Donating a car can qualify you for a valuable tax deduction. Car donations are regulated just like any other charitable contribution. Generally speaking, if you donate your car to a qualifying organization then you can claim a tax deduction equal to the value of the car. While your tax deduction probably won't save you as much money as you would make if you sold the car, it may be enough to avoid the hassle of selling the car, and you get the benefit of making a donation.