—and benefit from tax deductions all at the same time—donating your car to a charity is a great option. We’ve picked out some of the best charities for car donations in Illinois.

That car you don’t drive anymore isn’t doing anyone any good rusting away in your driveway, but getting someone to take it off your hands can be a challenging process.

Selling your car

involves the time-consuming process of finding a buyer, while trading in your used car doesn’t always pay off.

So what other options do you have when it comes to getting rid of your unwanted vehicle?

While you might not know much about car donation, it can be a rewarding, not to mention convenient, process when it comes to offloading a car you no longer need.

Thankfully,

Jerry

is here with this handy how-to guide on Illinois car donation. From avoiding scams to the best charities to work with, we’ve got you covered.

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How to register a car in Illinois

How to donate a car in Illinois

Compared to selling your unwanted car or trading it in, donating your car is a remarkably convenient process. Let’s take a closer look:

Select a charity. Because car donation has become a relatively popular industry in recent years, it has also become a rife hunting ground for scammers. When selecting a charity, you’ll want to make sure that they are not only reputable but also that its mission statement aligns with your own values.

Determine if your donation is tax-deductible by using the IRS’s

online search tool

to check Pub. 78 data. This tool will help you determine which organizations can legally receive tax-deductible car donations.

Collect your documents. Regardless of how you’re offloading your vehicle, you’ll likely need to produce a series of legal documents, including a signed title, the

vehicle identification number (VIN)

, and potentially an odometer statement attesting to the vehicle’s current mileage.

Look up your vehicle’s fair market value. Use

Kelley Blue Book

to determine your used car’s fair market value, which will help to determine your tax deduction.

Schedule a pickup. Once you’ve decided which charity to work with, you’ll need to arrange a time and place for your car to be collected for donation. Sometimes, this process is done over the phone; other times, this information will be included on the charity’s donation form.

Keep your receipt. You’ll need to hang on to your donation receipt in order to claim your tax deduction. Additionally, if your selected charity later sells your vehicle, be sure to find out how much they sold it for so you know how much you’re eligible to claim.

How do taxes work when donating a car?

Most charities will likely sell your vehicle after you donate it to raise money for their organization. Because you’re participating in this fundraiser by donating your vehicle, you’re eligible to claim a tax deduction.

You can claim the sale price of your donated vehicle anytime a charity sells the car for more than $500—even in cases where the market value was higher than the sale price. So if your vehicle had a fair market value of $2,000, for example, but was only sold for $800 by the charity organization, you’re only able to claim the actual sale price of $800 on your taxes.

In cases where your vehicle sells for less than $500, you have the option of either claiming $500 or the fair market value—whichever is less. Because charities often sell donated cars at significant markdowns to those in need, this rule allows you to claim a larger deduction in cases where the charity doesn’t charge much for your vehicle after you donate it.

If the organization decides to keep your vehicle, you are allowed to claim the full fair market value on your upcoming taxes.

That being said, not all charity organizations offer tax-deductible donations. For example, if you donate your vehicle to a trade school where the car will be used to train future mechanics, you might not be able to claim any deductions on your taxes.

Key Takeaway Be aware of your chosen charity’s reputability and tax-deductible status before committing to donating your unwanted car.

Where to donate a car in Illinois

So you’re ready to donate your car in Illinois, but now you have to decide where to donate. With a wide array of reputable charities in Illinois, it can be hard to know where to start looking. Here are six of the best charities for car donation in Illinois.

Wheels For Wishes

sells donated vehicles in order to raise funds to benefit critically ill children through the nationwide Make-A-Wish® Foundation.

The

Illinois chapter of Wheels For Wishes

accepts donated cars, trucks, SUVs, motorcycles, motorhomes, trailers, RVs, watercraft, and even vehicles that are no longer running. Wheels for Wishes also offers free pick-up anywhere in-state.

Cars for Prostate Cancer

uses proceeds from donated vehicles to raise funds and awareness for the testing and treatment of prostate cancer nationwide.

Cars for Prostate Cancer also pledges to sell your donated vehicle for the maximum amount possible and provide you with an IRS receipt so you can make the most of your tax deduction.

Goodwill

While you might be more familiar with donating old clothes and furniture to your local Goodwill, did you know that you can also donate cars to the charity?

Goodwill Car Donations

uses the proceeds from donations to help disadvantaged Illinoisians get access to job training.

Kars4Kids

provides children nationwide with the resources they need to live happy, safe, and successful lives with the proceeds they earn from reselling donated cars. In addition to being a tax-deductible donation, you’ll also receive a

vacation voucher

for a three-day, two-night hotel stay when you donate with Kars4Kids.

Vehicles for Veterans

is a charity organization using the proceeds from donated car sales to provide U.S. military veterans with much-needed medical, housing, and financial support. When you donate to Vehicles For Veterans, you can rest assured that you’re getting the highest possible tax deduction for your donation.

Cars2Charities

Sometimes, charities don’t have the facilities to process car donations on their own and instead hire a car donation servicing company to help, like

Cars2Charities

. In addition to partnering with a number of your favorite charities throughout Illinois, Cars2Charities also offers a

vacation voucher

when you donate.

MORE:

Car loan in Illinois 2023

How to find affordable car insurance quotes in Illinois

In addition to being a karma-friendly philanthropic act, donating your car is a great way to save money on your taxes. If you really want to rake in the savings, why not download the

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Saving you both time and money on your car insurance policy, Jerry is the only insurance super app that can help you find the best car insurance policy while helping you learn the ins and outs of car donation.