After Buick Car Market Part Regal

Charity car donation programs are growing and it's easy to understand why. Auto donors can get rid of an unwanted vehicle, support their favorite charity and get a tax deduction. However, warns Guidestar in "All Car Donation Programs are Not Created Equal" (August 2004), "vehicle donations to charity don't always work out that way."

Donate Auto Only After Doing Homework

For a potential vehicle donor, the most important factor is often the tax deduction. First, be sure the charitable organization is designated by the International Revenue Service (IRS) as a 501(c)(3) organization. Check a website like guidestar.org to be sure the nonprofit organization qualifies. Certain other organizations may still be able to offer a car donor the appropriate tax deduction, but always verify ahead of time to avoid costly mistakes.

Car donors will only get the benefit of a tax benefit if they itemize deductions on tax returns and charitable donations are only allowed up to a certain amount. Check with a financial advisor or the Internal Revenue Service to address any questions or concerns.

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