Automobiles are the prevalent means of traveling across distances and the coming of vehicles have greatly revolutionized communication between distant places and it is possible today to travel across continents, over oceans and seas, from one part of the world to another only with the aid of vehicles. Cars are responsible for transportation on land and in recent times, car donation has emerged as a prevalent practice. In the United States of America , especially, car donation is a common and widespread practice. The act of car donation refers simply to the means by which unused cars in good working condition are given up by their owners to charity organizations which in their turn provide a variety of benefits. One of the most important benefits provided by these charitable donations is that they offer various tax benefits to the various car donators. Such a process has been popularly termed by critics as ‘tax shelter'. In fact it has been estimated from current statistics that in the United States itself, about 7 lakh tax payers were able to conserve about $654 million by means of tax saving through car donations.

It is necessary to keep in mind that one must study all the nuances thoroughly before donating a car. In this case, it must also be mentioned that not only cars, but even heavy vehicles like trucks, boats and trawlers are also accepted for donation. Once an individual decides to donate a car, the first and foremost thing that he should do is to collect information regarding the various charitable organizations that accept such car donations. There are various websites on the internet itself which provides the names pf various similar charitable organizations which offer these facilities. Here it is significant to mention the authority of the Vehicle Donation Processing Center Inc. which is the central organization responsible for presiding over such matters related to car donation and it is kind of mediator between the donors and the charitable trusts facilitating the process of donation. The donated car is auctioned in due course and is sold to the highest bidder. Once the car donation procedures are complete, a towing company car will arrive to pick up the vehicle to be donated. It is necessary to keep in mind that the donor must keep aware of the IRS guidelines and in this case if the vehicle is sold at an amount below $500, then tax benefits are available form the estimated sale price of the car as demanded by the owner.