How Does Vehicle Donation Work?

Hands of The Carpenter Vehicle Donation Process

STEP 1

Tell us about your car by filling out an online form (Make sure that you have the keys and the title - we can walk you through the title signing process.)

STEP 2

We’ll contact you to arrange a drop off time (or tow if necessary)

STEP 3

We receive your car and we’ll put your donated car to work helping a local woman in need! A receipt for the donation is given right away, tax forms are sent out later.

STEP 4

You are done! Wait 1-2 months to receive your tax deductible receipt in the mail.

Car Donation and Taxes

Contributions made to the Hands’ Good Neighbor Garage are tax deductible for federal and state purposes. Additionally, vehicle contributions valued over $500 are also eligible for Colorado Enterprise Zone tax credits, equal to 12.5% of the value (or sales price if sold for over $500). Generally, when you donate your car to a charity, your tax deduction is limited to the gross proceeds from the ultimate sale or disposition by the charity.

However, when you make a donation to the Hands’ Good Neighbor Garage program you may be able to deduct the full fair market of the vehicle. 

Current tax law provides that if a charitable organization either makes a substantial improvement to a donated vehicle, or if they offer the vehicle for sale at significantly below-market value to needy individuals, then the donor may deduct the full fair market value of the vehicle. Since Good Neighbor Garage has the capability to make repairs (substantial improvements) to donated vehicles, and we also sell vehicles at substantially below-market value as part of our vehicle placement program, you have the opportunity for a maximum tax deduction.

How do I determine the market value of my car?

Several websites may assist you in determining the value of your car. These include NADA (nadaguides.com), Kelley Blue Book (kbb.com), and Edmunds (edmunds.com). For purposes of determining your tax deduction, we recommend consulting your tax adviser, and/or read IRS Publication 561 – “Determining the Value of Donated Property.” A car with a value greater than $5,000 must be appraised by a qualified appraiser. See the “Deductions of More than $5,000” section in IRS Publication 561 for more information.

Two women stand in front of a red van smiling, there is a giant bow on the hood of the car
A woman poses with two members of the Hands of The Carpenter staff as she receives a car

A few words from a recent car donor:

“Hands of the Carpenter is an amazing place with a genuine purpose. They help single moms with the practical things needed (cars) to make a life and living for their families. Donating our car was a seamless and easy process. They are so friendly and helpful! I can’t say enough good things about this group or our experience with them!”

Wendy H.

We're still serving!

UPDATED 3/30/20:
As an essential business, Hands is open!

Operating with the highest level of care, our team is continuing to serve women who come for help and hope.

You can have an immediate impact through financial gifts, or offering a vehicle as a gift in our vehicle donation program.

Single women in need are still needing to get to the store, get to doctor’s appointments and provide for their families. 60% of the women in Hands’ two year repair, maintenance and education program have reported having lost a job, had reduced hours/pay or their business has closed all together. 40% suggest that their vehicle currently needs maintenance or repair. Transportation is a necessity – Please be a champion for them today! 

Hear more about how to help via this message from Dan Georgopulos.

Thank you in advance for your generosity! 

-Dan Georgopulos Founder & CEO