When considering a car donation to charity there are three possible approaches.
- Donate the car to a charity that sells it or has it sold.
- Donate the car to a charity that uses it in its programs.
- Sell the car and donate proceeds.
A few big picture comparisons of the three approaches,
| Topic | Donate Car / Charity Sells | Donate Car / Charity Uses | Sell Car / Donate Proceeds |
| What happens to your car | Typically, sold at auction or for scrap | Used by the charity in its programs | You sell it |
| Sales haircut | Amount less than private sale value that car sells at | Not applicable | Not applicable |
| Dealer percentage | Portion of sales proceeds | Not applicable | Not applicable |
| Hassle cost | Not applicable | Not applicable | You bear the hassle cost |
| Your itemized deduction | Equals what car actually sells for | Equals private sale value of the car | Equals the amount of cash you donate |
Posted in: Car Donations