With Most Car Donation Programs:
Donors Get Wholesale Sales Price As Deduction
All vehicle donations made to IRS approved charitable organizations are tax deductible. Most charities soliciting car donations do not use those vehicles in carrying out their mission. They take donated cars, contract with a third party to sell them (a wholesale/auction transaction) and receive a portion of the proceeds to fund their organization. The actual sale price (in the wholesale market) of the donated car is reported back to the donor as the value of the tax deduction for IRS purposes.
Donors Can Get Fair Market Value As Deduction
At Wheels4Hope many of the vehicles donated to us are good condition and are repaired and placed as program cars – this is our mission! When this happens, the donor is able to claim a tax deduction equal to the fair market value of the car. This can mean a deduction worth hundreds or even thousands more than if you were to donate your vehicle to another program. Cars that are in good condition, but not used as program cars, are repaired and sold in a retail setting – also bringing fair market value to the donor as a tax deduction.
There are some cars that we are not able to repair. These cars are sold to area dealers or salvage companies so that they can be recycled (parts and scrap metal) with the proceeds used to support our mission.
In all cases, Wheels4Hope will provide you with official documentation needed for filing your tax deduction. For more information, please refer to IRS Publication 4303: “A Donor’s Guide to Vehicle Donations”.