Donate a Car

If you donate an old vehicle to a charitable organization, it takes the car off your hands and earns you a tax deduction. However, before signing your vehicle over, you should first check if the charity is eligible to receive tax-deductible contributions. You can check an organization's tax-exempt status with the IRS. Watch out for organizations that imply government recognition but are not approved. The amount of your tax deduction will depend on what use the charity makes of the vehicle. If the charity makes some significant use of the vehicle, your tax deduction will be higher than if they just sell it. The resale amount that the charity receives for your vehicle is the amount you can deduct from your taxes.