Car Donation Tax Deduction - How To Get Yours

Getting a car donation tax deduction would be easier if the states had a standard way of registering charities. But many states have different rules governing charities.

For most states, this means registering with either the Attorney General's office or the Secretary of State. A couple states require the charity to be licensed to operate in that state. But some states don't require registration or licensing at all.

So to get your car donation tax deduction, several things must be right:

1. The charity - and/or the professional solicitation service for the charity - must be following the state's rules.

2. The charity must be registered with the IRS as a tax-exempt organization.

3. You must itemize your taxes and claim your car donation tax deduction using the table on the appropriate IRS form.

So you must use 'due diligence' in checking out a charity before donating your car or truck.

Important Note:

There is a difference between a charity (such as "Goodwill Industries") and a professional solicitor who works for Goodwill.

A solicitor is "professional" if he takes charitable donations and gives only a percentage to the charity, keeping the rest as profit.

But it's important to check out the solicitor before handing over your donation, because some may give only a teeny, tiny percentage of your donation to the actual charity.

...And then there are the frauds - the 'bogus' solicitors. Gobs of car donation frauds are out there - in EVERY state. They may seem legit on the surface, but you won't receive a car donation tax deduction and your donated car or truck won't make it to people who need it most.

IRS Publication 4303, "A Donor's Guide to Vehicle Donation," provides guidelines for people who donate their used vehicles to charities. It's full of helpful tips to help your donation go smooth and to keep you from getting scammed. But the first and most important step for you is to make sure the charity you are considering is legit. And the best way to find this out is to check the state's Attorney General's website or the Secretary of State's website - or call them.

Be advised that registration with that state's Attorney General's office or Secretary of State does NOT mean that the state endorses the charity (or solicitation service for a charity)!

But what if the state does not require charities or solicitors to register? Then you would check with one or more of the online 'charity watchdog' organizations. There's at least four, so if you don't find any info about a charity with one, check with another.