Donate your Car to Goodwill for a Tax Credit

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Tax Deductible Car Donations – Help Goodwill Industries, Veterans, Single Mothers.  Do you have a car on your property you don’t drive?  Why not donate your car to charity?  It’s been sitting in there for a while, and will all your best intentions, and you haven’t fixed it.

Tax Credit for Car Donations to Goodwill

Goodwill Industries will take your old car and sell it, and put the money in their funds to help the poor.  They may also repair the vehicle and use it as a part of the Wheels for Work program. This program offers interest-free car loans to low-income working adults.

Tax-deductible car donations can be a blessing to someone else, and you can deduct your donation on your taxes. Your act of kindness will help the less fortunate, and you can get a tax credit if you choose. Some organizations will take your donation and improve the lives of some disadvantaged families.

Your cars will be repaired, finely tuned, and sold to help single Moms return to work or disabled who want to work. There is no price gouging, and the person purchasing the car is allowed to make affordable payments to purchase a car without a large car note.

The Value of your  Car

Before you donate a car to charity, calculate your car’s market value using Kelly Blue Book or Edmonds, which are usually very reliable resources.  Also, consider how much you would ask for the car if you sold it personally.

New York’s tax system is about 7%. You will use these calculations when reporting your donations to the IRS.  Charities that receive car donations have their own talented mechanics that can make necessary repairs.

Tax Credit for Car Donations Help Veterans

Cars for US Troops is an organization that takes your used car and turns it into reliable transportation for a veteran. These brave men and women put their lives on the line to keep this country safe, yet they are often the poorest paid in the country.

If you have a car, you would rather donate to a U.S. veteran, and some organizations will take your donation.  You can also repair your car and give it to a Veteran directly if you don’t care about the tax deduction. They make the process as simple as possible. You can donate online or call the toll-free number.

Fill out the application, stating your full name, address, phone number, when to call, as well as the make, model, year of the car, and mileage, and VIN. Also, tell what the issues of the care are and what needs to be fixed. They’ll call you back and arrange a time to pick up the vehicle.  More information at CarsForUSTroops

What Should I do Next?

Once you have decided what charity you will be using, all your paperwork is filled out and signed, and you have proven ownership of the car, you are just about done. Now you have only to sign over your car title and keys to your charity.

Charities try to make donating a car as simple as possible. Go to the site or call the charity to determine the process and what type of documentation you will need.  New York uses the organization, Donate for Charity as their clearinghouse, so give them a call to get more information or find out what organization your charity uses as their clearinghouse for car donations.

Vehicles valued at over $5,000 require a professional appraisal before the donation can be made. The organization or clearinghouse does this appraisal as you are the one giving your car to charity. Ensure the organization you donate your car to is licensed and registered with the IRS, or you will not receive a deduction for your donation.

Evaluate the Charity

Please make a list of your favorite charities, research their donation process and how their donations are used.  Use a charity that gives a minimum of 70 -75% of its program’s income back into the car donation program.

To determine what portion of your donation a charity donates to the cause, go to Charity Navigator or  These organizations do all the work for you by evaluating and rating charities.

Several well-known and responsible charities accept cars.   Do a little research to find a reputable company.  Goodwill Industries is one well-known charity.  They receive cars and refurbish them to sell to the Cars for Work program. You can go in person or go online and fill out a donation application.


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