Donate Car to Charity - %50 Limit Charity

If you do donate car to charity, make sure the car charity is %50 limit organization. We know donors only can deduct (total contribution)%50 of  adjusted annual gross income and they can deduct the remainder from next year tax return (Carry Over). Also donors only can deduct %50, if they donate car to charity which is %50 limit organization otherwise %20, %30 would apply. You can easily ask charities about their limit. According to government only following types of charities are %50 limit organizations.

1) Churches and associations.
2) Educational Charities.
3) Hospitals
4) Organizations which normally receive support from USA, States, their political subdivisions or public.
5) The United States, States, District of Columbia, Puerto Rico, A Political Subdivisions, Indians Tribal and subdivisions.
6) Organizations which operated for charitable, religious, educational, scientific, literary, preventing cruelty to children or animals, fostering national or international amateur sports competition  purposes.
7) Organizations which operate for benefit of organizations described above 1 through 6.
8) Private operating foundations.

Therefore if you donate car to charity described above, your car donation  to charity up to %50 of your gross income is tax deductible. You need to be clear and precise on car charity donating steps. If you donate vehicle to charity like local hospital for use of hospital (in this case you can donate truck, donate used car, ambulance...) not for fair market value (capital gain) then %20 limit applies.

It means you can only deduct your charitable automobile donations to %20 of your gross income, if the value exceeds %20 of gross  income, the excess carry overs to next year tax return, if not you can deduct all of it. Anyway this year or next year, you'll get whole value of your donate car to charity deducted. For more details about Carryovers, you can go to charity car donation .


Maybe you donate car to charity for contribution base intention but secular charities which only think about fulling their pocket don't care and could waste your tangible and intangible donation benefits. maybe donate cars charity provides you disqualified document for value of your charity automobile and cause you penalties.

So donate car to charity with caution, get some information before giving charity cars to them. Ask about their limit, process of cashing donated cars, do they go through car auctions or sell to general public or use charity car. The organization, you going to donate your used automobile to, is  fund-raiser and how much is charity commission.