If you own a vehicle that you no longer need, there are plenty of Minnesota nonprofits that accept vehicle donations—and as an added bonus, it could also get you a tax deduction!

Selling a car yourself can be a tedious process, and sometimes trading a vehicle in doesn’t seem worth the extra effort, either. But that doesn’t mean you have to let your unused vehicle rust in your driveway. There are plenty of organizations statewide that could happily take it off your hands! It doesn’t have to be your standard motor vehicle, either—some organizations will take motorcycles, boats, campers, and even jet skis.

Here’s what you should know about Minnesota car donation, including what you can expect from the process and a list of area nonprofits that accept vehicle donations.

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How to donate a car in Minnesota

More often than not, donating a car to a charity is a relatively straightforward process, which can make it a more convenient option than selling the car yourself.

Here’s a brief overview of how the vehicle donation process typically works:

Pick the right organization for your donation. Finding a cause you’re passionate about is always ideal, but you’ll also need to be wary of scammers hoping to capitalize on your good intentions. Once you have an organization in mind, find out what types of vehicles they accept.

Check the organization’s tax-exempt status. Generally speaking, donations to tax-exempt organizations under section 501(c)(3) are usually tax-deductible. You can use the

IRS’s tax-exempt organization search tool

to see if the organization you have in mind falls under this category.

Collect your documents. When donating a vehicle, you’ll want to make sure your title is transferred out of your name so you don’t have to worry about incidents (like driving violations) that aren’t yours getting sent to you after the fact. In addition to a signed title, you might also need to provide information about the vehicle’s make, model, vehicle identification number (VIN), and current mileage.

Find out your car’s fair market value. This will be important when it comes to determining the size of your tax deduction.

Kelley Blue Book

can be a useful resource, but if your vehicle is worth more than $5,000, you’ll need to have a qualified written appraisal to deduct the donation from your taxes.

Arrange a pickup time. Contact your organization or fill out their online donation form to arrange the details for how your vehicle can be picked up or dropped off. Many organizations can accommodate unattended, free pickups via tow truck—often within a matter of just a few business days—so you don’t have to worry about transporting the vehicle yourself.

Keep your donation receipts! You’ll need to have a record of your donation to claim a tax deduction. If the charity sells your vehicle, you’ll need to have a record of its sales price as well.

How do taxes work when donating a car?

Donating a vehicle can be rewarding in and of itself, but if you’re also hoping for a tax deduction from the IRS, your vehicle donation will need to meet the right criteria.

To take advantage of a tax deduction, you’ll also have to itemize when you file your tax return as opposed to taking a standard deduction.

Whether your vehicle donation qualifies as tax-deductible will also depend on how it’s used by the charity. The IRS has different requirements depending on whether the organization will sell the vehicle or use it for their own operations.

For vehicles that are sold for scrap or auctioned off by the charity:

If the vehicle has a value of $500 or less, you could deduct $500 or the vehicle’s fair market value—whichever amount is less. So if your vehicle was worth $350, your deduction couldn’t exceed that amount.

If the vehicle is worth $500 or more, you could deduct the lesser of either the vehicle’s fair market value or the charity’s gross proceeds from the sale. So if your vehicle was worth $1,300 but the charity was only able to bring in $900 gross proceeds after the sale, your deduction couldn’t exceed $900.

When the charity of your choice does sell the vehicle, they’ll need to notify you in writing about your donation and its sales price within 30 days of its sale date.

If the nonprofit organization keeps your car, you can usually claim its fair market value as a deduction. When determining fair market value, the IRS states that vehicle donors should use a private party value as opposed to a dealer’s retail value.

It’s a good idea to consult a tax professional about the logistics of your own donation ahead of making it, especially if you’re hoping to get a sizable deduction out of it. The

Minnesota Attorney General’s Office

website also provides additional tips for making charitable donations and their possible tax deductions hassle-free.

Key Takeaway Be sure to do your homework before picking an organization to donate your vehicle to—including their tax-filing status with the IRS—so you can avoid scams and maximize your tax deduction.

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Where to donate a car in Minnesota

Still searching for the right organization to donate your vehicle to? Here is just a sampling of Minnesota’s vehicle donation programs.

Vehicles for Veterans

is a car donation organization providing support to disabled US veterans and their families. Conveniently, the organization says it can pick up vehicles anywhere in Minnesota, including

St. Paul

Minneapolis

, and

Rochester

By donating your vehicle, you are contributing to veteran outreach services, including health and wellness, medical care, employment, disability, housing, and pension benefits. Use their convenient

online donation form

to get started.

Prostate Cancer Awareness Project

The Prostate Cancer Awareness Project

makes repairs to and advertises your donated vehicle to get the highest selling price in a retail environment—and a maximum tax write-off for you. The funds raised from your car’s sale aid in the organization’s mission to fight prostate cancer, including education and awareness, early detection, and other prostate health resources.

Cars2Charities

is an excellent choice for a donor who wants to maximize their tax deduction and browse a wide selection of

causes

. This organization partners with local charities to help them process, repair, and sell donated vehicles as quickly and easily as possible. You may also qualify for a transferable

vacation voucher

Minnesota Public Radio

From Minneapolis to Rochester and beyond,

MPR

keeps the state of Minnesota well-informed and entertained around the clock—and your vehicle donation (whether it runs or not) could help support those efforts.

MPR partners with Car Talk Vehicle Donation Services to manage the process, and you can find more information on the MPR website or get started by filling out their

online donation form

Goodwill

Goodwill accepts much more than clothing donations—you can also

donate your car

. Proceeds from your vehicle contribution support community programs like job placement and training, especially for people who may have difficulty securing conventional employment. Check out the

Goodwill Car Donation

website for more information on donating a car in Minnesota.

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