Infographic: Car Maintenance Checklist

Start the new year fresh with this car maintenance checklist! Our general service schedule is easy to follow based on month intervals and focuses on what items need to be checked and when.

Not only does routine auto care and preventative maintenance help keep your car safe and dependable, but it helps save money and aggravation. This infographic helps you understand what items should be inspected, either by you or your mechanic, to determine if there is a maintenance need before it becomes a bigger problem.

Learn more about these maintenance items here, or in our free Car Care Guide. Remember, this is a general service schedule and every vehicle is different. Consult your owner’s manual for specific maintenance intervals.

Best Car Donation Tips To Save You Money On Your Taxes

In the United States it's possible to donate a vehicle (usually a car, but it can be a boat or any other form of transportation) to certain charities, and in return be able to claim a tax deduction on your personal income tax return. A car donation may be accepted on the condition that the vehicle doesn't have to run but should be in towing condition. A charitable car donation may be worth more than a trade-in.

The new rules allow the donor to deduct only the amount the charity receives for the vehicle. Charities usually provide you with a release of liability when they take your vehicle, and after the car sells, they send you a tax-deduction form that explains how much they received for your car. There have been car donors who needed a new vehicle and they ended up buying donated and repaired vehicles.

You may have an old vehicle sitting on your property or on the street that you don't use very often. Make sure you have the title in hand if you call in your donation. 

You can usually donate a sad-looking car that's not running, depending on the charity. The donor benefits from the donation by receiving a tax receipt for the highest possible value of the vehicle. It's good to know that when you donate a car, you'll get it off your property within just a couple of days, freeing up space in the garage, in the driveway or even your yard.

Your vehicle has to have all four of the tires inflated in order to be accepted. By donating a car it can eliminate spending money on repairs, advertising fees and the problems or liabilities associated with selling a vehicle. In some cases charitable car donors can still claim fair market value for their used vehicle.

If your automobile, truck, boat, motorcycle, RV or aircraft is no longer of use to you, it can still go a long way toward supporting the charity of your choice. Make sure to fill out the forms the charity representative gives you and have them ready for the driver when he comes to pick up the car. No need to pay for advertising, no loss of privacy and possible security risk, and no need to pay for vehicle registration, insurance, and repairs to keep your car in running condition while you wait for a buyer.

Also, if your car is running, consider dropping it off with the charity yourself to save the organization from paying for towing costs. For states that require smog certificates or safety inspection certificates, you can donate your vehicle without these documents. And some cars may not qualify for the tax exemption because of the condition they're in. 

There are a few exceptions in the new 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 sells 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. Some charities have the capability to repair or perform maintenance and get a donated vehicle ready for sale. A vehicle donation is allowed if you itemize your income tax return. 

Whether it's the law in your state or not it's a good idea to protect yourself by having proper insurance coverage on your vehicle until it's donated. One of the exceptions to the new IRS regulations allows donors to still deduct the fair market value of their vehicle, provided the charity materially improves the vehicle. 

If you donate a car you can get a tax break and help your community at the same time. Major charity car donation programs include: Kidney Foundation Car Donation Program, Target and Goodwill Industries. Whatever the case, your car donation, like any charitable donation, will get you a good tax deduction, will go to help someone in need and it'll make you feel good that you were able to help in some way.

Car Donation Tips

• Sign the title directly over to the charity or their Agent.
• All States have very clear regulations about transfer of ownership for vehicles.
• Do Not Under Any Cirucumstances Leave The ‘Buyer’ Section Of The Title Blank. By leaving the title blank you allow anyone to transfer the title directly from you to the ‘next’ buyer. There are two consequences of this oversight.
  1. The donor can remain liable for the vehicle. Liable to the buyer or possibly liable for the actions of the buyer (if the vehicle is never correctly transferred)
  2. The charity might not get any credit for the donation. By signing directly to the charity or their legal contractual agent, you make it much more likely that the vehicle will actually be used for the charitable purpose you designate.
• Complete the BUYER section of the title by filling in the name of the charity or their agent. And sign the title exactly the way your name appears on the document.
• Ask How the Vehicle Will Be handled. You’ll want to know that the vehicle will be picked up and transported by properly licensed and insured towing companies and that the legal transfer of the vehicle will be handled by a licensed dealer contracted by the charity or in some cases under the charity’s own vehicle license.
If you have questions about DonationWizard.com and our relationships with our charity partners, please contact Joe Hearn, President of Advanced Remarketing Services at 877-709-2277 or jhearn@arscars.com

How to donate a car or boat to charity

Not necessarily. As the saying goes, the road to h-e-double-hockey-sticks is paved with good intentions, and it can be surprisingly easy to fumble this well-meaning act.

