How to Make Car Donations to Charity

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By LEJockimo
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Car donations to charity can benefit both the donor and charity.

Car donations may be on the decline in this tough economy, but they can be a boon to both the donor and charity if you follow these steps.

Difficulty: Moderate

Instructions

Step 1

Car donations should go directly to the charity, not through a third-party. Middleman car donation groups often take a huge cut of the profit, leaving your charity with lots less than you intended. This cut can be so bad, Charity Navigator.org recommends that if your charity doesn't accept car donations, donate your car to another worthy cause that does.
Step 2

Drop your car donation off at the charity so they don't waste their donated resources paying to move your car.
Step 3

Car donations require that the title be properly transferred. If the charity you're donating the car to wants to skip any of the paperwork, take your car donation elsewhere. Without properly transferring the title, you're still liable for parking tickets - or worse - that may happen with the car after you donate it.
Step 4

Make sure the charity receiving your car donation is a 501(c)(3) organization. That should ensure that your car donation is tax-deductible. If you do take a tax deduction on your car donation, make sure that you value the car correctly and fill out all the necessary IRS paperwork.

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