Best Car Donation Charities in 2022 to Donate Your Old Vehicles, Cars & Trucks
What is a Car Donation Charity and How Does it Work?
Car donation charities are organizations that donate vehicles to people in need. People donate their old cars, trucks, and SUVs to these charities because they have reached the end of their useful lives. In return, the charity will help them by giving them a tax deduction and a receipt for their donation.
People who donate their cars can also get cash from the charity for their vehicle, which is often used to buy a new car or pay off debt.
Car donation charities are an important part of reducing waste and helping people in need.
Donating your car to charity is a terrific way to get rid of your old car while also helping your favorite charitable organization fund its services. Most charity do not handle the vehicle donation process since it is expensive and time-consuming. Instead, they usually hire a commercial or nonprofit fundraising company to handle all of the arrangements, keeping a portion of the proceeds and donating the remainder to the charity.
Unfortunately, the car donation market is rife with vermin who will gladly take your vehicle off your hands in exchange for a part of the revenues from its sale, which is frequently as low as 13 percent.
It’s critical to donate through a highly recognized intermediary that will transmit 75 percent or more of the net proceeds to the charity of your choosing to ensure that it receives a fair share of the proceeds. An intermediary who passes on 60 to 74 percent of the net proceeds is more or less acceptable, while anything less than 60 percent is improper.
Furthermore, it’s a good idea to donate exclusively to “highly efficient” charities, which indicates that at least 75% of their expenses go directly toward their programs to achieve their stated objective.
According to Cash Auto Salvage, a salvage company based in New York, charities recycle nonworking vehicles for scrap metal and parts, which can bring in a few hundred dollars. Working vehicles, however, bring in significantly more, according to FenderSplendor, a car paint meter maker. On average, charities sell them at auction for between $300 and $3,500.
Furthermore, donating your vehicle saves you the time and effort of trying to sell it yourself while still allowing you to gain financially from a tax break. In fact, identifying the correct charity to contribute to is the most difficult aspect of car contributions.
Here are the Best car donation charities in 2022;
- American Diabetes Association
- Car Talk Vehicle Donation Program
- Charitable Adult Rides & Services
- Donate A Car
- Habitat for Humanity
- National Kidney Foundation
- The Arc
- Volunteers of America
- Wheels For Wishes
1. American Diabetes Association
The American Diabetes Association strives to prevent, treat, and improve the lives of those who have diabetes.
It works with a car donation business to sell your donated automobile at auction after you donate it. The money raised is used to support the organization’s programs. If your car isn’t running, the organization will recycle it for the scrap metal and parts it contains.
Call the American Diabetes Association at 800-ADA-6570 (800-232-6570) or fill out the online form on its website’s car donation page to donate your vehicle. Within three to four days, a representative will call you to arrange free pickup of your vehicle.
We’ll send you an acknowledgement letter of the sale when your vehicle sells for more than $500. We’ll include your VIN and date of sale, along with the gross proceeds and a certificate or your personal donation to the American Diabetes Association.
2. Car Talk Vehicle Donation Program
The revenues from the sale or recycling of your vehicle are used to benefit your local NPR station through the Car Talk Vehicle Donation Program. NPR is a non-profit media institution that investigates local and national news and human-interest stories.
The Car Talk Vehicle Donation Program is a remnant of the public radio program Car Talk. Until one of the brothers died in 2014, the show was presented by a couple of brothers who answered listeners’ weekly inquiries regarding autos. The automobile contribution program, on the other hand, is still going strong as a method to express support for public radio.
To donate your vehicle, call 877-215-0227 or fill out the online form on the charity’s website. A representative will contact you to arrange a free pickup time that is convenient for you. You don’t even have to be present if the title has already been given to the charity or if you’ve left it in the glove box for them.
If the charity sells your donated vehicle at auction or recycles it for scrap metal or parts, you will receive either a sales receipt or an IRS form 1098C within 30 days of the sale, depending on the sale price of your vehicle.
3. Charitable Adult Rides & Services
CARS (Charitable Adult Rides & Services) is a 501(c)(3) organization that provides vehicle donations to other charities. As a result, it’s a one-of-a-kind combination of vehicle dealership and philanthropic organization. It also has a program called On the Go that gives food and transportation to elderly.
The program allows you to donate your vehicle to any charity of your choice, regardless of whether or not that charity is currently a CARS partner organization. They will also accept any vehicle.
CARS works with over 400 vendors across the United States to sell your vehicle once you donate it. Auctions, individual buyers, and salvage yards are examples of this. The organization selects the retailer where it believes the item will sell for the highest price, increasing your selected charity’s donation and your tax deduction.
To donate your vehicle, fill out the online donation form or contact 855-500-RIDE (7433) to arrange a free pick-up time that is convenient for you. It may be able to pick up your vehicle the same day you call.
