Vehicle Donation FAQ

Is my vehicle donation tax-deductible?

Yes. The St. Vincent de Paul Society of Marin County is a 501 (c) (3) charity, so your donation is a charitable contribution that can be deducted from your taxes if you itemize deductions. Since not all tax laws apply to all people, go to www.irs.gov for current tax laws and links to IRS publications. This IRS brochure is a Donor's Guide to Vehicle Donations http://www.irs.gov/pub/irs-pdf/p4303.pdf.

Do you use a “third party vendor” to run your car donation program?

No! This is probably the most important question you should ask before donating your car to any charitable organization. Third-party vendors are for-profit companies hired by non-profit organizations to collect and dispose of donated cars. These vendors take a significant commission, which can greatly reduce the amount of money going to the charity. Often, these vendors take your car immediately to a dismantler or wholesale auction house, further reducing the amount of money your vehicle may earn. Because your tax deduction is based on the amount of money your vehicle garners, using third party vendors may significantly reduce your tax deduction.

Here at the St. Vincent de Paul Society of Marin County, we run our own auto donation program. Unlike any other non-profit in Marin, the Society has our own charity car lot where we inspect, repair (if needed) and sell many donated cars directly to local residents. By running our own program, we can minimize costs, maximize funds to feed hungry people, and make your tax deduction our priority.

Who will come to my house to pick up my vehicle?

At the St. Vincent de Paul Society of Marin County, we can tell you exactly who will pick up your car. It is Bill Eberhart, a longtime Marin resident and car expert who has spearheaded our vehicle program for fifteen years. Bill receives rave reviews from our vehicle donors for his professionalism and helpfulness. Other charities use third party vendors, making it impossible to know the background or credentials of the person who will be sent to your home to pick up your vehicle.

How much will you receive from my vehicle donation?

Because we are not a third party vendor, every car that is donated will earn money for our Free Dining Room, which feeds hungry people in Marin 365 days of the year.

Is it possible that my designated charity will receive no money?

At the St. Vincent de Paul Society of Marin, the answer is an unequivocal “no.” Every car donated will generate some money for the Society. With other car programs, the charity receives net proceeds after the cost of processing, picking up, preparing and auctioning your vehicle. If the car brings in only enough to pay the third party vendor, then the charity is left with nothing.

How will my donation help people?

Our vehicle donation program is both a fund raiser and a social service program. Our charity car lot in San Rafael sells low-cost vehicles to many of our own Marin-based clients; low income people who cannot afford to pay retail auto prices for transportation to and from work. We work with our clients to help them find a safe, reliable car for their needs. In addition, proceeds from vehicle donations go directly to providing 250,000 meals per year to feed low-income and homeless people in our Free Dining Room in San Rafael. All proceeds from your vehicle stay in Marin County. If you are considering donating your car to another charity, please remember to ask where the money is going!

How much will I get for a tax deduction?

I.R.S. rules state that you are entitled to receive a tax deduction equal to what the vehicle is sold for by the charity, if you itemize your deductions. If the vehicle is sold for less than $500, you can deduct the fair market value up to $500. You will receive a tax receipt stating what your vehicle sold for within 30 days of the sale of your vehicle. 

In a small number of cases, donors may still take the car’s fair market value (the private party sale value as shown in online valuation guides such as Kelley Blue Book) as their tax write-off. According to the IRS, donors may claim a deduction of the vehicle's fair market value under the following circumstances:

--The charity makes a significant intervening use of the vehicle, such as using it to deliver meals on wheels. 

--The charity makes a material improvement to the vehicle, i.e., major repairs that significantly increase its value and not mere painting or cleaning. 

--The charity donates or sells the vehicle to an in-need individual at a significantly below-market price, if the transfer furthers the charitable purpose of helping a poor person in need of a means of transportation.

If your donation qualifies for a fair market value deduction, we will advise you of this fact at the time of sale.

Do you accept all vehicles? 

Yes! Our program accepts all types of vehicles. We handle cars, trucks, RV's, sport utilities, motorcycles, boats and motor homes.

We accept any vehicle, running or not running. As a “green” organization committed to sustainability, we are dedicated to getting older, higher polluting vehicles off of the streets, whether they are running or not. Of course, we take donations of newer cars as well.

Donate when your vehicle needs repairs that cost more than the vehicle is worth.

A vehicle which is old and needs mechanical repairs can stilll be a valuable donation.

Donate when your late-model vehicle has mechanical problems.

While it may be difficult for you to sell this type of vehicle, newer vehicles that have mechanical problems, particularly if not running, may sell for more at our charity car lot in San Rafael than you could get selling it yourself.

Donate when the dealer gives a low trade-in offer.

If a dealer is offering you a low trade-in price, please consider donating it. This vehicle may yield excellent results at our charity car lot in San Rafael, and can provide you with a good tax deduction.

