Good News Garage is a win-win solution for donors, clients and communities, and we strive to make the donation process as easy as possible. Good News Garage is a 501(c)(3) registered nonprofit organization, and all vehicle donations to Good News Garage are tax deductible. Please refer to IRS Publication 4303: "A Donor's Guide to Vehicle Donations"
for more information. This tax deduction information is meant to give a general overview of the car donation tax law. Please consult with a professional tax preparer before donating your vehicle.
Unlike some other car donation programs, Good News Garage does not offer "free gifts" in exchange for car donations. Gifts impact the value of your charitable tax deduction. According to the IRS Publication 526: Charitable Contributions
, any benefit received as a result of the donation must offset the tax deduction. Good News Garage does not offer gifts for vehicle donations, because we do not wish to devalue your tax deduction.
Want to know more about the tax deduction when donating your car? Here's how it works:
STEP 1: Donate your car, truck, van, motorcycle, boat, RV, etc.
Vehicles of any age or condition (cars, trucks, vans, and also motorcycles, scooters, RVs, lawn tractors, boats and planes!) may be donated to Good News Garage from any New England state as well as eastern New York. We may be able to accept donations beyond the New England are as well. Donate by calling toll free 877.GIVE.AUTO (877.448.3288), or you can donate online.
STEP 2: Good News Garage inspects your vehicle
Qualified mechanics conduct a 72-point inspection of the vehicle. Depending on a number of factors, including the mileage and cost of repairs needed, Good News Garage determines how to process the vehicle.
STEP 3: Good News Garage processes your vehicle
Scenario 1: Your vehicle is repaired and provided to a low-income family.
Lack of transportation is a major barrier to employment and education for the families we serve. When a vehicle is provided to a family in need, the donor may deduct the fair market value (defined as the price the car would have sold for on the open market). To determine your vehicle's value, please refer to the Kelley Blue Book
Scenario 2: Your vehicle is sold at auction to benefit Good News Garage.
Donated luxury cars, cars too expensive to repair, or cars that are not a good match for families are sold at auction. Money from these sales help pay for repairing vehicles for families. On average, GNG spends more than $1,500 on every car provided to ensure it is safe and reliable. When a car, truck or van goes to auction, the donor may deduct what the car sold for or $500, whichever is greater.
STEP 4: Good News Garage sends you a tax deduction letter
Once your car donation has been processed (which can take eight to 12 weeks) you will receive a letter in the mail outlining what happened to your vehicle and how much you can deduct on your taxes. Please note that as required by the IRS, Good News Garage will need to include your social security number in your tax deduction paperwork if your tax deduction is more than $500.You do not need to provide your social security number if you do not want a tax deduction.