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The Do’s and Don’ts of Donating Your Car to Charity 
 
by Diana Bocco July 06, 2005

The Don’ts

Don’t deduct more than the car’s fair market value. This is not the same as the full  "Blue Book" value of the car.

Don’t forget that you are the one responsible for determining the fair value of the car, taking into consideration the condition and mileage of the vehicle. Or you can check the TMV Used Vehicle Appraiser website, where you are prompted to enter the details of the car and receive a ready-to-print report.

Don’t rush over formalities. If your car is valued over $5000, you need to provide a written appraisal for IRS deductions. Find out all the details before you commit to a donation.

Don’t think donating your car is always the best choice. If you are in the 30 to 40 percent tax bracket, the benefits could be substantial. If, however, your car is not worth much and you're down in the 15 to 20 percent bracket, it may be better to sell the car yourself and pocket the money, rather than expecting a large deduction.

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