, donating is a great way to let it go with few strings attached. If you’ve never donated a vehicle before, however, this may seem easier said than done.

If you’ve already attempted or considered privately

selling your car

trading it in

, you may be feeling pretty unenthusiastic about how much of a lengthy and involved process it can be. Understandably, you might be hesitant to try vehicle donation.

In this article, we’ll address all of your FAQs about donating a car in Michigan so when the time comes, you’ll know exactly what to do—including handling federal and state tax deductions, how to dodge scammers, and what charitable organizations accept car donations in Michigan.

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How to donate a car in Michigan

So you want to donate your car but you're not sure where to start. Surprisingly, donating your car can be a pretty easy way to get it quickly out of sight and mind. Whether you’re in

, or somewhere else, there’s a free pickup car donation program for you.

Here are a few tips and tricks to maximize your results and get rid of your unwanted vehicle.

Figure out where your donation is going. At this initial phase, you may feel overwhelmed by all of the options, so be on extra alert for fraudsters and be sure to steer clear of “charities” without a 501(c)(3) designation.

Ensure your chosen organization accepts tax-deductible contributions by using the IRS’s

select check

tool. This online tool gathers Pub. 78 data so you can determine which organizations are eligible.

Prepare information ahead of time. Usually, your charity will need some basic information about the vehicle including the make, model, VIN, and current mileage. Many charities simplify this process through online donation forms, or you can call to ask questions. In any case, finding and keeping the vehicle title handy is a great start.

Use

Kelley Blue Book’s

online car value portal to check your vehicle's fair market value. Note that if you are going to claim more than a $5,000 deduction, you’ll need to hire a professional appraiser.

Once everything's in order, you can kick back and schedule a pickup. Most charities allow you to conveniently schedule towing appointments online—and some even allow you to track updates throughout the donation process.

Don't forget to keep your receipts. This will make claiming your deductions much easier come tax season.

How do taxes work when donating a car?

When you donate your car to a registered charitable organization, you can expect some sort of tax break. You can use the following information to navigate the sometimes confusing world of federal and state tax deductions.

Federal taxes

If your chosen organization sells your donated car for more than $500, you will claim the amount sold (aka the sale price of the vehicle). Be sure not to confuse the sale price with the vehicle’s fair market value! Your vehicle could be worth much more according to value guides, but the retail price is ultimately the amount you must claim on your taxes.

You can claim fair market value, however, if your vehicle sells for less than $500. Even if your vehicle sells for only $200, you are permitted to claim up to the standard $500 tax deduction.

If the organization makes a “material improvement” to your car, you may also claim fair market value. But this applies to major repairs only (such as engine replacement), so it’s important to know the both condition of your vehicle and the charity’s intentions before finalizing a donation.

State taxes

You may also claim a deduction against your state tax liability. In Michigan, you could receive up to an additional 4.35% deduction depending on your tax bracket.

Remember to keep an eye out for scammers or fraudulent organizations. If you’re looking to write off your car donation, it’s important to investigate your chosen organization’s tax background and philanthropic claims before giving your donation the green light. Online reviews and personal recommendations are also helpful tools to aid in your search.

Key Takeaway You should use online tools to investigate potential organizations to donate to, including researching their legitimacy and tax records.

MORE:

What to consider before donating your car

Where to donate a car in Michigan

Many organizations in Michigan are happy to take your vehicle off your hands. But with so many choices, how do you choose the best car donation program? Here are a few of the best charities and nonprofits that take car donations in your area.

Goodwill

You’re likely familiar with

Goodwill

and know that they take a wide variety of donations, but you may not know they accept car donations. The proceeds from your donated vehicle help Michigan residents procure employment and support local job training initiatives. Use their online

donation portal

to jumpstart the process or call (855) 663-6770.

Cars2Charities

is all about streamlining car donations. Rather than forcing charities into expending all of their time and resources on making in-house repairs, Cars2Charities specializes in fixing, advertising, and selling their donated vehicles on their behalf. In other words, Cars2Charities is not a nonprofit organization, but it helps raise money for nonprofits.

Not only does Cars2Charities strive to produce great results for the charity, but they also want to simplify the process and maximize value for donors. In addition to handling all of the paperwork and arranging the pickup, donors can choose from a variety of

causes

and earn a

vacation voucher

. This organization offers free pick-up for most types of vehicles, so it’s easy to donate whether you’re in

Detroit

Grand Rapids

Prostate Cancer Awareness Project

The Prostate Cancer Awareness Project

(PCAP) uses the sales earnings from donated cars to spread the word about prostate cancer. Your car donation improves public access to prostate wellness education, advocacy, and support. This car donation program offers free towing, and they even accept motorcycles and motorhomes.

To start the Michigan car donation process, fill out the convenient

online donation form

on the PCAP website. If you’d also like to prepare the paperwork in advance, you can refer to the

title information

page for what’s required in the state of Michigan. You will receive a tax-deductible receipt once your vehicle pickup is complete.

Vehicles for Veterans

uses vehicle contributions to fund services and advocacy groups benefiting disabled US veterans. When you give your vehicle to this vehicle donation program, you’re connecting transitioning, homeless, and unemployed veterans to housing and job opportunities, medical care, pension benefits, and more.

Here’s their contact information: 1-877-646-3295. You can also start the

donation process online

. And as long as you complete the donation by December 31, you can claim a tax deduction on this year’s taxes.

Wheels for Wishes

directs the funds from its donated car auctions into benefiting children with life-threatening medical conditions through the Make-A-Wish Foundation. As of February 2022, vehicle donations alone have granted over 12,000 wishes nationwide.

To schedule a pick-up anywhere in Michigan, submit an

online donation form

or call 1-888-737-5808. Under normal circumstances, you can expect a tow truck to arrive within 24 hours.

Please do your own research before you pick a recipient. Legitimate organizations should be registered with the Michigan Department of the Attorney General’s database. If you need a tax receipt, make sure that you pick a charitable organization.

MORE:

How to register a car in Michigan

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