How to Donate a Car to Multiple Sclerosis

By Monica Miller

Overview

Donating a car to a Multiple Sclerosis (MS) charity is a win-win situation for all parties involved. The donor receives, in addition to the satisfaction that comes from charitable giving, an income tax deduction and a hassle-free way of getting rid of an unwanted vehicle. The charity receives an asset that can be put to immediate use in day-to-day activities or that can be sold at a fair market price. It's really not much more difficult than picking up your phone, but there are a few things you should know.

Step 1

Determine the worth of your vehicle. According to the IRS, you are allowed to deduct the fair market value of your vehicle, or in other words, what the car would currently sell for in its present condition. If it's worth is more than $5,000, then you will need an outside written appraisal to back up your claim to the IRS.
Step 2

Contact the Multiple Sclerosis Foundation in Fort Lauderdale, Florida. Established in 1986, the MSF is a 501(c)(3) non-profit organization that networks with local MS charities. Its lack of branch offices enable it to operate in a cost-effective and efficient manner, and all funds raised by the MSF go directly to assist people living with MS. You can contact the MSF by phone at (800) 225-6495, or visit their website (listed below in Resources.) The link for vehicle donations is on the left under "Support the MSF."

Step 3

Fill out the short form on the MSF website with your contact information and a few details about your car (make, model, year). Alternatively, you could give this information over the phone to a live operator.
Step 4

Wait to hear back from the foundation and arrange a pick-up time for your vehicle. Depending on whom they contract with in your locality, the car may not even have to run.
Step 5

Get a receipt with the charity's identification number on it. This receipt will allow you to take a tax deduction for the donated vehicle. If you're unsure how to claim the deduction on your tax return, refer to the IRS publication listed below in the Resource section.

Skill: Easy
Ingredients:
Vehicle
Vehicle title
Written appraisal if the vehicle is worth more $5,000
Tip: Obtain a copy, if you can, of the transferred title showing the charity's name on it. This will serve as further proof of your charitable gift should the IRS require it.
Warning:
There are many "donate a car to charity" businesses that advertise on the Internet and television. Many of these are perfectly legitimate, but you should know that in some cases these businesses will give the charity a flat fee (like $100 per car) instead of a percentage of the actual dollar amount incurred by the sale of the car. This could also affect whether or not you are eligible to take a charitable deduction on your taxes. Always be aware of the terms of any third-party broker you enter into agreement with.

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