If you’re considering a charity car donation, I’m going to summarize some of the facts you should know. You can receive a nice IRS tax deduction for your old or used car and help someone in need in the process.

It’s called a car donation or charitable car donation when you give a charity your vehicle: car, automobile, truck, ATV, RV, plane, or any other vehicle that may or may not be in usable condition. In the US, charitable vehicle donations provide a large tax benefit to the donor and are rapidly gaining popularity.

First, you want to know the mission of any charity you’re considering. If you have a specific car donation charity in mind, do some research on it, especially if you’re unsure of the charity’s reputation. There are many national and local charities that advertise in newspapers or on television and openly advertise that they are seeking car donations. You’ve probably seen some of these, but are they your best bet?

Car donations are sometimes used by charities in their daily charitable activities, sometimes to transport people. Maybe they can use it to transport people in need to medical appointments, social worker appointments, hospital tests, etc. More often, however, vehicles will be sold at auction or off your car lots to raise money for charity programs or your general fund. Yes, it is not common knowledge that many charities have their own car lots. Many Goodwill Industry stores have their own.

Many people choose to donate their used and unwanted cars to help others. If you buy a new car or own a car that doesn’t run, you may want to consider donating the car, truck, or other vehicle. You can also donate boats, RVs, ATVs, planes and other vehicles, or even real estate, depending on what your charity accepts. Your donation is tax deductible, which helps both you and the organization you donated the vehicle to.

Day after day, charities provide needed services and support to people in communities across the country. While some may receive government grants or private donations, this is never enough to serve the many causes they pursue. Charitable car donations are a planned part of the nonprofit’s budget. These vehicle donations can make a difference in the type of services they can offer. So if you donate vehicles you will help these organizations continue to function

Simply put, car donation means acquiring old cars from donors and donating them to charity. There are car donation companies that are intermediaries or links between the donors and the people who benefit from these donations. They are a great help in funding charities. Some companies even help organizations that don’t have their own charity programs. Car donation companies can auction the donated car or other vehicle on the market and the money is given to the charities or the car can be used by the charity or sold on their used car lot.

When you donate your car to charity, you receive a charitable donation IRS tax receipt. Vehicle donations when made to a bona fide and reputable charity are tax deductible. The IRS allows the donor-taxpayer to claim a tax deduction on the estimated value of the vehicle up to $500. The donor of the car or vehicle must have a title, so make sure you have it on hand when you start the process.

Be sure to ask if the charity handles car donations: Have your own charity car donation program, or pay an outside company to do it. If the for-profit business handles car or vehicle donations, find out how much money the charity receives from the sale and how much will go to the for-profit business.

You’ll see the car donation program in almost every major city in every state in the US, including California, Massachusetts, Minnesota, New Jersey, New York, and Michigan. There are no laws that prevent charities from accepting these types of donations.

Some of the car donation charities you may see include: Target, Purple Heart, Kidney Foundation, Salvation Army, Goodwill Industries, and various cancer organizations.

Either way, you’ll benefit greatly from donating your car to charity, both by claiming a nice car donation tax deduction or benefit and by helping charities continue to operate so they can help people in need.