by 
The Curious Bag
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Donating a car to charity often results in a positive transaction for both parties. However, you must follow strict Internal Revenue Service (IRS) guidelines in order to reap an economic benefit, although donating for other reasons is never a bad idea.
History
In 2005, the IRS changed the rules on one of the main benefits of donating a car, the tax deduction, due to abuse of the system. Currently, tax deductions for car donations are limited to the price of the car as sold at auction.
Types
Other than financial reasons, donating a car gives you a sense of self-satisfaction for doing something good and removes all of the headaches associated with selling a car.
Considerations
While procedures for donating a car vary from organization to organization, most will offer to pick up the car from you, according to CarJunky. In addition, some third party companies handle car donations to charities.
Tips
Donating a car to charity that uses it directly will help you get a higher-value tax deduction. A charity such as 1-800-Charity Cars provides automobiles to people who need transportation and estimates the value using a vehicle appraiser.
Warning
Deducting a car donation from your taxes requires choosing to itemize deductions instead of taking the standard deduction.
Source:
Edmunds.com; Does Charity Car Donation Still Make Sense Under Tougher IRS Rules?
CarJunky.com; The Benefits of Donating Your Car
Resource:
1-800-Charity Cars
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