Vehicle Donation Frequently Asked Questions

Vehicle Donation Frequently Asked Questions

What are the benefits of donating my car to SPOT 127?

SPOT 127 benefits by receiving a cash donation to fund our new and existing programs and increase community awareness through local events.

You benefit by being able to reduce your taxable income when taxes are itemized, and avoiding the costs associated with selling your car. No need to pay for advertising, no loss of privacy and possible security risk, and no need to pay for vehicle registration, insurance and repairs to keep your car in running condition while you wait for a buyer.

Do you only accept cars for donation?

Many types of motor vehicles are accepted including boats, motorcycles, trucks and cars.

What does SPOT 127 do with donated vehicles?

The vehicles are sold at a private auction. The funds from vehicle donations are used by SPOT 127 to support and produce quality multimedia content and educational programs as well as to support our outreach efforts in our community.

Does my car have to be running to qualify for donation?

In some cases we can take your car, running or not. However, it must have an engine and be towable.

What paperwork do I need?

The only paperwork needed is a signed, clear title. Have your title with you when you call in your donation. (Please note: a clear title indicates the title is in the name of the donor without a lien.)

What if I lost the title?

Just visit a State of Arizona Motor Vehicle Division (MVD) office, complete a title application, and check off the "Title Only" and "Duplicate" boxes on the top of the form. Be prepared to show a photo ID, such as your driver's license or state ID card. The MVD will issue you a duplicate title for $4.

Unfortunately, SPOT 127 cannot help you in this process.

What if my car won't pass the state inspection?

We can accept vehicles without a state inspection sticker or current registration as long as there is a clear title.

Do I need a smog certificate in order to donate my car?

For states that require smog certificates or safety inspections, you may donate your vehicle without these documents.

How does the new law affect my tax deduction?

Donors are no longer responsible for determining the deductible value of their donation. Instead, they will receive IRS Form 1098–C, Contributions of Motor Vehicles, Boats, and Airplanes if the proceeds from the sale exceed $500, stating the amount of the gross proceeds from the sale of the donated vehicle. The amount listed on IRS Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes will be the gross proceeds of the deductible donation.

Will I get a tax receipt for my donation?

Yes, our driver will issue a receipt at the time of pickup. This is not your final tax receipt unless the sale of your vehicle does not exceed $500. This initial acknowledgement will indicate your name as well as the year, make, model, and condition of the car you are donating. It will be your only receipt if your vehicle sells for less than $500.

What can I claim as a deduction?

According to the tax law effective Jan. 1, 2005, if the claimed value of the donated vehicle exceeds $500, the taxpayer is limited to the gross proceeds of the sale.

An IRS Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes will be mailed to you within 30 days of the sale stating the amount of gross proceeds received from your car, provided your vehicle sold for more than $500. This will be your tax receipt for your charitable contribution.

How is the value determined on the vehicle donated?

The value is determined by the gross proceeds raised from the sale of the donated vehicle. You no longer have the burden of determining the value yourself.

Does the new law affect SPOT 127?

SPOT 127 has additional paperwork in reporting the gross proceeds raised from the sale of the vehicle to the donor and IRS. The process of obtaining the cash donation from the vehicle remains the same.

What if my car is valued at more than $5,000?

Effective January 1, 2005, you are no longer required to have vehicles appraised. The value you may claim will be the amount of gross proceeds received from your vehicle.

When is the latest time I can donate a vehicle to SPOT 127 and qualify for a tax deduction in the current tax year?

Vehicle donations committed to SPOT 127 by midnight of Dec. 31 are considered as donations for that tax year, even if the vehicle is picked up and sold after Jan. 1.

Do I have to be with the vehicle at the time of pickup?

No. Special arrangements can be made by calling our representative.

Do I pay for the towing?

No, there is no charge to you for the towing.