What are the three possible approaches?

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,

TopicDonate Car / Charity SellsDonate Car / Charity UsesSell Car / Donate Proceeds
What happens to your carTypically, sold at auction or for scrapUsed by the charity in its programsYou sell it
Sales haircutAmount less than private sale value that car sells at Not applicableNot applicable
Dealer percentagePortion of sales proceedsNot applicableNot applicable
Hassle costNot applicableNot applicableYou bear the hassle cost
Your itemized deductionEquals what car actually sells forEquals private sale value of the carEquals the amount of cash you donate

Posted in: Car Donations