Before you hand one of your biggest assets over to anyone, read the following tips to be sure you’re making the right moves.

1. Avoid middlemen. Numerous for-profit intermediary organizations advertise aggressively on TV, billboards and elsewhere, offering to help you donate your vehicle to charity. Here’s the catch: These organizations typically keep about 50 percent to 90 percent of the vehicle’s value for themselves, and the charities don’t get what they could have gotten. To prevent this, check directly with charities you admire and find out whether they accept car or boat donations.

2. Find a worthy charity. If the charities you normally support aren’t equipped to accept such donations, do some homework until you find a reputable charity that is. You can research charities’ track records online at this Better Business Bureau site and through Charity Navigator.

3. Check the math. If you still feel compelled to use an intermediary organization – possibly because you’re busy – at least ask the organization how much of the car or boat’s value will go to charity. If the organization simply gives charities flat fees — say, $100 for a used vehicle regardless of its value, or $2,000 a month — your donation may not be eligible for a tax deduction.

4. Know the status of your recipient. In order for you to qualify for a deduction, the charity that gets your donation must be an IRS-approved 501(c)(3) organization. Your church, synagogue, mosque or temple likely qualifies. (Check first just to make sure.) You also can visit the Internal Revenue Service’s Web site and search for Publication 78 to find other qualifying non-profit organizations. (Just type “78” into the search field on the IRS home page and you’ll be directed to the right publication.)

5. Do the delivery yourself. Once you’ve identified a worthy charity, recognize that it will have to pay someone to pick up your car or boat for you. To help the charity maximize the benefit of your donation, drop the car or boat off yourself.

6. Transfer the vehicle with care. Want to eliminate all risk of running up parking tickets and other violations after you’ve said goodbye to your donated vehicle? Then formally re-title the vehicle to the charity, and report the transfer to your state’s department of motor vehicles or licensing. Never agree to leave the ownership space on the charity donation papers blank.

7. Your estimate of the donation’s value probably won’t cut it. If your car or boat is worth more than $500, the IRS is going to want to see evidence of how much the charity got for it. (Most charities that accept these donations turn around and sell them for cash.) You’ll need to get a receipt from the charity revealing exactly how much money it made.

8. Know when you can report the fair market value. You won’t need evidence of the sales price if the charity keeps the vehicle or vessel and uses it in its charitable work, or if your donation is worth less than $500. Then you can report its fair market value based on listings from Kelley Blue Book and similar sources.

9. Keep a thorough paper trail. If your donation is worth more than $500, you’ll have to attach IRS Form 8283 to your tax return. If it’s worth more than $5,000, your documentation must include an outside appraisal. You’ll also need proof of the donation, such as a receipt from the charity and a copy of the title change.

10. Be detail-oriented. This paper trail may seem cumbersome, but think about it: This may be one of the biggest charitable donations you ever make. By taking the time to dot the i’s, you can make sure that the charity gets the most benefit and you get the biggest possible deduction.

Sources and resources

• Charity Navigator
• Better Business Bureau
• Consumer Reports Money Adviser
• Internal Revenue Service

Does It Make Financial Sense To Donate a Car to a Charity?

It's easy to donate a car to charity if all you want to do is get rid of it. Simply call a charity that accepts old vehicles, and it will tow your heap away.

If you want to maximize the benefits for both the charity and yourself, however, it's more complicated. Until 2005, it was easy for taxpayers to deduct the entire "fair market value" of a donated vehicle from their taxable income, reducing the taxes they'd have to pay to the Internal Revenue Service. (The IRS defines fair market value as "the price a willing buyer would pay and a willing seller would accept for the vehicle, when neither party is compelled to buy or sell and both parties have reasonable knowledge of the relevant facts.")

