Car donations are a great way to help a worthy cause. It is a good alternative to donating money, as it also helps you to get rid of an old unused car without the hassles associated with reselling it. Car donations can be made to special organizations that use the proceeds for charity work. The cars that are donated are sold and the proceeds are used for charity work. Some originations simply distribute the proceeds to other charity organizations.

Car charity donations are also a good way to get certain tax benefits while doing a good deed. Car donation to an approved 501(C)3 charity organization is tax deductible under certain clauses. These are applicable for all kinds of cars.

Cars that are donated need not be in perfect working condition as they may be dismantled and its parts sold. However, before donating, make sure that the donation program is a qualified, 501(c)3 IRS registered charity since only such programs are eligible for tax deductions. Information about such charity programs can be obtained from the IRS website or in the Publication 78 that is available at most public libraries. If the total donation is more than $500, then a separate form (8283) has to be filled. Donating a car for tax purposes requires itemized deductions on the personal tax return.

Some charity organizations are exclusively meant for children