Repairable used car donations or other vehicles can be accepted provided the vehicle is repairable for less than what the charity could sell it for.
There are a few exceptions in the new tax law compared to the old tax law, regarding the fair market value section, for example, you may base your deduction on the vehicle's fair market value if the charity ends up selling it to a needy individual at a discounted price or if the charity uses the car as part of its mission instead of selling it at a fair price.
Charitable car donations are given to the selected recipients directly or they are sold and the money is given away as part of the charity function.
For making used car donations you should choose a charity organization that uses the proceeds from the auctioned vehicle for its own charitable programs or distributes vehicles received through cars for charities to other needy families. When you are planning to make tax donation car, you might want to check if the charity is IRS approved as per 501(c)(3) and also offers free pickup or towing service, especially if you do not have the time to drop it off yourself.
It is a good idea to select a charity that has a car donation center, accepting used car donations, close to where you reside, thus saving time and effort for you. You can make used car donations also to those organizations which share the proceeds with smaller non-profit charity organizations.
With your cars for charities , Charity Cars can continue to help families who are disadvantaged. Your donation of a vehicle to the Charity Cars program can help these families in their transition from a dependent lifestyle to a more self sufficient living. Charity Cars will use your tax donation car to continue their free vehicle program. Your cars for charities may be presented to a struggling family who deserves a reliable form of transportation so that they might better take care of each other or it may be sold to fund the program. Having their own vehicle will make it easier for them to get back and forth to work and other places that they need to go.
To reward charitable donations, the government allows a tax deduction provided that donations are classified tax deduction donations, and a car donation is one of them. In the past, a tax deduction was based on the fair market value of the donated car. But then the government found out that individuals used car donations for the sole purpose of enjoying a tax deduction. And what was worse was that the claimed fair market values were not always accurate. These values considered only the make and model of the car, and did not consider the car's depreciated state. So what usually happened back than was that the gross sales amount of the donated car did not match the claimed fair market value and the tax deduction was a bloated value.
It does, though. Charities that accept tax donation car will give the chance to write off your gift when you file income tax.