1. Donate Car To Goodwill: How to Process Car Donation
Easier
Donate My Car To Charity Services
The act of giving away used or old vehicles to the underprivileged is a common practice in
the United States. Choose a Bona Fide Recipient
When you have finally decided to donate your vehicle instead of sell it, you need to pick a
recipient. It must be a group that works in the religious, education, or charitable sector. You
cannot just pick any group because it must belong to the list of the charities recognized by
the government. You can look it up in IRS? Cumulative List of Organizations. Pick one from
the list you want to be the recipient of your car. After you have picked a recipient, you can
drive the vehicle straight to the organization. This way, the group will be able to get the
complete proceeds of the vehicle. However, if you find this too complex or if you are busy for
the whole thing, you can approach a donation service firm to process in your behalf.
Choose an Intermediary Agency Carefully
Assuming that you have chosen an intermediary agency to process in your behalf, you need
to pick the a trustworthy firm so your effort will not go to waste. The key here is to help the
underprivileged in the community and you can do this if you give a large portion of the
proceeds to them.
Goodwill Car Donation
Value Your Car Properly
When it comes to availing the tax consideration by the government, you can benefit from this
practice if you value your car honestly. To avoid undervaluing your vehicle approach an
appraisal service firm. You should also make sure that you do not overvalue because the IRS
does not want this. If you get the right value, you can deduct the right amount later assuming
that the vehicle will be sold or used by the recipient.
Complete Your Paperwork
Lastly, you need to complete the form so you can start availing tax breaks. You must be
honest when you file for tax return. Remember to itemize your tax return and follow the
guidelines provided by the IRS when filing. Ask for an acknowledgement from the recipient
especially when the value of the car is more than $500. This is so the IRS will know if the
deduction is from the proceeds of the auction or if it is a result of the recipient's decision to
use the car.
Old and used cars in America can be donated to charity. It would appear car donation is as
popular as selling used cars. Charities can use the cars for their activities or they can also
sell the car to raise funds for their organization. What it does to the individual who donated
his or her car to charity is he or she is given tax breaks. The government recognizes the act
of goodwill and so it offers tax consideration to citizens who engage in car donations.

2. How to Participate in this Activity
If you own a car that you no longer need, you can give it back to a charity. You can also
contact a local agency that handles car donations for non-profit organizations to help you
with the donation. You can still benefit from this arrangement because you are granted tax
breaks for engaging in this practice.
The key here is to donate the car to a charity organization recognized by the government so
you can avail tax breaks provided by the law in response to act of donation. If you are new to
this practice, there are also agencies which act as the middle man that will handle all the
paperwork in your behalf. These agencies will help you process everything even auctioning
of the car and giving the proceeds to your chosen non-profit group.
They will also help your process your claim so you can properly avail for the tax
consideration provided by the law. But you must be careful with these firms because some
are acting as middle man but they don't really give a huge portion back to charity. As such
you need to select who to work with. Be wary of those agencies that only give 30-50 percent
of the proceeds to your chosen charity.
Benefits of Donating Cars to Charity
As discussed above, the benefit of donating cars is tax considerations. The government will
allow you to place the fair market value of the car as a deductible. The amount to be
deducted would depend on what the charity does with your vehicle.