Donating Your Car to Charity

- Donating a car is an excellent way to support a charitable organization while still reaping an economic benefit through tax deductions. All donors should be aware that tax deductions for used automobiles are available to those individuals who itemize deductions on their tax returns. Here are some tips to consider when deciding whether to donate your car to charity.

- Do make sure that you are donating to a qualified charity. Tax deductions are available only for donations made to § 501(c)(3) organizations, which the Internal Revenue Service defines as groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals. To verify an organization's qualified status, contact the Public Charities Division at (617) 727-2200 ext. 2101, the Internal Revenue Service at 1-877-829-5500, or look for IRS Publication 78 in your local library's reference section or on the IRS website, www.irs.ustreas.gov/.

- Do ask the charity plenty of questions. Find out what the organization's mission is and how your donation will help them. Ask if your donation can go to a particular program or service that interests you or whether it can only be put in the charity's general fund.

- Do ask what the charity will do with your car. Some charities refurbish cars and give them to people in need. Others simply resell the car or sell its parts and use the money for their charitable purpose.