You can receive a tax deduction in Kentucky when you donate your car and may even qualify for an additional 6% deduction on your state taxes—if your tax bracket allows. Some charity organizations may even accept a donation of a non-running car.

Whether you’ve chosen to buy a new car or you no longer have use for one, you’ll need to make some decisions on how to part with your current vehicle. If you feel that selling the car online seems like a long-term headache, or the

trade-in

value doesn't seem worth it, there’s always the option to donate your car.

To help you answer any questions you may have about donating a car in Kentucky,

car insurance

comparison super app

Jerry

has compiled a how-to guide on donation. We’ll break down the process and provide examples of some reputable charities to which you can give a vehicle you don’t need anymore. Keep reading to find out how to save on your

Kentucky car insurance costs

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How to donate a car in Kentucky

Perhaps one of the best things about donating a car is the convenience factor. Many charities are ready and willing to help make the process easy for you. Let’s look at what you’ll need to do to get the ball rolling on your car donation.

Decide on the charity. You’ll need to do a little online research to familiarize yourself with some charities that accept car donations. It may be best to choose a charity that is well-known and has a solid reputation to avoid scammers.

Take the time to ensure that the charity of your choice accepts tax-deductible vehicle donations. You can look through the IRS’s

Tax Exempt Organization Search Tool

for confirmation.

Gather your information. When you donate a car, you’ll likely need to submit the vehicle’s title, make, model, VIN, and current mileage to the charity.

Know the fair market value of your car. Before you give your car away, it’s important to be aware of how much it’s worth. To check the value, you can visit

Kelley Blue Book’s

website.

Schedule a time for a pickup. Contact the charity you’re donating your car to so that you can organize a time for them to take the car. Most charities that accept car donations are willing to tow your vehicle at no cost.

Make sure you get a receipt from the charity. This will be necessary in order to write off the donation on your taxes. In the event that the charity sells your donated car, be sure to find out how much it sold for—this information is necessary for your tax claim.

How do taxes work when donating a car?

Another attractive prospect to donating your car in Kentucky is the tax deduction you’ll get. Charitable organizations often sell donated cars to raise money for their cause. For this reason, you’ll need to know your car’s sale price, as this will determine your tax deduction.

If the charity sells your vehicle for more than $500, you can write the car off on your taxes—but only for the sale price. If the fair market value of your vehicle was $1,200 and your vehicle sold for $800, you can only claim a tax deduction in the amount of $800.

If your car sells for less than $500, you can claim the $500 or the fair market value—whichever is smaller. Part of why charities accept donated cars is to sell them at a fraction of the price to assist families in need.

If the charity does not sell your car, you can claim the fair market value.

Key Takeaway Make sure you plan out which charity you’re going to donate your car to and get all of your documentation ready. Hold onto your donation receipt for your tax records.

MORE:

What to consider before donating your car

Where to donate a car in Kentucky

If you’re ready to donate your car but are unsure of which organization is the right one, Jerry is at your service! Here are some options for charities in Kentucky that have car donation programs.

Cars for Prostate Cancer

The Prostate Cancer Awareness Project, which helps fund prostate cancer research, has a branch dedicated to car donations called

Cars For Prostate Cancer

. Not only will they pick up your car free of charge, but they also take care of all the IRS paperwork for the donation.

After you donate your vehicle, they’ll mail you all the tax documents you need to write off your car when you file your taxes.

Wheels for Wishes

is part of the nationwide Make-A-Wish® Foundation, which grants the wishes of kids fighting critical illness. Wheels for Wishes accepts car donations in

Kentucky

, and you can find out more about where to donate by visiting their local website or calling their information line at (888) 737-5808.

Goodwill

accepts donations of all kinds, and they’d love to take that old car off your hands whether it’s running or not! You can visit their website or call (855) 534-3830 to get more information on a free pickup. They’ll also handle the tax paperwork for you after you donate.

Kars4Kids

This organization prides itself on providing community-oriented programs for youth. They’ve been around since 1994 and accept over half a million donations a year. You can visit the

Kars4Kids

website to schedule a same-day pick-up for the car you want to donate.

Vehicles for Veterans

There are millions of disabled U.S. veterans who could use support. Thanks to Vehicles for Veterans, they can get the services they need. You can help give back by donating your vehicle—just visit the

Vehicles for Veterans website

and fill out the donation form.

Cars2Charities

is perfect for you if you have a nonprofit organization that’s close to your heart. Since not all charities accept a car donation, you can donate your car to tax-deductible Cars2Charities, which will give the resale earnings to the nonprofit of your choice. You can call them at (855) 520-2100.

MORE:

Car loan in Kentucky 2022

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