Figuring out where and how to donate your junk car may seem overwhelming, but Car Donation Wizard is here to help make the process simple with some car donation tips.
Check out these tips on how to maximize your junk car donation:
- Pick the car donation service that returns the highest gross proceeds to charity. When deciding on which car donation program to use, see how much of the gross proceeds from the sale of your vehicle are returned to charity. Be aware of organizations that only tell you the net return. Car Donation Wizard will return 75-80% of the gross proceeds from the sale of your vehicle to your nonprofit, the highest of any car donation program!
- Be sure your organization is eligible to receive tax deductible contributions. The organization you choose should be an IRS-approved 501(c)(3) organization. You can visit the IRS website or use Charity Navigator to search for registered charities. Car Donation Wizard works with reputable local and national 501(c)(3) nonprofits throughout the United States. Donating your car through our program guarantees your eligibility for a tax deduction once your vehicle is sold. Car Donation Wizard will mail you a tax receipt for your records following the sale of your vehicle.
- Understand your tax benefit. The IRS will only allow a deduction for the fair market value of the car. This can be found on the tax receipt mailed to you by Car Donation Wizard for your donation. If the vehicle is sold for $500 or less, the donor can claim up to $500 of the fair market value. If the car sold for more than $500, the donor can claim a deduction of the selling price of the vehicle. If the car is worth more than $500, the donor must complete Section A of IRS Form 8283 and attach it to their tax return. If the car is worth $5,000 or more, an independent appraisal is necessary. In addition to Section A of Form 8283, the donor must also fill out Section B of IRS Form 8283. Take pictures of the car and save receipts for any vehicle upgrades to verify its value.
- Consult your tax adviser or the IRS for more information on claiming deductions. The IRS can answer your tax questions and can provide tax forms, publications, and other materials for assistance. IRS materials are accessible on the IRS website, by calling 800- 829-3676, and at IRS walk-in offices across the United States.
- Know that your vehicle will benefit the environment, too! Car Donation Wizard takes pride in reducing our carbon footprint by recycling junk and end-of-life vehicles. More than 75% of a car’s contents can be recycled, salvaging enough steel to produce 13 million new cars annually in the United States and Canada. According to the EPA, recycling steel saves 74% less energy than making new steel. This energy savings is enough to power more than 17 million households. Auto recycling also saves 85 million barrels of oil from being used for new vehicle parts every year.
How to Donate My Car
Wondering how you can donate your vehicle after reading those car donation tips? Car Donation Wizard has proudly raised over $200 million for our charity partners. Click here to read our blog with step-by-step instructions on how to donate your car. Support your favorite charity by donating your car online or calling us at 877-957-2277.