Tax benefits of your car donation

Yes. Habitat for Humanity is a 501(c)(3) nonprofit organization. Contributions, including vehicle donations, may be claimed as deductions on your federal tax return, if you itemize.

Once your vehicle is sold, the selling price determines the amount of your donation. If your vehicle sells for more than $500, you may deduct the full selling price. If your vehicle sells for $500 or less, you can deduct the “fair market value” of your vehicle, up to $500.

The following websites can help you calculate your vehicle’s fair market value.

• Kelley Blue Book
• Edmunds
• NADA Guides

Within 30 days of the sale of your vehicle, Habitat will send you a written acknowledgement/receipt. This receipt will include:

• The gross selling price of the vehicle, if it sold for greater than $500.
• Year, make, model and vehicle identification number information.
• A statement that the vehicle was sold at arms-length between two unrelated parties.
• A statement that no goods or services were received in return for your contribution.

You can learn more by reviewing the IRS documents below or by consulting with your tax adviser.

• Publication 4303, A donor’s guide to vehicle donations (147kb .pdf)
• Publication 526, Charitable contributions (1.2mb .pdf)
• Publication 561, Determining the value of donated property (1mb .pdf)
• Form 8283, Noncash charitable contributions (256kb .pdf)
• Form 8283, Instructions (63kb .pdf)