Allowing taxpayers to deduct the full fair market value for all those donated vehicles cost the IRS a lot of dollars, however, so the agency tightened the rules. Today, you can only deduct a vehicle's fair market value under very specific conditions. We're going to walk you through those conditions, with the usual proviso that you should discuss these issues with your tax preparer before you act. Also note that if your state or locality also levies income taxes, other rules may also apply.

You Must Itemize Your Return

If you want to claim fair market value for your car donation to reduce your federal income taxes, you must itemize deductions, says Twila D. Midwood, an enrolled agent based in Rockledge, Florida. An enrolled agentis a tax expert who can represent clients before the IRS.

If you've always filed 1040EZ tax returns and you plan to keep filing them, you won't be able to deduct any amount for the car donation. You can file a regular 1040 tax form and itemize, even if the donated auto is your only deduction. That's usually not the best choice, however, unless you like paying a lot more taxes to the IRS than you must.

"For tax purposes, because a donation is a deduction from your income, the tax benefit relates to your tax bracket," Midwood says. "It's not a dollar-for-dollar item."

Here's the math: Suppose you are in the 28 percent tax bracket. Your donated car's value, and thus the deduction, is $1,000. "The $1,000 deduction will save you $280," Midwood says. If you're in the 15 percent tax bracket and you donate a car worth $1,000, it will only reduce your taxes by $150.

If instead you take the standard deduction, which in 2012 was $5,950 for a single individual or $11,900 for a married couple filing together, you save thousands of dollars over filing an itemized return only for the purposes of detailing your car donation.

The only way that donating a car nets you any tax benefit is if you have many deductions, and if their total sum, including the car, exceeds your standard deduction.

The Charity Must Qualify

Your city councilman's campaign organization and your hobby club may be nonprofit organizations, but donating a car to them won't give you any tax benefits. Only "qualified" charities can provide those for you. A qualified charity is one that has been approved by the IRS as an "exempt-status" or 501(c)(3) organization, Midwood says. Most organizations will state in their advertising or receipts that they're a 501(c)(3) if indeed they are one, she says. "If you're not sure, ask."

Religious organizations are a special case. They do count as qualified organizations, but they aren't required to file for 501(c)(3) status.

To help you determine whether a charity is qualified, the easiest thing to do is visit the IRS's exempt organizations site.

You also can call an IRS toll-free number: (877) 829-5500. If you do this, you'll have to listen to some recorded information about tax forms that probably don't apply to you. You'll then be given the option to "Press 2" to talk to a customer service rep about exempt organizations. Note that the waits can be quite long: up to 30 minutes.

You can always donate as much as you want to charities, but the IRS limits how much you can claim on your tax return. "Charitable donations can't exceed 50 percent of your gross income," Midwood says.

How To Deduct Fair Market Value 

These are the four IRS rules under which you can get the maximum deduction (the fair market value) of a donated car:

1. When a charity auctions your car for $500 or less, you can claim either the fair market value or $500, whichever is less.

2. When the charity intends to make a "significant intervening use of the vehicle." This means the charity will use the car in its work, such as delivering meals to needy people.

3. When the charity intends to make a "material improvement" to the vehicle, which is "anything that increases the car's value and prolongs its life," Midwood says. "It can't be a minor repair or maintenance; it must be something like fixing the engine or systems that run the car," she says.

4. When the charity gives or sells the vehicle to a needy individual at a price significantly below fair market value, and the gift or sale is part of the charity's mission of helping the needy who need transportation.

How To Determine Fair Market Value 

To recap, the IRS defines fair market value as the price a willing buyer would pay and a willing seller would accept for the vehicle, when neither party is compelled to buy or sell and both parties have reasonable knowledge of the relevant facts. Neither the buyer nor the seller can be an auto dealer. Both must be private parties.

Edmunds.com makes it easy to determine your vehicle's fair market value. And, as Midwood says, your assessment has to be "an apples-to-apples comparison."

IRS Publication 4303 explains this in more detail: "If you use a vehicle pricing guide to determine fair market value, be sure that the sales price listed is for a vehicle that is the same make, model and year, sold in the same condition, and with the same or substantially similar options or accessories as your vehicle."