The agent who picks up your vehicle gives you a donation receipt. If your vehicle sells for less than $500, you’ll receive a thank you letter from the recipient charity within 30 days of the sale. CARS will also send you a 1098C if it sells for more than $500.
4. Donate A Car
Donate A Car is not a charitable organization in and of itself. Insurance Auto Auctions Donation Division, a North American auto auction corporation, offers a vehicle donation service. It picks up and auctions off your car, and you can choose which of its 300 charity partners will benefit from the proceeds. Donate A Car, unlike the scammers to be careful of, donates 70% or more of the sale price to its partner charity.
Among the charities that have partnered with us are:
Animal welfare organizations
Charities dedicated to curing or assisting people suffering from specific illnesses such as lupus, diabetes, or cancer
The Red Cross, for example, is a general humanitarian charity.
To choose your cause, go to their website. Then, using your contact information and the vehicle you’d like to donate, fill out a donation form. Alternatively, contact 800-237-5714. You don’t have to be there when a representative from Donate A Car comes to pick up your car for free the next day.
Donate A Car will mail you a receipt about five days after a representative takes up your vehicle. If your vehicle sells for more than $500, you will receive a Form 1098-C within 30 days of the transaction.
Goodwill is one of the most popular sites to donate unwanted home goods, with over 3,200 locations across the US. When it comes to donating their used cars, it may not be the first place that comes to mind. Goodwill, on the other hand, enthusiastically accepts donated cars and vehicles of all kinds, including commercial and fleet vehicles.
Goodwill uses the earnings from the sale of donated cars for employment training and job placement programs, just like it does with the used clothing and home goods it sells in its donation stores. Individuals with impairments, those with minimal job history, participants of government assistance programs, those with language problems, and people who have undergone business downsizing are all served by Goodwill.
To donate your car, go to Goodwill’s car donation website and fill out the online form, or call 866-233-8586 to schedule a free pickup. Within 30 days of selling your vehicle, Goodwill will send you a tax-deductible donation receipt or a Form 1098-C, depending on the vehicle’s sale price.
6. Habitat for Humanity
Habitat for Humanity is a non-profit organization that builds homes for persons in need in the United States and around the world. Donating an automobile to Habitat for Humanity helps the organization support its operations, such as the procurement of supplies for building and repairing homes for low-income people.
Habitat for Humanity, which uses Car Donation Wizard to resell donated vehicles, has one of the highest percentages of proceeds from vehicle sales going directly to their initiatives, with 78 percent to 86 percent going to their projects. Vehicles that aren’t eligible for auction are sent to salvage yards, where they are compressed into steel beams that are used to construct houses. Learn more by visiting the charity’s commonly asked questions page about car donations.
Use their online form to donate your automobile or truck. Call the organization at 877-277-4344 to donate any other sort of car. Your vehicle will be picked up for free by a representative. Habitat for Humanity will give you an appreciation letter with the sale price within 30 days of the sale of your car, which you can include with your tax return.
7. National Kidney Foundation
The National Kidney Foundation strives to raise kidney disease awareness. It also offers assistance and advice to kidney patients and their families, as well as funding treatment and prevention research.
The organization sells your car at auction to raise funds for its activities after you give it. If your car isn’t running, it will be recycled for components by the foundation.
Call the National Kidney Foundation at 800-488-CARS (2277) or fill out the form on their website’s donor page to donate your car. Then, whenever it’s most convenient for you, schedule a free pickup time. Most automobiles can be picked up within 24 hours.
You will receive a letter of confirmation within a week of donating your vehicle in order to fund the well-being for someone in need. Within 30 days, you will either get a sales receipt or Form 1098-C from the charity, depending on the sale price.
8. The Arc
The Arc is the nation’s largest community-based organization dedicated to advocating for and serving persons with intellectual and developmental disabilities and their families of all ages. Job training, supported employment, transportation services, transition planning, and early intervention are all part of its comprehensive array of programs and services. They also include health services, travel programs, technology development funds, and even legal defense aid.
Melwood, a nonprofit organization that provides job training and employment to people with disabilities, manages its vehicle donation program. From the initial contact with the donor until the payment of the sale revenues to the charity, the Melwood Charity Car Donation Center manages car donations.
Fill out the online form or call 877-MELWOOD (877-635-9663) to schedule a free pickup appointment for your vehicle. You are not need to be present when a salesperson picks up your vehicle. Most automobiles can be picked up within 72 hours.
Melwood will give you three different receipts. When the towing firm picks up your vehicle, you’ll get the first one. Melwood will send you an official letter thanking you for your donation after the towing business has informed Melwood that the vehicle is in their custody.
