If you’re looking to get rid of a car, donation might not be top of mind. But with tax deductions up to 11%, donating an old car is a great way to save some money while positively impacting your community.

The process of selling a rusty clunker or your old daily driver can be frustrating. Selling it online or through a third party can take precious time and effort, and dealership trade-ins don’t certify you’re getting a good deal. So, what’s the best way to get rid of a car in Hawaii?

At the

car insurance

comparison super app

Jerry

, we’ve identified donation as a great way to save money and hassle when discarding a vehicle. To get off on the right foot, we've created a complete guide for donation in the Aloha State—from avoiding scams to settling on your favorite charitable organization. We'll finish off with a tip on how to save on your

Hawaii car insurance costs

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How to donate a car in Hawaii

One silver lining of the donation process is simplicity. Hawaii makes it easy for drivers to donate a vehicle. Here’s what the process looks like:

Find an organization. Myriad charities accept cars as donations—and because of this, there’s a fair share of scammers who prey on willing donors. Before settling on an organization, explore what missions you are most passionate about and how you want the vehicle to be used.

Check Pub. 78 data to find out if your organization can accept tax-deductible donations. The IRS has a useful

online search tool

you can utilize.

Collect necessary documents. Just as with selling a car, a donated car will require some documentation. This includes the vehicle’s title, VIN, and information about its current mileage, make, and model.

See how much of a deduction you're eligible for by assessing your car’s market value. Tools like

Kelley Blue Book

can give you an accurate estimate.

Contact the organization to schedule a pick-up. Depending on the charity, this could be as simple as a phone call or completing a donation form.

Keep your receipt. A receipt will be especially useful when filing your taxes. If the organization sells your vehicle, ask for a sales receipt.

How do taxes work when donating a car?

Another great aspect of donating a car is earning a tax deduction. Most organizations will raise money by selling the vehicle you give them. Your deduction will be based on the sales price.

A car that sells for more than $500 qualifies as tax-deductible. But the amount is restricted to the sales price, not the car’s market value. For example, if the vehicle sells for $3,500 but was valued at $4,000, your deduction is still capped at $3,500.

Cars that sell for less than $500 will result in a deduction of $500 or the vehicle's market value. The donor must deduct whichever is less.

You may only deduct the fair market value of your car if the organization keeps the vehicle. Still, know that deductions only apply to charities that accept tax-deductible donations. You’ll see no money back when giving the vehicle to a trade school or mechanic shop.

Specific charities can increase your savings. In Hawaii, donating to the Prostate Cancer Awareness Project will lend you an additional 11% tax deduction.

Key Takeaway To avoid scammers and find a cause you care about, research your charity organization! Thoroughness can help you take advantage of your car’s fair market value, too.

MORE:

What to consider before donating your car

Where to donate a car in Hawaii

If the only thing holding you back is finding an organization, let us help you out. Here are the seven best places to donate a vehicle in Hawaii.

Cars for Prostate Cancer

is run by the Prostate Cancer Awareness Project and has the means to collect cars from anywhere in the nation quickly. Upon donating a vehicle to Cars for Prostate Cancer, Hawaii will grant you an additional 11% tax deduction, on top of what you claim from the sale.

Wheels for Wishes

Run by the Make-A-Wish foundation and delivering proceeds straight to local children,

Wheels for Wishes

is a great option for those hoping to impact someone else’s life directly. This organization makes it easy for you to donate and will accept various vehicles—from

jet skis

RVs

—regardless of how well they run.

Kars4Kids

offers quick and easy pick-up nationwide. The sale of your donation will go straight to supporting education programs near you. Some of the proceeds also benefit the organization's sister program

Oorah

—which assists charities in the Jewish community.

Goodwill

You probably already know Goodwill as the place to support your local community through donations of clothes and furniture—but did you know they take cars, too?

Goodwill Car Donation

accepts a large variety of vehicles, such as

golf carts

and

ATVs.

The proceeds help to fund Goodwill locations and keep your community well-supplied.

Vehicles for Veterans

is a straightforward concept. Offer the organization your car, and they’ll handle the pick-up and paperwork and give you a receipt once the vehicle is sold. All of the proceeds go toward supporting wounded and homeless veterans. Who knew donating your car could help give someone a roof over their head?

Cars2Charities

lets you skip the mediators and your donation helps a wide range of charities. While many organizations use a third party to sell your vehicle, Cars2Charities conducts its sales in-house. This means a quick turnaround on vehicle sales and less hassle for the donor.

Local trade schools

Those interested in having their old vehicle used not sold should consider donating to a trade school. While this option won't lend you any tax deductions, it’ll go toward training the next generation of mechanics.

MORE:

Car loans in Hawaii 2022

How to find affordable car insurance quotes in Hawaii

Now that you’ve successfully donated a car, it’s time to celebrate. Maybe take yourself out to a nice dinner or finally embark on that

road trip

you’ve been planning. Whatever your next destination, protect your current vehicle(s) using

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