Have you ever wanted to donate a car to a favorite cause or charity? This is a great way to serve two purposes, the charity receives a donation that can be used in a number of ways and you get a tax deduction as well the satisfaction of knowing that you were able to help out in a meaningful way. The following information will help you determine if your vehicle is worthy of donation and, if so, how to proceed with the process.

1- If you are contemplating the donation of a vehicle to a charity, it is important to be sure that you are dealing with one that meets the governments' criteria for a charitable entity. These organizations will be registered as a 501(c)(3) or be a church that has also been qualified by the powers that be. This is the only way you will be able to claim the donation on your taxes.

2- Once you decide where you want the donation of your car to go, the market value needs to be determined. The easiest way to effectively determine the

value of your car is to utilize the Kelley Blue Book, this is the same book that dealerships use to evaluate the price of a car when it is being bought and sold.

3- If you want to donate a car that has a value over $5,000, then it should be appraised by a professional that is certified in vehicles. This appraisal may be needed if the government should ask questions later.

4- You will need to get a receipt from the charity for your taxes. This will need to have the name of the charity that will be receiving the vehicle, the date that the car was donated, the tax ID number and the pertinent information for the car as well.

5- Most charities will use donated vehicles to help people get transportation back and forth to work. They sell the cars to clients, the price that they get for the car will be what you will be able to claim on your taxes, not what the car is actually worth, although you will need to know both numbers. For example, if you want to donate a car that is "blue booked" at $7,000 and it is sold for $2,500, you will only be able to claim the $2,500 on your taxes.

6- While you may not get the same amount of deductions on your taxes as you would in cash if you sold it out right, you will be able still be able to help people who need it while saving yourself the time and trouble that is involved with selling a vehicle on your own.

7- Don't forget to let the DMV as well as your insurance company that you no longer own and are no longer responsible for the vehicle. They will be able to help you with disposing of the license plate, if this is an issue in your state. Be sure to save the receipt that is given to you, as will as a completely filled out Form 8283 from the IRS.