March 3, 2025
Is your old vehicle just sitting around, taking up space? Instead of trading it in, consider donating it to charity! Not only is it a hassle-free way to clear out your driveway, but it’s also an incredible way to support those in need of affordable housing.
By donating your car, you help fund affordable housing initiatives and contribute to a greener planet. Many people don’t realize that car donations directly support local communities, providing safe housing and essential resources for families struggling with housing costs.
Car donations benefit everyone involved—charities receive crucial funding, communities gain access to life-changing programs, and donors enjoy potential tax advantages.
Proceeds from donated vehicles often help:
Donating your car is also a smart choice for sustainability. Recycling vehicles reduces landfill waste and preserves valuable resources.
Did you know? According to the National Material Company, over 80 million tons of steel are recycled annually in North America. Each ton of recycled steel saves iron ore, coal, and limestone, making a tangible impact on the environment.
It’s not just cars! Habitat for Humanity’s Cars for Homes program also accepts:
Even if your vehicle isn’t in perfect condition, it can still make a difference as long as it has all major parts and tires.
The donation process is simple:
Car donations are considered charitable contributions by the IRS, meaning you may be eligible for a tax deduction. A car donation tax deduction requires filers to itemize deductions instead of taking the standard deduction.
The deductible amount varies. It depends on the charity’s use of the vehicle and its sale price.
|
Sale Value of Car |
Deductible Amount |
| $500 or less | Fair market value up to $500 |
| $501 or more | Exact amount the car sold for |
Resources like Kelley Blue Book, Edmunds, and NADA Guides can help you estimate your car’s fair market value. Once your vehicle sells, you’ll receive a written acknowledgment from the charity for tax purposes.
If your car sells for more than $500, you can deduct the full selling price, potentially leading to a substantial tax break.
About 50% of donated vehicles are sold at wholesale auctions, generating funds for community projects. Others are recycled for parts, helping those looking for resources reclaim valuable materials like steel.
If a vehicle appears to be a suitable resource, it can be offered to your local Habitat office for use in serving the community. Houston Habitat recently received a fairly new Honda truck that is used to assess construction sites.
Thinking about a car-free lifestyle? Many U.S. cities are becoming more walkable and bike-friendly, making it easier than ever to live without a car. Car-free living offers many benefits, including improved personal wellness and reduced environmental impact.
Donating your car could be your first step toward a simpler, more sustainable lifestyle.
Not ready to part with your vehicle? There are many other ways to give, helping you make a lasting impact in your community. Houston Habitat for Humanity accepts:
Donating your car is more than just a way to clear up space — It’s a meaningful way to support those in need while benefiting the environment. Plus, with potential tax deductions, it’s a win-win.
When you donate your car to Habitat for Humanity, you’re directly supporting local communities and helping families build brighter futures.
