Your Tax Deduction

Volunteers of America is a tax-exempt charity under section 501(c)(3) of the Internal Revenue Code.

Here’s how your tax deduction works:

• Vehicle value up to $500–if the claimed value of your vehicle donation is $500 or less, or the vehicle is sold by Volunteers of America for less than $500, you may deduct the fair market value up to $500.
• Vehicle value more than $500–deductions for vehicles with a claimed value of more than $500 may not exceed the selling price of the vehicle.

The Internal Revenue Service requires Volunteers of America to obtain your social security/tax identification number. Upon the sale of your vehicle, you will receive a receipt documenting the sales price. If you itemize your taxes, you can claim this amount as a deduction.   

How do I calculate the value of my donated vehicle?
Internal Revenue Service tax laws changed of January 1, 2005 for donating your vehicle. Volunteers of America is a tax-exempt charity under section 501(c)(3) of the Internal Revenue Code. If the claimed value of your vehicle donation is $500 or less, or the vehicle is sold for less than $500, you may deduct the fair market value up to $500. Deductions for vehicles with a claimed value of more than $500 may not exceed the selling price of the vehicle. These IRS forms and publications can assist you: 

• Donor's Guide to Vehicle Donations: A booklet that helps walk you through each step of the donation process.
• IRS Publication 561: Determining the Value of Donated Property: This publication is designed to help donors and appraisers determine the value of property (other than cash) that is given to qualified organizations. It also explains what kind of information you must have to support the charitable contribution deduction you claim on your return.
• IRS Publication 561 - Appraisals: Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, other than money and publicly traded securities, you must get a qualified appraisal made by a qualified appraiser, and you must attach an appraisal summary (Section B of Form 8283) to your tax return.
• IRS Form 8283: IRS form for non-cash charitable contributions.