Here's an example: Let's say your car is a 2003 Honda Accord DX sedan (the lowest trim level). It has 200,000 miles and it's in "average" condition. Edmunds estimates it would be worth $1,862 in a private-party sale in Southern California. You can't instead claim the $5,318 private-party value of a Honda Accord EX sedan (a much higher trim level) with 100,000 miles in "clean condition" (a condition grade that's one step up from "average").

Getting Fair Market Value Is Rare

It's not realistic to expect that your car will meet one of the most stringent fair market value requirements. Take it from 1-800-Charity Cars, which says it is the largest car donation charity in the United States. It picks up donated vehicles from across the country and gives as many of the cars as possible to people who need transportation. According to the charity, few donated cars are suitable to give to the people it serves.

"If 5 percent go to our clients, I'm thrilled," says CEO Brian Menzies. "Although we take any car, about one-third go straight to salvage, i.e., junk." The rest are auctioned and the proceeds go to the charity of the donor's choice, he says.

The point that Menzies is making is this: Unless your car is in good or excellent condition, it will most likely be sold at auction or to an auto salvage yard. In that case, your deduction is based on the car's selling price, not your fair market value estimate.

Note that this price is not something you'll know when you donate the vehicle. "An organization has up to three years to sell the vehicle," Midwood says. "If they sell the vehicle within three years, they must notify the IRS and the donor."

If the April tax deadline is approaching and the charity still hasn't sent you a notification of your vehicle's sale, such as an acknowledgement, receipt or form 1098-C, you have two options.

Paperwork Is Important

According to IRS Publication 526, the first option is to file Form 4868 to request an automatic six-month extension of time to submit your return. Your second option is to file the return on time without claiming the deduction for the qualified vehicle. When the charity finally sends your notification, you can file an amended return using form 1040X to claim the deduction. You'll have to attach a copy of the notification to your 1040X.

Getting tax benefits for a donated car requires a lot of documentation, whether the car is junked, sold at auction or given to a charity's client. IRS Publication 4303 has all the details. One tip: Keep all the papers or electronic files. You'll need them at tax time.

Another Approach to Car "Donation"

Besides giving your car directly to a charity, there is another way your vehicle can help a charity and also maximize your tax benefits: You can sell the vehicle yourself and donate the proceeds.

"If the qualified organization is going to sell the vehicle in order to receive cash, then it would make sense for an individual to sell the vehicle to a private party to maximize the amount of cash proceeds," Midwood says.

"Privately selling the vehicle might generate larger cash proceeds than if the organization were to sell the vehicle, she says. "The donor would then make a cash contribution to the organization."

Selling any car can be a hassle and selling one that's on its last legs poses challenges of its own. How you proceed depends on your goal. Are you focused on getting rid of a junker with minimum effort and you'd look at the tax deduction as a nice bonus? Then donating your car makes good sense.

If your goal is to maximize your tax deduction, carefully review the steps here and then make your decision. Whatever you decide to do, parting with your old car could help a nonprofit carry out its mission. And it also might make room in your garage for a new car.

Tips for Choosing the Best Car Donation Program

There are hundreds of car donation programs on the internet making heartfelt appeals for vehicles, but only a small number of these programs actually make a difference to the charity.Car Donation Wizard wants you to know that we know that you have choices and we are happy to offer complete clarity on where your car donation is going, who it's helping, and how it's going to get there. Call us anytime at (877) 957-2277 for more information or to donate a car to one of our amazing nonprofit partners today.

TIPS BEFORE YOU DONATE A CAR TO CHARITY:

• Make sure the charity is an organization that you know and trust. There are thousands of organizations that accept car donations. Before you choose to donate, remember that all charities are not created equal. Look for an organization whose work you recognize as benefiting the community or the world. Be concerned about “charities” that have cute-sounding names or might sound similar to a charity you know (for example, Habitat for Humans instead of Habitat for Humanity).
• Ask how much the charity will receive. The charity has a responsibility to best manage your vehicle donation. Ask how much of the gross proceeds will go back to the charity after you donate a car to them. If the organization will only list the percentage of net proceeds, then your car donation could be largely wasted. Several published reports have clearly established that most car donation programs return between 15 and 35% of the gross back to the charity, but they report it as 50 to 70% of the net. This could be the difference between the charity of your choice receiving $1,000 or $150 for your car donation.
  
