How to Donate a Car in North Dakota
In North Dakota, donating a car can earn you a federal tax deduction.
Written by Sarah Gray
Reviewed by Kathleen Flear
Most people needing to rid themselves of an unused vehicle don’t think about donation, but donating your car is actually an excellent and easy way to get rid of an unused car while saving yourself money on taxes. To make this already simple process even easier, we’ve assembled this guide to teach you everything you need to know about donating a car in North Dakota.
In this guide,
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gives you everything you need to know about how and where to donate your vehicle and how to take advantage of tax deductions. We'll even throw in a tip for how to save on your North Dakota car insurance costs
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How to donate a car in North Dakota
Donating your car can be a much more convenient option than
selling it
or trading it in
, and the process is simple and straightforward. Here are the steps you’ll need to follow to donate your vehicle in North Dakota:- First, do some research and select the organization you want to receive your donation. This is important not only to ensure your money goes where you want it to go but also to ensure you don’t end up getting scammed.
- To make sure you’ll be able to take advantage of a tax deduction, hop onto the IRS’sonline search tooland check Pub. 78 data on your organization to ensure donations made to them can be tax deductible.
- Though not all charities require it, make sure you gather your vehicle’s paperwork, like the title and registration.
- Determine your car’s fair market value with a quick look atKelley Blue Book. You’ll need this information to calculate your tax deduction.
- Contact the organization to schedule your pickup or determine your drop-off location.
- Once you’ve donated your car, be sure to keep your receipt and keep an eye out for a confirmation of sale that you’ll likely receive in the mail. It will tell you the final sales price of your vehicle, which you’ll need when you move to claim your tax deduction.
How do taxes work when donating a car?
A key reason many people choose to donate their cars rather than sell them is to take advantage of a tax deduction.
While most organizations will sell your donated car to raise funds for their charity, others may keep it. If the organization you donate your car to keeps it, you’ll claim the car’s fair market value on your taxes.
If the organization sells your car, the amount of your tax deduction will depend on your car’s final sale price.
- If your car sells for more than $500, you should claim the sale price on your taxes, even if it's less than your car’s fair market value.
- If your car sells for less than $500, you should claim either the sale price or $500, whichever is less.
Be sure to double-check that the organization you’ve chosen to donate to can accept tax-deductible donations if getting a deduction is your aim in donating your car. Giving away a car doesn't automatically entitle you to a tax deduction.
Key Takeaway Do some research before you donate your car to make sure the donation will be tax deductible.
Where to donate a car in North Dakota
Now the good part—choosing the organization you’ll donate your car to. To help you make your decision, we’ve gathered information about some of the places people often donate their cars in North Dakota.
Cars for Prostate Cancer
Cars for Prostate Cancer
sells donated vehicles and uses the funds to benefit the Prostate Cancer Awareness Project—a national charity dedicated to increasing prostate cancer awareness and survival. They make it easy by handling everything at the DMV for you. All you have to do is schedule a pickup.Wheels For Wishes
Wheels For Wishes
sells donated vehicles to raise funds for critically ill children through the Make-A-Wish® Foundation. That means the proceeds from your car’s sale will give a critically ill child the chance to focus on something other than medical routines while making their wish come true!Goodwill Car Donation
We bet you didn’t know Goodwill accepts cars as well as clothes! When you donate a vehicle to
Goodwill Car Donations
, the funds from its sale will go toward job training for disadvantaged North Dakotans. Kars4Kids
Kars4Kids
will use the proceeds from the sale of your car to fund mentoring, summer camps, and after-school programs for children throughout the nation.Vehicles for Veterans
Vehicles for Veterans
sells donated cars to raise funds to support programs for disabled veterans and other veterans’ causes, including employment, medical care, housing, and more. Cars2Charities
Many charities just don’t have the ability to accept large donations, like vehicles, on their own. That’s where
Cars2Charities
comes in. Cars2Charities sells donated vehicles to benefit the charity of your choice. Donations to Cars2Charities come with a potential bonus in addition to a tax deduction as well—a free vacation voucher
!How to find affordable car insurance quotes in North Dakota
When you choose to donate your car rather than sell it, you’re doing something great for those less fortunate than you. Sure, you get to take advantage of a great tax break, but why not treat yourself to some added savings by letting
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