Donate your car
Choose how your car will be used
Many "car donation" programs sell donated vehicles and pass a share of the proceeds to a charity. Free Car Foundation gives donated cars directly to people in need — see how our program works. If you want your car to go to a family, ask the charity directly what happens to donated vehicles.
Questions to ask before you donate
- Will my car be given to a family, or sold?
- If sold, what percentage of the sale goes to the charity?
- Is the organization a registered 501(c)(3)? (Check the IRS Tax Exempt Organization Search)
- Do you use a third-party processor, and what are its fees?
Car donation tax rules
- If the charity sells your car, your deduction is generally limited to the actual sale price
- If the car sells for $500 or less, you can usually deduct its fair market value up to $500
- If the charity uses the car or gives it to a person in need, you may be able to deduct fair market value
- You will need a written acknowledgment (often IRS Form 1098-C) for vehicles worth more than $500
This is general information, not tax advice. See IRS Publication 4303 or speak with a tax professional.
Paperwork checklist
- Sign the title over to the charity — never leave the buyer field blank
- Remove your license plates if your state requires it
- Notify your DMV and cancel your insurance after the transfer
- Keep the receipt and Form 1098-C for your tax records
Read more about the car donation tax deduction.
Frequently asked questions
What is the "$3,000 rule" for cars?
There is no official IRS "$3,000 rule" for car donations. The key IRS thresholds are $500 (deduct fair market value up to $500, or the sale price above that) and $5,000 (a qualified appraisal may be required for non-cash donations over $5,000). Check current IRS guidance.
Do car donation charities actually give cars away?
Some do, many do not. Ask the charity what happens to donated vehicles before you donate.