Charities are always in need of good vehicles and donating it to a charity is certainly going to help out a non-profit.It is certainly better than donating a pair of nitrile gloves, since it will help you to get some reasonable tax deduction when the year ends. There are many commercials out there which ask for auto donations for charities, but which non-profit group should it go to? How do you proceed with it? How much will it benefit you in terms of taxes?

Firstly you have to understand that most charities will receive any vehicle may it be cars, motorcycles and even boats. Some might even receive vehicles that are not in running conditions to either repair them or to sell the parts to meet their expenses. Charities can also auction the vehicles to raise funds.

There are three major steps that should be followed when donating a vehicle to the charity: firstly find a good organization, secondly transfer the title of the vehicle and thirdly follow up to ensure you get a receipt after you have sold the vehicle. After all of this you just have to file the IRS Form 8283 and you will get the tax deduction.

Also while donating the vehicle ensure the vehicle is directly received by the charity. Sometimes charities may opt for middle men which are for-profit companies. They pick up the vehicle and charge a service fee which can be as high as 50 to 90% of the vehicle’s value.

Also never leave the title blank when the vehicle is being picked up. Sometimes charities may ask for a blank title, which is helpful in case the charity would like to auction it and this way the auction winner can directly register the car on his/her name. This saves the charity from paying the registration fees. But this also means that you are still responsible for the vehicle until the new owner gets it registered. It’s always good to sign the title right away to avoid any future problems.

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