Best Car Donation Companies for 2023

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Editor's pick
Charity Motors

Charity Motors

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Call Now! (888) 908-2277

Editor's Take

Charity Motors has a nationwide network of tow truck specialists that accept all donated vehicles, regardless of whether or not they’re running. The organization benefits charities in a number of ways, from providing financial gifts to providing transportation assistance to low-income people. Once they sell your car, you can even choose the charity or church that receives the donation.

You’ll also receive the full fair market value tax deduction when you donate through Charity Motors. In fact, the company is a 501(c)(3) non-profit organization that has donated over $114 million over the last 20 years.

Key Features

  • Free towing
    Yes
  • Online form
    Yes
  • % Given to Charity
    Not disclosed

Details

  • Choose your recipient charity
  • 50% subsidy for low income car buyers
  • Accepts boats, RVs, campers, and more

User Reviews

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Car Donation Wizard

Car Donation Wizard

0 Review(s)

Call Now! (877) 957-2277

Editor's Take

Car Donation Wizard is unique in that the first step is to pick a non-profit organization you’d like to benefit from your donation. You can then fill out a donation form either on the phone or online and schedule a pickup time. Car Donation Wizard can facilitate pick ups across the entire nation.

Key Features

  • Free towing
    Yes
  • Online form
    Yes
  • % Given to Charity
    75-80%

Details

  • Donate your car, truck, boat, watercraft, RV, motorhomes, and more
  • Vehicle doesn’t have to be running
  • Choose your charity

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One Car, One Difference

One Car, One Difference

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Call Now! (877) 557-1227

Editor's Take

With One Car, One Difference, simply select your vehicle type and the organization you’d like to support with your donation. Once your vehicle has been picked up, you’ll get a tax receipt to use for your deduction.

Key Features

  • Free towing
    Yes
  • Online form
    Yes
  • % Given to Charity
    80%

Details

  • Cars, trucks, boats, motorcycles, and more accepted
  • Damaged and broken vehicles also ok
  • Can view details state by state

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What Happens to Your Car

There are a few ways that a car donation company can handle donated vehicles and may be a deciding factor for you when choosing which one to work with. For cars that are in good working condition, they may be used by non-profit organizations that need vehicles to implement their programs. Alternatively, the car may be sold at an auction, with the proceeds going to the designated charity.

It’s important to make sure you choose a reputable car donation service, especially if you want to make sure your vehicle is doing some good.

Check the percentage of proceeds from your car that are actually distributed to charities.

There are companies that will pick up your car for free but aren’t clear about what happens next. They may sell your car, but not actually put the money towards charitable use. If you truly want to donate your vehicle in order to have a positive impact on a non-profit organization, you need to research companies well to ensure those expectations are met.

Why Donate Your Car

Not only does a car donation help charity, it also provides you with a few benefits as the owner. The biggest financial perk is that you can take a tax deduction on the fair market value of the vehicle, which can lower your tax obligation for the year. There are a few technical rules you need to follow in order to properly take this deduction, so dig in deeper with your research or consult a tax professional to help.

Here are a few technical details to look at before donation your car:

  • Sales over $500 are subject to different tax documentation
  • Check state laws for title tr

Another reason to use a car donation company is for the free pick-up, especially if you’re getting rid of your car because it’s not working well or not at all. The catch, however, is that you have to subtract the value of the tow fee from the market value of the car when claiming a tax deduction.

Frequently Asked Questions

Can you donate a car that doesn’t run?

It depends on the car donation company you use, but in most cases, they’ll still pick up your vehicle for free.

Can you donate to a friend?

You can sign the title of your vehicle to a friend, but you can’t use it as a tax deduction in this situation. Check with your state’s specific laws on the correct process for transferring ownership to a friend.

What if you have an expired registration?

You typically can donate a car with an expired registration; however, this is another area where details of the law and the process vary by state. Check with your DMV to find out how to do this legally.

Find the best car donation company for your vehicle!

Make the biggest impact by donating your car today.

Call Now! (888) 908-2277

with our top pick Charity Motors

by Lauren Ward

Personal Finance Writer

Lauren Ward is a personal finance writer with nearly ten years of experience covering topics like loans, credit, and real estate. She lives in Virginia with her husband and three children.

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