1) Today Car donation is a hot news item for one primary reason: the tax deduction you can earn for donating your car and many people are interested in donating their car for exactly this reason. Remember, when filing your tax return, be sure to deduct the fair market value of your car. Claiming the full value of the car is not acceptable.

2) Also, be sure to keep good records when claiming a tax deduction for your car donation. Store all papers relating to the car donation, and a copy of its fair market value, in a secure place. And keep it there for the future.

3) If you are seeking a car donation charity than can make full use of your car donation, you have to do some research, this will save you time and money. Contact the IRS, they recommends that it you are considering any of the car donation programs, you contact the people running it and get a clear answer as to whether they are charity officials, or private group acting for the charity. Do your research before you donate your car

4) Research.. What are you looking for in car donation services? You may want to avoid charitable organizations that have high overhead costs for their car donation programs. The high costs mean less money for the charity's programs and services. This is not what we are looking for so again take your time and do you research.

5) Once you decide on the charity that you want to give a car donation to, you need to get a "blue book" price for your car. This will give you the fair market value of the car that is being donated.

6) Many of the car donation programs out there are run by for profit used car dealer/fundraisers, which keep the largest share of the proceeds from your car donation, the charity ending up with a measly 10% or 20%. Even some well known respected car charities are not licensed to legally process your car donation in some states.