If you have a set of unwanted wheels, donating your car to a Texas charity is a convenient way to unload them. We compiled a handy list of some of the best local charities that accept automobile donations.
If you have a car that you no longer need, you’ve probably considered getting rid of it by selling it online or trading it in. Unfortunately, these options can be difficult and confusing, and—if your car doesn’t have a very high value—they’re not always worth the effort.
Donating your car is a fast and simple way to get rid of it while simultaneously helping out your community. Car insurance
comparison super app Jerry
has created this handy guide so you can pick the perfect recipient and avoid scammers (and so you can learn how to reduce your Texas car insurance costs
!). 4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars 4.7/5 app rating | Trusted by 5M+ drivers How to donate a car in Texas
Aside from philanthropy, convenience is the number one reason to donate your old car rather than try to sell it. Here’s all you have to do:
Choose an organization. Car donation is a growing industry, which means there’s also a growing amount of scammers out there. Carefully ensure that the organization you select is reputable by using the IRS’s online search tool
to check Pub. 78 data. Gather your paperwork. You’ll likely just need to donate your car with a signed title, but the recipient may require additional data regarding your car’s make/model and additional specifics.
Determine your car’s value. The state of Texas doesn’t charge an income tax, so they do not allow tax deductions for vehicle contributions. However, you can still file for federal tax deductions! You’ll need to know the actual cash value of your vehicle
when you file your taxes. Arrange for pickup. Believe it or not, you won’t even have to drop off your car to donate it—most charities will pick it up! Simply call or set up an appointment online.
Hold onto your receipt. You’ll need it to claim your tax deduction the next time you file.
How do taxes work when donating a car?
A commonly known benefit of donating your car is the potential tax deduction. The state of Texas doesn’t charge income tax, so they don’t allow tax deductions for donated vehicles. However, you can still qualify for federal tax deductions.
Organizations will typically sell your vehicle to raise funds for their charity, so your federal tax deduction will be based on the amount your car sells for.
There’s a minimum $500 deduction, which means you can claim up to $500 for any car donated, even if the vehicle is sold for less than that amount. All you need is a receipt.
If your car sells for more than $500, you can claim the exact sale price on your taxes. An IRS 1098C form
will be necessary, and if your car sells for over $5,000, you’ll also need to file an IRS 8283 form
. Occasionally, an organization will keep your car, not sell it. In this case, simply claim the fair market value and submit a 1098C form. If the vehicle is valued at over $5,000, an IRS 8283 form will be required, along with a third-party appraisal.
Where to donate a car in Texas
The following organizations are great options for car donors in Texas:
Cars for Prostate Cancer
Cars for Prostate Cancer
is a car donation service run by the Prostate Cancer Awareness Project. They make donating your vehicle incredibly simple—even if you’ve lost your title
or have an expired registration, they’ll pick up your car for free. Service is often available same day! Wheels for Wishes
Support your local Texas Make-A-Wish chapter
by donating your unwanted wheels to Wheels for Wishes
. Make-A-Wish grants wishes to children with life-threatening medical conditions, allowing kids to simply be kids again! Donating a car, motorcycle
, boat
, RV, or other vehicle is fast, free, and easy. Goodwill Car Donations
When you think of Goodwill, you probably think of their secondhand stores. They take secondhand cars, too! They’ll accept running or non-running vehicles of every variety, from cars and SUVs to jet skis
and golf carts. Goodwill Car Donations
provides disadvantaged individuals with job training, employment services, and other critical community-building support. Vehicles for Veterans
Donate your vehicle and give back to disabled veterans via Vehicles for Veterans
. Proceeds fund programs that provide services offered to vets in need of assistance and support. (Among this population, the need for support is greater than ever. Homelessness, disability, and PTSD are prevalent among veteran communities.) Cars2Charities
Most individual charities are unable to process their own car donations, so they hire a company like Cars2Charities
that specializes in accepting and processing vehicle donations. They’ll even take steps to spruce up your old car so that it can sell at the highest price possible. How to find affordable car insurance quotes in Texas
If you’re getting rid of an old vehicle, chances are that you recently acquired a new one. Protect your new ride with quality car insurance.
Jerry
is a trusted insurance comparison app
that shops for low prices with dozens of different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!If you’re hesitant to switch car insurance companies because you’re worried about the work involved, don’t be. Jerry does all the paperwork for you and can even help cancel your old policy!
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