Donating vehicles to US veterans

Do you or do you know someone who may have an old car sitting around? Would you like to get rid of it? You could try to sell it on your own and deal with taking photos, answering calls and emails, and then scheduling test drives with potential buyers, etc.

Or, you could donate your car to veterans charity and potentially get a nice tax deduction.

Many charities make it easy for you to donate your car. They might even pick it up—in running condition or not—for free. However, if you want to claim a tax deduction for your donation, you must follow IRS rules.

Many well-known and reputable charitable organizations accept car donations, including Habitat for Humanity, Disabled American Veterans, and the Make-A-Wish Foundation.

The easiest way to go about donating your car is to call the organization or fill out an online donation form. The charity will arrange to pick up the car or have you drop it off at a specific location. And, you’ll be given a receipt to use when you prepare your tax return.

When donating your car to charity, take precautions to avoid being scammed or contributing to a questionable charity. If you donate your vehicle to an organization that isn’t qualified by the IRS to receive tax-exempt donations, or if you don’t get the proper paperwork, you won’t be able to claim a tax deduction.

Most charitable organizations that are qualified to receive tax-deductible donations have a 501(c)(3) status with the IRS.

If you’re not sure whether an organization qualifies, search for the charity in the IRS Tax Exempt Organization Search Tool, or call the IRS at 877-829-5500 and have the charity’s name and address handy.