Volunteering and donating are the most common things that people do to show support for their favorite charities. Donations can be in the form of money and/or goods. People usually donate food and used items such as clothing, shoes, furniture, tools and equipment. But what some people might not know is donating a car, old or unused, to charity is also possible and that they can get a tax break in return.

Actually, any old or unused vehicle – trucks, vans, SUVs – can be donated to charity. Even if they are no longer running or in need of extensive repair, charitable organizations will still take them and put them to good use. They can either fix them then give them to deserving families or individuals, or they can sell them and use the sales proceeds for other projects.

People who cannot afford to buy their own means of transportation are the main beneficiaries of a car donation charity. They are given old but running cars or repaired cars, so they can drive to work and access shops and schools. Being mobile is important especially for those living in areas far from public transportation routes.

Some vehicles may be beyond repair and can only be sold for parts and scrap metal. This does not mean that they cannot be used to benefit other people in need. Charitable organizations can use the proceeds of the sale to fund other projects.

Some people might say that donating a car to charity is not the only option for people who want to dispose of their old, unused or damaged vehicles. That is true. However, the two most common alternatives, selling their car themselves and trading them in a dealership, requires a significant amount of time and effort from vehicle owners.

For instance, even if they can fix a car for resale, they would still need to put up ads, answer inquiries and try to strike an agreement with prospect after prospect. Trading a car in a dealership involves fewer hassles, but they may never be sure that they are getting a fair price. Donating them to charity on the other hand is a simple transaction, making owners eligible for a corresponding tax break.

Charities can help donors understand how the tax break process works, but a simple rule of thumb is, the tax deduction is based on the fair market value of the donated vehicle or the amount for which the charity is able to sell the vehicle. For example, a donated car is evaluated at $1000, but if the charity is only able to sell it for $800, only $800 is tax-deductible.

An old or unused vehicle can be an eyesore and takes up a lot of space in a garage. One option for disposal is donating to charity. A car donation charity will take in any kind of vehicle, unlike dealerships. Damaged or not, running or not, they are able to find uses for this kind of donation and make a difference in other people’s lives.

Should you have a car that may not sell for much, why not look into donating a car to one of the available charity organizations in your area. Finding a car donation charity is easy and will count as a deduction on your taxes.

For the less fortunate, there are charities that help them in any way that they can. And these charitable organizations raise money and resources for their activities and charity missions through various fund raising activities and by accepting various kinds of donations. These donations may be in cash or in kind, like car donations.

The practice of donating vehicles like cars to charities is not a new practice. But it was only recently with the new enacted tax laws that the law became clear on how one can avail of car donation tax deduction.

So if you have an old car and you are planning to buy a new one and you want to free up the garage space, you could donate it to charity and avoid all the hassle. Look for a charitable organization that is eligible to accept car donations so that you can avail a car donation tax deduction.

If one donates a car to a charity, one does not only have the chance to avail of a tax write off; one can also help that charity in its mission to help the less fortunate. It is like hitting two birds with a single shot; one can help others while getting something for oneself.

It is very important to ascertain whether a charitable organization is eligible to accept such donations. One can only get a car donation tax deduction if the car is donated to the right charity and if the donor goes through the prescribed process as required by law.

A donor of car donations must ask the IRS for necessary documents to determine and validate the tax exempt status. The eligibility of the receiving charity must also be confirmed before any transaction should take place. If one donates a car to a charity that is not allowed by the authorities to receive such donations, then one will not be eligible for the tax deduction.

There are also certain paper work that needs to be accomplished before one can avail of the car donation tax deduction. There are charitable organizations that process their donor’s car donations and give them tax deductible receipts, and even help out with the whole process if the donor needs it.

Donors need to have a written acknowledgment from the charity and to file this with their tax returns for them to avail of the car donation tax deduction. It is also very important to keep car pictures and all the pertinent documents and receipts so that they are handy when need arises.

It is always much better to file your taxes when you know you will get a big return. If you have an old car you are no longer using, consider donating it to receive an additional car donation tax deduction. You can easily find car donations that are helpful to various charity organizations.