What are my tax advantages donating to Chariots4Hope?
Chariots4Hope’s vehicle donors may gain a more favorable tax advantage since we award the donated vehicles to people in need. Awarding vehicles is the spark that ignites our mission to demonstrate God’s love through reliable transportation. Because that’s our mission, IRS regulations allow many Chariots4Hope donors to claim their car’s full fair market value—the maximum permitted by law.
We have licensed professional mechanics to inspect each donation to determine the best approach in securing the greatest value for the families Chariots4Hope serves while maximizing the vehicle donor’s tax deduction. Vehicles donated to us correspond to one of the four categories:
Vehicle Assitance Program
Goal: To repair and detail the car and award it to a qualified low-income family.
Tax Deduction: Donors can deduct the vehicle’s fair market value.
We can restore these vehicles for around $1000 and will provide approximately two years of reliable service. They are then awarded to low-income individuals and families at a price significantly below fair market value. On average, these vehicles are 12 – 15 years old and have fewer than 150,000 miles; however, some cars are outside of this range.
Vehicle Buying Assistance Program
Goal: To repair and detail the car and sell it to a qualified low-income individual. All proceeds support our mission.
Tax Deduction: Donors can deduct the vehicle’s selling price, which is usually close to the fair market value of the vehicle.
We can restore the vehicle for around $1000 and provide approximately 2-4 years of reliable service to one of our recipients. Low-income recipients who usually don’t qualify for traditional lending then purchase the vehicle at close to fair market value.
Vehicles for Sale
Goal: To detail the donated car and then sell it to the general public. “As is” vehicles have minimal to no repairs completed. We communicate all known damages to the potential buyer, and all proceeds support our mission.
Tax Deduction: Donors can deduct the vehicle’s selling price, which ranges from the fair market value depending on the condition of the “as is” vehicle.
We offer these vehicles to the general public and do not require a referral from one of our qualified Referring Organizations.
Includes: High-value vehicles that may be expensive for our recipients to insure, repair, and maintain. • Vehicles with substantial repairs but still worth more than a salvage/junk value.
Salvage and Auction Sale
Goal: To send the donated vehicle to one of our auction or salvage partners to achieve the best selling price.
Tax Deduction: Donors can deduct the selling price of their vehicle with a minimum deduction of $500.00. On average, vehicles at auction can sell anywhere from 1/3 or below the car’s fair market value. The price varies based on the year, make, model, and damages of each vehicle.
Includes: Vehicles that require major repair (engine, transmission) • Vehicles that don’t meet our reliability standards and wouldn’t be cost-effective to restore.
NOTE: Consult your tax advisor and review the following IRS documents.