  Car Donation Wizard returns between 75% and 80% of the GROSS from each auto donation back to the charity.
• Once you've decided to donate a car to charity, sign the title directly over to the charity or their agent. All states have very clear regulations about transfer of ownership for vehicles. DO NOT, UNDER ANY CIRUCUMSTANCES, LEAVE THE ‘BUYER’ SECTION OF THE TITLE BLANK. By leaving the title blank, you allow anyone to transfer the title directly from you to the next buyer. There are two consequences of this oversight.
  1. The donor can remain liable for the vehicle. This means liable to the buyer and possibly liable for the actions of the buyer if the vehicle is never correctly transferred.
  2. The charity might not receive any credit for the vehicle donation. By signing directly to the charity or their legal contractual agent, you make it much more likely that the vehicle will actually be used for the charitable purpose that you designate.
• Ask how your car donation will be handled. You'll want to know that the vehicle will be picked up and transported by properly licensed and insured towing companies and that the legal transfer of the donated vehicle will be handled by a licensed dealer contracted by the charity.
• Ask how and where the money will be spent. This question should be easily answered. You should search for the charity or agency that makes the best use of the funds from your auto donation. BEWARE of charity car donation programs that promise to send proceeds to any organization without having a direct relationship. All charities are not created equal, and all car donation programs are not run with the same attention to donor wishes.

Guide To Donating Your Car

At Charity Navigator, our primary purpose is helping America's donors make informed giving decisions when they part with their hard-earned dollars by writing a check to charity. In recent years, however, more and more donors are attempting to help themselves, and help others, by donating their used automobiles to charity. This has become a massive business. In the year 2000, nearly ¾'s of a million people took a car donation deduction on their federal tax returns, thusly lowering their taxes by over $650 million.

As America's car donation system is currently construed, it is easy for donors to benefit greatly by donating their cars, albeit with a little risk. By following these 10 Charity Navigator Tips For Charitable Auto Donations, you can minimize that risk, and maximize the amount that actually gets to charity.

1. Find a Charity That Directly Accepts Car Donations

If at all possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car's value for their troubles (other, less scrupulous entities keep 90%, or even more). If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It's possible that the charities you already support have a car-donation program that you don't know about. Check with them first.

2. If Your Charity Doesn't Accept Cars, Take the Time to Find a Charity That Does, and Still Does Work You Respect

Remember that you're still making a charitable donation, and don't simply give your automobile away to any charity, just because they're a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.

3. If It Runs, Drive the Car to the Charity

Worthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization's programs. If you can get the car to them yourself, do it.

4. If You Have to Use a Intermediary Agency, Research the Percentage that Gets to Charity

The IRS does not require the car donation agencies to contribute a set amount of the auto's proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give. The charities are reluctant to criticize the middlemen, because they don't want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit middlemen, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.

5. Make Sure Your Intended Organization is a 501 (c) (3)

While many organizations can claim non-profit status, donations to 501 (c) (4) organizations are generally not tax-deductible. These are political organizations with permission to lobby our government; like Disabled American Veterans or the National Rifle Association. Make sure your intended recipient has 501 (c) (3) public charity status.

6. Transfer the Car Correctly to the Charity

Some charities will ask you to leave the assignment of ownership space on the charity donation papers blank, so they don't have to re-title the auto. If your charity asks this of you, find another charity. If you don't formally sign your car over to the designated nonprofit, you will be held responsible for any parking tickets that are subsequently incurred, or liable if it's used in a crime. Remember, the charity you give the car to will probably not use your car to deliver meals to the needy, but will simply sell it as quickly as possible. When someone buys it from them at auction and doesn't bother to register that car, it's still yours in the eyes of the law.

7. Value Your Car Correctly

With to the proliferation of car donations, the IRS became increasingly concerned about how taxpayers valued the vehicles they donated to charity. Not only did the agency increase heir audits in this area, but it also advocated for changes to the laws that govern such deductions.  It succeeded with the passage of the American Jobs Creation Act of 2004 which prevented taxpayers from simply deducting the published fair market value of vehicles worth more than $500. Instead, the deduction is determined once a car is sold and the charity sends the donor a receipt indicating the exact amount the car garnered at auction.

