Under the provisions of the American Jobs Creation Act of 2004, in general, unless the charity materially improves the car or uses it in its own program, the charity is now required to notify donors on a Form 1098-C submitted within 30 days of the sale, of the amount of gross proceeds of the sale of the vehicle. The donor will have to file the form with the tax return claiming the deductionif the donor wants to claim a deduction of more than $500.  The donor's deduction is limited to the amount of the gross proceeds of the sale.  If the organization sells the vehicle for $500 or less, the donor can deduct the smaller of $500 or the vehicle's fair market valueon the date of contribution.