make sure that you keep all tax receipts and documents.
  4. Let your tax preparer know. When you decide to donate your car, make sure that you let your tax preparer know beforehand. She or he can set aside the documents you need to donate your car and prepare your taxes with the car donation in mind!

I May Just Sell My Car

Selling your car is a viable option, but that requires work as well. Whether you sell it privately or online, check out some helpful tips that ensure a smooth sale!

  1. Be sure that you have your car title! Just as you would donate your car, you have to have that title. Not many car buyers will purchase a car without the title.
  2. For online sales, make sure that you have pictures of your car and a description that tells perspective buyers about the car.
  3. Be an honest seller. Tell potential buyers all of the “good, bad and ugly” about your car! You will not drive away buyers from your car, being honest.

Get a vehicle report. Do you have a report history about your car? You should! Make sure potential buyers can know about your car. This shows you as a trustworthy seller! Click here to obtain a vehicle history report!

Whether you decide to sell or donate your car, you will have work ahead of you. Each option provides benefits for other people. You have to decide what your uliamate goal is, and then make a solid plan!

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