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.
Donating to charity has many benefits. This act can help with taxes, boost a cause or community, and actually improves personal happiness! According to a recent research paper partnered between Harvard Business School, Simon Fraser University and the University of British Columbia, spending money on other people, also called “prosocial spending”, can increase happiness. Knowing which charity to donate to, however, can be a daunting task. There are many out there, and not all of them use the money they receive wisely. Two historical misuses are using donated funds to overpay executives, and spending more dollars on marketing than aid. So how do you ensure your donations go where they should?
Aligning with a charity or nonprofit begins with understanding your values and ethics. Understanding what is important to you and where you want to see change can highlight, plus eliminate, organizations immediately. When several prospects emerge, asking questions is key. Some useful questions are:
There are several sites on the internet which take the work out of digging into the infrastructure of charitable organizations, like their financials, leadership, and acts. One example is Charity Navigator, which provides free access to information regarding 225,000 charities. Charity Navigator is also a nonprofit, and receives funds from individuals, foundations, and corporations in order to keep ratings objective. GuideStar, under the nonprofit Candid, maintains a database of organizations and the detailed information of each group. Finally, the Better Business Bureau is one of these charity watchdogs as well. By reviewing each of the chosen public charities according to their 20 Standards for Charity Accountability, donors can get a clear picture of responsible practices. These trusted charity rating organizations are the most reliable throughout the industry.
For the sake of full transparency, let’s look at our own reviews. Houston Habitat for Humanity has been a part of Charity Navigator’s rankings since 2005. The report is based on Accountability & Finance, Culture & Community, and Leadership & Adaptability. Currently, we are a Four-Star Charity, scoring 100%, and noted as an organization to which “you can give with confidence.” This site gives quick, to-the-point metrics and scores.
With GuideStar/Candid, Houston Habitat is a recipient of the Platinum Seal. If you love to review numbers, this is the site for you! Informational graphs show revenue vs. expenses, assets & liabilities, and business model indicators. Further, organizational demographics are listed out such as race, ethnicity, gender identity, sexual orientation, and disability.
Better Business Bureau lists Houston Habitat for Humanity as an Accredited Charity, which is the highest available rating. Green marks are given for all categories, including no conflict of interest, providing detailed expense reports, having responded promptly to complaints, and reporting the results of effectiveness assessments. This site also shows when the charity report was issued and when it expires.
Looking for direct access to the financial statements, tax documents, and annual reports for Houston Habitat for Humanity? This link is found in this website under Who We Are, Financial Information. Additional information about how Houston Habitat for Humanity receives and distributes funds is noted in the blog post “How We Fund Our Mission”. Read it and other interesting articles.
What makes a good charity? Only you can answer that question, because everyone holds different beliefs and causes near to their hearts. The tools mentioned above provide transparency and evaluations of organizations, but it is ultimately your decision about what mission speaks to you, what programs best benefit your community, and what fundraising methods align with your finances. Remember, your dollars are your votes for how you want society to be.
Found your charities and are ready to donate money? Keep these tips in mind:
After you’ve completed your donation to a well-researched nonprofit of your choice, especially for the first time, keep an eye on your bank account and credit card statements for a while. Make sure you’re only charged the amount you agreed to donate ― and that you are not signed up to make recurring donations, unless you intended to establish this kind of giving. Also keep records of all donations for taxes. A dedicated folder within your email account can be helpful.
Donations to Habitat for Humanity come in many forms! Some people donate online, while others prefer to mail checks. If your job offers a matching gift program, consider including Houston Habitat. Sponsorships, planned giving, stock gifting, and memorial gifts are greatly appreciated. If you are already a Walmart.com and Kroger shopper, these companies will donate a portion of your purchase to Houston Habitat. Round up your change then donate to Houston Habitat on Walmart.com, and link your Kroger Plus Card to Houston Habitat by visiting their online site and entering organization ID #80051. We welcome all forms of donations and work hard every day to ensure appropriate use.
Wherever you decide to give, on behalf of the nonprofit community, thank you for doing your research and giving to the most deserving of organizations! Your charitable giving has reaching impacts from one generation to the next.
