It’s actually super convenient to donate a car when compared to listing it for sale, meeting prospective buyers, and haggling over the price. The donation process is straightforward:

Search for a qualified organization. Not all charities can receive donations like this, but be wary of those that claim they can. Car donation is a big industry that draws scammers.

Check out the IRS’s

online search tool

to look at Pub. 78 info. This tool will allow you to find out if your chosen organization is eligible to receive tax-deductible donations.

Assemble documentation. You will probably need a signed title, but you might also need the car's information like the VIN and make/model. You might even need the current mileage.

Find out the car’s fair market value. You can check

Kelley Blue Book

for this information.

Hand over the vehicle. Most organizations will pick up a vehicle for free. You might have to fill out a donation form or make a phone call to schedule a time.

Retain your receipt. The organization should provide you with a tax receipt, which you’ll need when you file your taxes at the end of the year. Make sure you know the sale price if the organization sells the car.

Key Takeaway Check out an organization’s tax records before donating to ensure you aren’t getting scammed.

How do taxes work when donating a car?

The tax deduction you can claim is the big appeal of donating a car. Keep in mind that many organizations that accept vehicle donations will then

sell the car

The amount the car sells for affects how much you can write off at the end of the year.

If the sale price is more than $500, you will need to claim that price on your taxes—regardless of the market value of your vehicle

If the sale is less than $500, you have to claim the lesser amount of $500 or the fair market value

If there is no sale of the vehicle, you can claim the fair market value

These rules apply only to organizations that are eligible for tax-deductible donations. If you know a group of volunteers who regularly feed the homeless and need to raise funds for food supplies, they wouldn’t be eligible to provide you with a qualifying tax receipt.

MORE:

What to consider before donating your car

Where to donate a car in New Mexico

Okay, you’re ready to do some good and donate your car. Which organizations are eligible? Here are six charities to which you can donate your vehicle in the Land of Enchantment.

Cars for Prostate Cancer

Prostate cancer doesn’t have as much awareness or funding as other types of cancer, and

Cars for Prostate Cancer

wants to change that. Their processing center is in Albuquerque.

Wheels for Wishes

raises money for the Make-A-Wish Foundation by selling donated cars. The proceeds benefit critically ill children and help fulfill their wishes. The organization offers free tows from

, Raton, and almost anywhere else in New Mexico.

Goodwill

When you think of Goodwill, you likely think of offloading last season’s clothes or some old furniture. But did you know they also take car donations? The

Goodwill website

explains everything you need to know about donating your car, which will support job training for the disadvantaged in New Mexico.

Kars4Kids

A 501(c)(3) nonprofit,

Kars4Kids

sells donated cars to fund educational, developmental, and recreational programming for low-income youth in New Mexico. Because they process their car donations themselves, your donation funds are maximized.