The charity to which you donate your car cannot be the party to determine the value of your gift, as the IRS considers that a conflict of interest. It is the donor's responsibility to determine the fair market value of cars donated prior to making the donation. See the section on valuing your car donation for more information on how to determine its value when you have a vehicle to donate.


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Donate Car For Charity Tip: There are specific steps to car donations, and good car charities will give you step-by-step instructions on how to donate cars, and provide good car donation tips along the way. The first step in donating a vehicle is to determine exactly what to donate. You can donate any car, truck, SUV, motorcycle, boat, RV, or even airplane that you own. You will need to have the title for your vehicle in order to prove ownership. However, if the title has been lost or misplaced, most states have a procedure in place to obtain a replacement title. However, this can delay the process of making a donation, so it is always best to have the title in hand when you call to make a car donation.


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If you happen to donate a boat directly to a charity that will use the boat or improve it prior to re-selling it, there are several resources that can help you determine its fair market value. The following sites will help you determine the value of your boat. NADA Guides lists pricing for powerboats and sailboats from 1970 – 2003; BoatUS.com will email a free estimate of the fair market value of your used boat, and Boat Trader Online lets you check the value of your boat compared to current boats for sale.


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As of January 2005, IRS rules for vehicle donations, including boat donations, state that you may deduct the full price a charity receives for the sale of your boat. This process is much simpler than the previous fair market value system, and will reduce the risk of your overvaluing the boat. The charity to which you are donating should provide you with an initial receipt for the donation when the boat is picked up, and is required to send you a second receipt as soon as the charity sells the boat. That sales price amount is your tax deduction. Note that if the charity is keeping the boat for its own use or to make material improvements prior to re-selling it, you may still be able to use a fair market valuation.


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