How to Donate Your Car to Goodwill

If your used car has lost its main purpose and is just sitting in your garage, you may be thinking about selling it or giving it away. If donating the car becomes an option, you'll find many advantages of sending it over to a charitable organization; a generous tax deduction, easy transfer of title, and the simple act of generosity for your donation are rewarding enough. Goodwill industries gladly accept car donations, and the contribution can be tremendously valuable to a prospective owner. Your car can help out a family in need, provide transportation options for a hardworking couple, or be used by Goodwill itself to deliver and transport goods for business.

To donate your car, you will need to drive the vehicle into the main headquarters in your city or town, and bring along the title. The entire process takes between 20-25 minutes, and you'll be able to claim a tax deduction immediately; no messy forms to fill out, Goodwill will provide you with a receipt and other supporting paperwork.

Donating Your Car: The Tax Benefits

You will need to know if you qualify for a tax deduction based on your income and filing status, but most people do qualify as long as the donation is going to an approved organization. Goodwill is on the approved list, but you may find other charities of interest: schools, religious organizations, and some affiliations also fall under this category. The IRS publishes a cumulative list of organizations to make the process easier; it's available online, or at the public library.

Just remember that you can only deduct contributions of you're filing a Schedule A Form 1040. There are certain limits on the amount being deducted. Finding out the value of your car is simple; since you're not in a situation to make a profit, you can just look up the blue book value of yours. Keep in mind that the IRS will look for the fair market value of your car so you'll want to be as realistic as possible (as always).

Donating Your Car: Just for the Record