Choosing

To ensure that the maximum percentage of your donation goes to charity, do research on charities that accept cars. Intermediary organizations claiming to donate profits to charity often keep a high percentage as administrative fees.

Donating

There are several ways that a car can be used by a charitable organization. Some organizations sell these used cars for a profit, which is then used for those in need. Others fix each car for use by someone in need. Before you donate, decide which system you prefer.

Delivering the Car

Driving the car to the charity drop-off location is the best way to donate. It allows the charity to save on towing costs, which always come out of their administrative overhead. A driven donation is worth more.

501 (c) (3) Organizations

If tax deductions are a goal, it is important to ensure that the charitable organization is a 501 (c) (3). Donations to for-profit charitable organizations are not usually tax-deductible. The IRS's guidelines on car donation are essential reading to answer any questions.

Valuing Your Car

The most important step in proper car donation is correctly valuing your car. You may either deduct the value for which the charity sells your car or use the fair-market value listed in the Kelley Blue Book of auto values.

Source:

Car Donation Facts

Resource:

IRS Car Donation Guide