? Claiming More Than Wholesale Auction Value When Donating a Car to Charity

It is unfortunate that while so many charities accept non-cash gifts such as donating cars, stocks or durable goods, very few of them handle this task themselves.
This practice, involving a partnership of for-profit companies who manage the towing and paperwork with the charity itself, often result in a perfectly good car (though it may need some minor work) being sold at a wholesale auction.

Very often these cars are sent out for parts or sold elsewhere for yet another profit that goes to for-profit car lots (often those that prey upon low-income folks with few options) rather than the charities that actually serve people who need transportation.
Perhaps worst of all, donating your car to such an company results in a far lower allowable tax deduction when donating a car for tax break purposes.

Of course, one of the most compelling why many people consider donating cars past their prime is the hefty tax deduction benefit that many car donation services advertise.
However, since 2005, the rules that govern how you may take your deduction have changed.
Now, you are only able to deduct (from your Form 1040, Schedule A, Itemized Deduction worksheet) the amount that was actually delivered to the charity of your choice.

As such, when donating a car, you want to make sure you and the non-profit organization (NPO) both get the most for your car as possible.