The IRS requires that the value of your vehicle on the date of the sale be recorded on a form 1098-C. The form will include information about the amount of tax you can deduct for your records.
9. Volunteers of America
Volunteers of America is a non-profit organization that helps people in a variety of ways.
It helps at-risk youth, those with impairments, and people who are homeless. It also meets basic requirements like food and clothing for those who are poor or without resources, such as those who have been affected by natural catastrophes.
It also gives them access to mental health services, such as substance abuse treatment. Homeless persons, veterans, and formerly jailed people can all benefit from the organization’s housing help.
Call the charity at 833-300-5737 to donate your vehicle, or go to their website’s donor page and fill out the online form. You can have your vehicle picked up without paying any additional costs, and you’ll receive a donation receipt for tax-deduction purposes within 30 days of the sale of your vehicle.
10. Wheels For Wishes
Wheels For Desires is an automobile donation initiative that aids the Make-A-Wish Foundation, which grants the wishes of children with serious illnesses. Granting these desires can be the spark of hope that provides children and their families the fortitude to continue during a tough time, as mentioned in the charity’s goal.
Fill out the online form or call 855-278-9474 to arrange a free pickup time that is convenient for you. Wheels For Wishes mails you a receipt of donation for your vehicle shortly after you donate it. You’ll receive a Form 1098-C showing the sale price of your vehicle within 30 days of it being sold.
11. Your Local High School or Vocational College
Giving an automobile to a local high school or vocational college serves as a test subject for an auto mechanics lesson. Donated vehicles are extremely beneficial for learning at schools that have these programs. However, finding out which institutions accept donations necessitates some investigation.
Begin by contacting the administration offices of each of your local high schools or vocational schools to inquire about their auto shop programs. Then, by contacting directly with the shop teacher or program director, discover if your car is qualified for donation. It’s worth noting that certain programs only use American vehicles.
If you wish to take a tax deduction, make sure the school is a 501(c)3 nonprofit. You can only deduct charitable contributions to 501(c)3 nonprofit organizations, according to the IRS.
Then figure out how to get the car to the school. You can drive it over if the car works. If you don’t, one disadvantage of this donation option is that you’ll have to pay to have it towed.
Transfer the title to the school, ensuring sure that the title and keys are delivered to the person who will be responsible for the car. Then wait for your donation receipt to arrive. A receipt indicating the value of your donation will be prepared and sent to you by someone from the school.
Alternatively, you can search for educational NGOs, such as high schools and colleges, on established automobile donation websites like Cars2Charities. This allows you to skip the DIY method entirely and have Cars2Charities’ parent company, Riteway Charity Services Inc., a well-known car donation program, handle the donation process for you, including free pick-up and handling of any title issues, even if your local school isn’t on the partner charity list.
However, if you take this route, your car will be auctioned or sold to a salvage yard for scrap metal and parts, and the money will be donated to the school instead of the car.
How Car Donation Charities are Disrupting the Nonprofit Industry
The car donation industry is a growing market for nonprofits. They have been able to raise millions of dollars in donations because of the way they sell used cars and donate them to charity.
The car donation industry has been able to raise millions of dollars in donations because they offer the donors a tax deduction when they donate their cars. However, there are some challenges that these charities face.
Some nonprofits have found success with their car donation programs by partnering with auto dealerships that offer incentives in exchange for advertising space on donated cars.
What is Auto Repair Cost and Should You Before a Charity Car Donation?
Auto repairs can be costly. In some cases, it is best to consider the cost of your vehicle before making a donation to charity.
A car can be worth $1,000 or more after an auto repair. If you are considering a car donation, make sure that you have enough money to cover the cost if it is needed in the future.
Questions You Need to Ask Yourself before you Donate your Vehicle & Why
The following are some questions that you should ask yourself before you donate your vehicle to charity.
– What will happen to my vehicle after it is donated?
– Will the charity be able to sell it and make money from it?
– What will happen if I never see my car again?
It’s important for donors to understand how their donation can impact the charity.
Steps to Select a Legitimate Car Donation Charity
Step #1: Check if the charity is legitimate
The first step in entrusting your keys to a charity is to ensure that they are reputable.
Checking the charity’s registration status is the most critical step. You should double-check if the IRS has designated the group as a 501(c)(3) non-profit. Now, it’s great if the charity mentions their charitable status on their website or on social media, but that’s not enough.
To double-check, go to the IRS website and type in the charity’s name. Here are the results of a Vets Vehicles search:
You should also look up the charity on sites like Charity Navigator or Charity Watch to check if it has a strong track record of delivering on its promises.
Step #2: Make sure a minimum of 80% proceeds go to charity
It’s not uncommon to be concerned about where charitable gifts are spent. How can you be certain that the charity will make the most of your donation and that it will benefit those in need?
