Tax Advantage

Donating a vehicle to Goodwill Industries helps us help people with disabilities and disadvantages get jobs. It's also an easy way to get a tax deduction because Goodwill is an IRS-approved IRS 501(c)(3) nonprofit organization. But before you donate, there are some important things you need to know.

Per IRS Publication 561, all nonprofit organizations are prohibited from assigning values to material donations. That means it's the donor's responsibility to determine the vehicle's fair market value. Since Goodwill was the first nonprofit in the nation to begin accepting vehicle donations back in 1978, here are some tips to make your tax preparation easier:

    • If the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale.

More IRS guidelines for charitable contributions can be found at their web site at http://www.irs.gov/ or by calling toll-free 1-800-829-1040.