Donating your car to charity is a win-win – you get to enjoy car donation tax deduction and do good to the community. However, it is important to follow the right procedure while donating your car to charity and understand the car donation tax deduction implications. For that, thorough knowledge in order to obtain the proper knowledge is necessary. Since 2004, the laws limit the tax deduction to the amount the charity obtains by selling the donated car.

Shortlist a few charities that accept car donation, preferably ones that are into the kind of good work you support and believe in; this would make you feel good about donating your car, and not just for the tax deduction. The next step would be to find out if they directly accept car donation. Involving middlemen often eats away a huge portion of the revenues.

You must remember that donating your car to charity doesn’t automatically imply car donation tax deduction. If car donation tax deduction is the reason you wish to donate your car, you need to…

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