Because many car donations now go through third-party websites or organizations, you must ensure that at least 80% of the vehicle’s entire worth goes to the charity of your choice—not the third party.
Step #3: Crosscheck all paperwork provided
Apart from helping a worthy cause, the most crucial aspect of your car donation is completing the paperwork correctly.
After all, if the charity to whom you donate your car does not supply you with the necessary documents, you will be unable to claim the donation as a tax deduction at the end of the year.
When it comes to car donation papers, the following are the most crucial factors to remember:
If your vehicle contribution is worth more than $250, the IRS requires you to have written confirmation from your chosen charity. Your name, vehicle identification number, and donation date must all be included on the paperwork.
If your car is worth more than $500 but less than $5000, you must complete Section A of IRS Form 8283 and attach it to your tax return.
You must receive an independent evaluation and complete Section B of Form 8283 if your car is valued more than $5,000.
It may seem like a lot, but if you need a rough market value for your automobile, the Hearst Black Book, Kelley Blue Book, or the National Auto Dealers Association can help.
When the charity picks up the automobile or you send it off, CNBC’s Andrew Osterland recommends that you sign over the title of the car to the organization and have a representative sign it as well.
“If someone is picking the car up, have them sign the title and take a photocopy of it,” he says.
“People have been on the hook for liabilities on donated cars that were not properly signed over to a new owner.”
Step #4: Choose charities that don’t charge towing fees
The majority of the charities on our list will take up your automobile for free, which is exactly what you should look for when considering donating your vehicle.
Not only will it be more convenient than driving the car to the charity of your choice, but you’ll also save money because some charities charge removal or towing costs.
Step #5: Choose charities that accept direct car donations
Choosing a charity with whom you can directly communicate is the simplest method to ensure that you get the most out of your car contribution.
Although third-party contribution platforms are handy and claim that 80% of your money will go directly to the charity, most organizations now offer online donations as well as specialized customer service teams who can help you set up direct donations.
Donating your car directly to the organization is also the greatest approach to ensure that the organization receives the best potential price for it. While it’s inconvenient, some third-party providers sell cars at a lesser price since they aren’t as motivated as the charity to receive the greatest price for the vehicle. According to reports, certain attorney general offices have filed lawsuits against car donation program operators, accusing them of misrepresenting themselves as charity when they were, in fact, for-profit organizations.
The best advise we can give is to conduct your research and, if feasible, donate directly to your favorite organization.
Donating a car is a win-win situation for both you and numerous charitable organizations.
It’s not only convenient (you can even have it taken up from your driveway! ), but it’s also a terrific way to save money on your taxes. While donating your automobile is safe, you should do your research to ensure that the charity you’re considering is legal, has a good reputation, and will give you with the proper documents when it comes time to file with the IRS.
All you have to do now is hand over your keys if you’ve done your research and picked a worthwhile charity.
Best Ways to Update Your Charity Vehicle Identification
There are many ways to update your charity vehicle identification. You can add a logo, change the color, or even change the font.
1) Add a logo: In order to add a logo, you need to create a vector file in Adobe Illustrator and export it as an AI file (.ai). Then you need to import that file into your design software such as Photoshop and use it for your vehicle identification.
2) Change the color: If you want to change the color of your vehicle identification, then you need to create a new design and then use that design for your vehicle identification.
3) Change the font: If you want to change the font of your vehicle identification, then you need to create a new design and then use that design for your vehicle identification.
Conclusion: Start Using a Car Donation Charity Today to Supercharge Your Productivity & Creativity
As the internet has evolved, so have the tools. Nowadays, we have a wide variety of devices to help us manage our time and get more done. A few years ago, the only way to save time was by using a paper planner which is why many people still use them today.
But now, there are many new ways to save time and get things done. One of these ways is by donating your old car to charity. You can donate your car today and make an enormous difference in someone else’s life while also saving space in your garage or parking lot.
It’s not as straightforward as dropping off a bag of unwanted clothing or household items to donate a car to a charity. Car contributions are governed by specific laws. Before you donate, there are a few things you should know:
State laws on title transfers for vehicle gifts differ, but the charity you choose should be able to assist you with any questions you may have.
If you want to deduct your donation from your taxes, you should first learn about the IRS requirements for vehicle donations. You must provide certain papers with your tax return, such as the charity’s tax receipt, and fill out separate tax forms depending on the amount of your deduction. For further information, go to the IRS website and read the IRS publication.
It’s possible that the car’s value isn’t equal to the amount of the deduction. If it sells for less than $500, you can deduct the fair market value — up to $500 — but you’ll probably only get a charitable receipt in that case. You can deduct the sale price if your vehicle sells for more than $500, and the charity will issue you a Form 1098-C or a letter of recognition to include with your tax return.