You might be thinking of a good use for that old vehicle in the garage. You might have heard of car donation organizations but do not really know much about the program. Basically, a car donation requires you to give away an old vehicle so you can support a cause to help other people like kids in need, cancer patients, victims of abuse, and a lot more.

An old RV, van, truck, or car can go a long way to support charities. Aside form helping other people, you will be able to get some tax deduction for your act of kindness. Here are some basic concepts that you must understand when going thru a car donation:

Tax Deductibility

Most organizations who run a car donation program are tagged by the tax collection agency as a non-profit group so donations made to their group are considered as tax deductible. In case you end up giving your car to a for-profit organization, make sure that you will be getting some tax deduction. If you are not sure, check with your accountant if deductions to your taxes can be made.

Condition and Value of the Vehicle

You are the one who declares the value of your vehicle, and so you are also required to justify the value that you declared. You can visit some websites to determine the approximate value of your vehicle now. Take into consideration damages which will cost the organization when it tries to fix your car.

Know what percentage of the donation goes to charity

Check out different organizations to which you can donate your car. Make sure that the proceeds from the sale of your vehicle really goes to charity and not just to support the costs of the group.