Types of Car Donation Programs and Their Impacts on Tax-Exempt Status and Deductibility

This section identifies four common types of car donation programs and the tax consequences for a charity and its contributors. CHARITY USES OR DISTRIBUTES CARS* – The charity uses donated cars in its charitable program or distributes the cars to needy individuals. The program should not have an adverse impact on the charity’s taxexempt status. Donors may deduct their contributions (if all other requirements are met).


For most property donations for which the deduction claimed is greater than $5,000, the donor must obtain an appraisal. A qualified appraiser must complete and sign Section B of Form 8283, called the appraisal summary; and an authorized official of the charity must also complete a portion of the form and sign it. The donor must give the charity a copy of Section B. A charity required to sign Form 8283 for receipt of a car must file Form 8282, Donee Information Return, if it sells or otherwise disposes of the car within two years after the date it received the car. This form must be filed within 125 days after the charity disposes of the car. This form requires the charity to identify the donor, the charity, and the amount the charity received upon disposition of the car. The charity must give the donor a copy of the completed Form 8282.