8. Complete Your Paperwork

Non-cash donations are the most common triggers of audits, so it is imortant to keep thorough documentation of a car donation. Specifically, if your car is valued over $250, then you need to obtain and retain a written acknowledgement from the charity. Additionally, if your car is worth more than $500, you must complete section A of the IRS Form 8283 and attach it to your yearly taxes. Furthermore, if your car is worth over $5,000, then you must have an independent approaisal and fill out section B of IRS Form 8283.

9. Use Fair Market Value (FMV) for the Car

There are several exceptions which allow you to use the Kelley Blue Book or a NADA guide, but you must use the FMV, not simply the highest value listed for the year and make of your car. Use the FMV when:

• instead of selling the vehicle, the charity keeps and uses it,
• the charity makes improvements to the car before selling it,
• your car is sold at a discounted price to a person with a low income,
• or if the car is worth less than $500.

Otherwise, you can only deduct the amount that the charity sells the car for at auction as indicated on the written receipt the charity sends you.

10. Take the Time to Get It Right

It is true that the biggest winner in the car donation game is usually the donor, and not the charity recipient. But if you take your time, ignore the quick and easy television appeals, and find a reputable, high-performing charity that will make the most of your donation, we can all emerge victorious.

For more information, please see IRS Publication 4303, A Donor's Guide to Vehicle Donations.

Tips for Donating a Car to Charity

A charity that uses a donated vehicle for transportation or hauling goods obviously benefits directly from such a donation. However, in many cases donated cars will be sold en masse, either by the charity itself or by a dealer to raise funds for the charity. In the case of a dealer, the charity generally receives a flat fee per car, sometimes as little as $45 per car.

Listed below are tips for donors who would like to donate a car to charity. Beware that the donor's tax deductions for car donations may be limited to the price at which the charity sold the car.

• To receive the maximum tax deduction on your car donation, and to receive the satisfaction that the full value of the car benefits a charitable purpose, give it to a charity that will use the vehicle in its operations or will give it to a person in need. Otherwise, your tax deduction will not be based on the fair market value, but will be limited to the amount of money the charity receives from the sale of your car. If the charity you are donating to does sell the vehicle, ask what percentage of the proceeds they receive. See Car Donations: Taking Taxpayers for a Ride for more.
• Ask if the charity accepts car donations directly, without involving a third party. If possible, drive the vehicle to the charity instead of using a towing or pickup service. This will allow the charity to keep the full amount of any proceeds from selling the car.
• Make sure the charity is eligible to receive tax deductible contributions. Ask for a copy for your records of the organization’s IRS letter of determination which verifies its tax exempt status.
• Be sure that you get a receipt from the charity for your car donation.
• Be aware that non-cash donations are one of the most common triggers to an audit by the IRS, so you’ll want to document the value of the car and keep records of it.
• If the car is worth more than $500, the donor must complete Section A of IRS Form 8283 and attach it to their tax return. Donors are required to file with his/her tax return a written acknowledgement from the charity. If the charity sells the car, the charity must provide the donor with a certification that the car was sold at "arms length" between unrelated parties and the sale price of the car within 30 days. In this case, the donor's tax deductions will be limited to the total amount the charity sold the car for. If the charity does not sell the car, it must provide the donor with a receipt within 30 days of the contribution. The charity may also be required to provide certification to the donor stating how it plans to use or improve the car and stating that it promises not to sell or transfer the car. Penalties are imposed on charities that provide fraudulent acknowledgements to donors.
• If the car is worth $5,000 or more, an independent appraisal is necessary. The donor must also fill out Section B of IRS Form 8283. For cars worth less than $5,000, use the Kelley Blue Book, the Hearst Black Book, or a guide from the National Auto Dealers Association (NADA) to determine the market value. Make sure you use the correct figure for the date, mileage, and condition of your car. Picking the highest figure for your car model and year without taking into account other factors may not pass muster with the IRS.
• Take pictures of the car and save receipts for new tires or other upgrades to verify its value.
• Remember, it is the donor, not the charity, who is obligated to value the car and who will pay the penalties if an IRS challenge finds your figure inaccurate.