Car Donation Charities in California

The act of donating a car to charity is one of the most rewarding things you can do. When you donate your car, you do more than just support a charity. You actually help to improve someone’s life.  To help a needy person, please donate car to one of these respected charities in California.
Established in 1946 in Davis, California, Freedom From Hunger has been fighting chronic hunger and poverty in the world through innovative programs designed to help families achieve long term food security. Their programs are serving over 18 million people in some of the poorest countries in the world. They are both nongovernmental and nonsectarian and they have been given an A- rating from the American Institute of Philanthropy.
Teach for America works to ensure that children in low income areas get an excellent education. Less than half of the children in California are on grade level for reading and math, and it ranks 48th in academic performance. In the Bay Area, Teach for America has been providing great education for over 10 years. In Los Angeles, they have operating since 1990. Teach for America works to recruit leaders who work to expand educational opportunities in low income areas and then teach for two years in those areas.
The Guthy Jackson Charitable Foundation is dedicated to the treatment and a cure for neuromyelitis optica. NMO is a very rare disease that can affect the optic nerve and spinal cord. People with this horrible disease can develop vision loss, or weakness, numbness, and sometimes paralysis of the arms and legs along with sensory disturbances and loss bladder and bowel control. Although there are some treatments available a lot more research is needed to find better ones and a cure.
A Home Away From Homelessness is dedicated to supporting and nurturing the needs of homeless and formerly homeless children and families in San Francisco and Marin. Their homes provide a physical, emotional and spiritual break for children along with educational, social and recreational opportunities.
Family Builders believes that every child has the right to grow up in a permanent, nurturing family regardless of the child’s age, race, ethnicity, gender, religion, sexual orientation, or medical, physical or emotional condition. Family Builders educates the community about the needs of waiting children, advocates on their behalf and places the children with permanent, secure families through adoption.
Cars4Charities is quite proud that each of these fine California charities has asked us to handle their car donations. The car donation process is easy and the pickup is free. You can donate your car even it no longer runs or is in poor shape. You just need to have a title for your car and it needs to be where the tow truck can easily get to it. In return for your car donation, you will get a valuable tax deduction and a sense of pride knowing you have done a really good thing. For complete details on how to donate car, please go to our website; http://www.cars4charities.org/ or call us toll free at 1-866-4483487.

Donating Your car to a Charity in California

Written by Phil White

A simple and effective way to help out a charity in California is to donate your vehicle. This article will show you the simple steps to the vehicle donation process in California. You will be helping out a great charity of your choice and also receive a tax deduction when the vehicle is sold at auction. But you must use caution when donating a vehicle to a charity.

The First Steps

The entire donating process for the most part is fairly simple. You need to do your research to find a qualified charitable organization that is classified as non-profit so you can receive your tax deduction. Before you






donate a vehicle make sure the charity that you choose is recognized by the Internal Revenue Service, otherwise your tax deduction may be rejected by the IRS. You should always check the IRS's website for additional information and details in regards to certain charitable organizations.

Before turning your vehicle over to a charitable organization, you must first make sure the charity is legitimate, which can easily be done by doing detailed searches and reading various reviews for the charity that you have selected. Then make sure that you will actually receive the said tax deduction for your vehicle donation from a particular charity. Then research the true value of your vehicle so you'll have an idea what it is actually worth. Remember you can only deduct the actual dollar amount that the charity has sold the vehicle for. Also ask the charity a few important questions in regards to how the vehicle proceeds will be used. You will want to know what programs and services will benefit. This very important, as a donor, find out if you are obligated to any additional responsibilities after the donation.

Finding the Right Charitable Organization

The charity that you select should have a good "efficiency rating" so more of the funds are used for the charitable cause and less on administration costs. Before selecting a charity, search for charity rankings, reviews, and recommendations from various well respected organizations. The bottom line to finding the right charitable organization is doing your research first.

Additional Questions Your Need to Ask the Charitable Organization before Donating
Here are some additional questions you need to ask the charity before you donate your vehicle. Does my vehicle have to pass a smog inspection before donating?  Does my vehicle need be in running condition to donate? Does my vehicle have to be registered? Are all donated vehicles sold at an action or used for something else? Will I be charged a towing fee and will there be any other hidden fees? How long before my donated vehicle will be picked up? And most important, will I be notified when the donated vehicle sells at auction? Asking these all-important questions will help eliminate any post donation issues.
Tip: Also ask the charitable organization for a contact phone number in case you receive a notice of a lien sale, infractions or any other legal or DMV actions.

Tax Laws Affecting Your Vehicle Donation

You can get information about tax-exempt organizations, including those eligible to receive tax-deductible charitable contributions, by using "Exempt Organizations Select Check Tool" on the www.IRS.gov website. Once at the IRS website use the search box to find "Exempt Organizations Select Check Tool."

Tip: When a vehicle sold by a charitable organization the donor can only deduct the gross proceeds and nothing more.

If you are claiming $250 but not more than $500 vehicle value, you must obtain documentation from the charitable organization stating the donation date, your vehicle description and the fact that nothing was given to you from the charitable organization in exchange for the donated vehicle. If your deduction exceeds $500, use IRS Tax Form 1098-C and carefully follow the instructions as outlined in the form. For additional donated vehicle tax related information, please refer to IRS Publication 4303, "A Donor's Guide to Car Donations."

Tip: Always consult a certified tax professional in regards to getting the maximum tax deduction from donating your vehicle to a reputable charity.

Notice of Vehicle Ownership Transfer and Canceling Plates and Tags

In regards to properly transferring vehicle ownership to the selected charity, you will need to visit your local DMV or their website for complete details. In regards to surrendering vehicle license plates/tags to your DMV, always check with your local DMV or their website for the current rules and regulations.

Final Thoughts

Remember to do your research before selecting a charitable organization. Beware that there are scams out there. And most important, you are helping to provide valuable services and programs to the less fortunate individuals in your community. Donating your vehicle is a great they to do.