People generally enjoy the act of donation, they like the knowledge that items which they are no longer able to use can be give to someone who may be less fortunate to use and enjoy. Donating clothing, toys or furniture is not difficult, in fact, most of the time it is one of the easiest things to accomplish. Car Donation isn't any different. While this is a fairly new concept, donating a car accomplishes exactly the same outcome as donating clothes. The following information will help you with this process.

1- If you are considering car donation, it is very important to be sure that you are donating to a charity or cause that is approved by the government. The best way to be sure is to ask to see the 501(c)(3) certification that is given by the government to an organization that is given tax-exempt status.

2- Once you decide on the charity that you want to give a car donation to, you need to get a "blue book" price for your car. This is will give you the fair market value of the vehicle that is being donated.

3- When the car donation is completed, you will get a receipt from the charity that you donated to.

This should have the following information:
The make and model of the car
The year of the car
The date of donation
The "blue book" value

If this information is not on your particular receipt, make sure to have it added, as the government will not allow you to claim the car donation on your taxes if this important information is missing.

4- In the past, you were given the fair market value of the car that was donated as a deduction on your taxes for that year. However, that has recently changed. If you donate your car to a charity that sells it, the price it is sold for is the amount that you are able to deduct on your yearly taxes.

5- It is important to remember that as with anything that you decide to donate as opposed to selling, the act of a car donation has important benefits for all involved. You get to do something that benefits you and the charity. The charity in turn, gets to help someone while at the same time earning money to keep their programs going and the purchaser of the car gets transportation to and from work. This is truly a win-win situation all the way around.