Tax Information

Receive tax deductions for your generosity

The St. Vincent de Paul Society is a 501(c) (3) nonprofit charitable organization. If you itemize deductions on your tax return, you may claim a deduction for your vehicle donation. Generally, donors who itemize their tax deductions can deduct the fair market value of any donated vehicle. For more complete information, see: IRS Publication 4303, A Donor’s Guide to Vehicle Donations (PDF) at the IRS website. See additional links below.

Reporting requirements

SVDP’s Responsibility: Auto Donation Program will provide a tax receipt for each vehicle donated. For a vehicle auctioned for $500 or more we will also provide the donor an IRS form 1098-C if the donor has provided us with a social security number. For a vehicle auctioned for more than $5,000 will also sign the donors Form 8283, Section B, part IV.

Donor’s Responsibility: If your vehicle was auctioned for $500 or more you will have to complete Form 8283 and include Form 1098-C with your IRS filing which itemizes deductions. Complete Form 8283 Part A for vehicles which sold for $500 but less than $5,000. Complete Form 8283 Part B for vehicles which sold for more than $5,000. Form 8283 Part B will require an appraisal (SVDP has information on appraisers) and a signature of a SVDP representative.

Good Questions to Ask Before Donating

Is the organization qualified?

SVDP is an IRS qualified 501(c) (3) nonprofit organization. Taxpayers can make certain that they have donated their vehicle to an eligible organization by calling IRS Tax Exempt /Government Entities Customer Service at 1-877-829-5500 or by checking IRS Publication 78 which lists all IRS recognized charitable organizations.

Is the charity worthy?

Legitimate charities are worthy of your donation but you can look deeper into their financial practices. Taxpayers can view any charitable (except churches) organization’s state financial filings. Information like the percentage of revenue the charity spent on charitable programs versus the percentage spent on administrative costs is useful in determining the worthiness of a charity. For California charities, the California Attorney General's office maintains a searchable charities database with information about qualified charites.

Who am I dealing with?

Ask those soliciting for your vehicle donation, who’s their employer. Do they work for the charity itself or a private fundraiser acting on the charity's behalf. If it is a private fundraiser, what percentage of the Gross Revenue is given to the charity? You can verify this information for California here

Will I get a good deduction for my vehicle?

St. Vincent de Paul tries its best to maximize the value of your donation. We specialize in selling the donated cars in retail, instead of wholesale settings, to maximize your deduction and our donation.

IRS links

The IRS website is a great place for fast access to IRS regulations concerning vehicle and real property donations. Adobe Acrobat Reader required.

For information about determining the Fair Market Value of a vehicle you can read Publication 526: Charitable Contributions and IRS publication Publication 561: Determining the Value of Donated Property.

Use IRS Form 8283 for filing your taxes, with instructions here.

 

Tax Deduction FAQ

1. What needs to be on a donation tax receipt?

2. When will I receive my tax receipt?

3. How big of a tax deduction will I get from my donation?

4. What are some of the IRS vehicle donation tax deduction guidelines that I should be aware of?

5. Is the Fair Market Value the same as the tax deduction I will receive?

6. I would like to donate my vehicle and receive a tax benefit but I do not itemize on my tax returns. Will I still receive a tax benefit?

 

1. What needs to be on a donation tax receipt?
A vehicle tax receipt must have: the charity's name; its Federal Tax ID number; the donor's name; date of donation; and, the year, make and model of the donated vehicle. It is important to note that only 501 (c)(3) charities can give official tax receipts. back

2. When will I receive my tax receipt?
SVDP will usually give you a tax receipt at the pickup meeting or mail it within 30 days of selling your donation. It usually take 30-60 days to sell a donated vehicle from the time it is picked up. back

3. How big of a tax deduction will I get from my donation?
First, you must itemize deductions on your IRS tax return in order to receive a tax deduction for your donated vehicle. Second, you determine the amount of the tax deduction based on the fair market value of your donation. If a vehicle donation is worth less than $5,000 the IRS allows the donor to determine the car's Fair Market Value. It is important to note how the IRS defines Fair Market Value as: "the price a willing buyer would pay a willing seller when neither has to buy or sell, and both are aware of the sale conditions". SVDP will auction most vehicles to buyers hence the Fair Market Value could be the price your donated vehicle sold for, commonly known as the "Gross Sale Amount" paid by the higest bidder, and this amount is reported to you on the 1098-C form we will send to you. back

4. What are some of the IRS vehicle donation tax reduction guidelines that I should be aware of?
You should be aware that the donor, not the charity, is responsible for determining Fair Market Value of the vehicle donation, taking into full consideration its condition at the time of donation. For vehicles with a Fair Market Value of more than $5,000.00 the IRS requires a third party appraisal company to appraise the vehicle, which SVdP can refer you. back

5. Is the Fair Market Value the same as the tax deduction I will receive?
No. Your charitable contribution will reduce your taxable income which is not the same amount as your tax benefit. back

6. I would like to donate my vehicle and receive a tax benefit but I do not itemize on my tax returns. Will I still receive a tax benefit?
No. In order to receive a tax benefit a donor must itemize your deductions on your tax returns to receive a tax deduction. back

Disclaimer: Donors must rely on their own tax counsel for personal tax advice. St. Vincent de Paul Society does not provide tax advice.