There are many ways you can offer assistance to charitable organizations. Volunteering to help at homeless shelters, soup kitchens, and other worthy causes is a great way to give back to your community. If you are in a positive financial situation, you can choose to donate funds to groups that participate in helping others. You can even donate used clothing items and household goods to help causes such as the Red Cross and other emergency support services. Alternatively many organizations accept car donations as well. So before you have that old car towed off to the junkyard, consider donating it to a local charity. If you are unsure about how to donate your car, this page will outline some key points to make your donation even easier. http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=158

Aside from the obvious, helping needy causes, there are many reason why people donate cars. For example, many times when car buyers decide to trade in an old clunker, the trade in value is not as much as they had anticipated. Therefore, they may actually benefit more from the tax deduction for their donation, than from trying to trade it in for their new car purchase. What about the car that private seller can't even give away? For those that have attempted to sell an old car, you know that it can be an exhausting and time consuming task. By donating that same vehicle, sellers can take advantage of the tax deduction and save a lot of time with potential buyers. Whatever your reason, donating to a charity is an excellent way to dispose of that old car that is just taking up space in your driveway. When considering car donation, you must first ensure that the organization you are planning to donate it to, is one that qualifies for the tax deduction. http://www.car-donation-scams.com/irsadvice.htm

The first step to donating your car is to find a charity that accepts vehicle donations. http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=158 To do this you can first inquire within your local area to see which charities accept vehicle donations. By calling and speaking to a representative from the organization, you can find out their guidelines for donation, and ask questions about the services they provide to make sure that you support their cause. Once you have found a charity, the next step is to ensure they are a qualifying organization. This will allow you to use your donation as a tax deduction at the end of the year.

To be considered a qualifying charity, the organization must have a 501 (c) (3) tax status. Many organizations may claim they are a non-profit company, however, their status is imperative for you to receive the deduction on your taxes. There are two common types of non-profit statuses, 501 (c) (4) and 501 (c)(3).

• 501 (c) (3) is classified as a charitable organization that was established for the sole purpose of the betterment of the community. This tax exempt status is available only to those organizations that provide a service to the community as opposed to turning a profit. Donations made to groups that are exempt within this status are eligible to be tax deducted. http://www.wisegeek.com/what-is-a-501c3.htm
• 501 (c) (4) tax exempt status is for an organization that is a non-profit group that is in operation exclusively for the intention to promote social welfare. In other words its primary function must be to social improvements, and the general welfare of the community. These organization are permitted activity such as lobbying without risking their tax status. This status is no able to receive tax-deductible donations. http://www.boardsource.org/Knowledge.asp?ID=3.173

Once you have chosen a charity, you are ready to prepare the vehicle for donation. To do this the first thing would be to empty your vehicle of all personal effects. Once you donate the car, chances are that anything in it will be disposed of. Secondly, depending upon what the organization will be doing with the car, you may want to clean it. Some charities may keep the car and use it for their organization, or they may in turn donate it to a needy family. In this case, preparing the car could include vacuuming it out and changing the oil. Other organizations may sell the vehicle at an auction or charity event, and by presenting it in the best manner, you will be helping them to get the most from your donation. Lastly they may simply sell it to a recycling center.

Once your vehicle is prepared, you'll need to establish a fair market value for the car. Since 1995, the maximum amount that can be claimed as a tax deduction is $500.http://www.bankrate.com/finance/money-guides/donating-a-vehicle-to-charity-1.aspx If your car is valued in excess of $500, you will need to prepare a IRS Form 8283  and submit it when you file your taxes. http://today.msnbc.msn.com/id/26625209/ns/today-today_technology_and_money/When estimating the market value, you may consult the Kelley Blue Book or NADA car value guides to determine what the car is worth. Be sure to take note of its condition, the mileage and any additional options that the vehicle has that would affect its value. Once the charity sells the vehicle, they will need to provide you with a copy of the receipt for you to use when claiming the deduction. It is imperative that you accurately value your car, as the IRS has increased audits to prevent fraudulent deductions.

Properly transferring the vehicle to the organization will depend on which state you live in. Each state has different registration guidelines that must be followed when transferring ownership of a car. Consult your local Department of Motor Vehicles or your state's web site for more information. Do not allow the car to remain registered in your name. When the vehicle is sold, this will only cause complications. Once you donate the car, have all relevant information transferred to avoid problems in the future. http://www.car-donation-scams.com/irsadvice.htm

There is nothing worse that thinking your donation is going to a worthy cause, only to find out that you have been the victim of a scam. Before donating your car, be sure to research the organization you are donating it to. They should be able to provide information regarding what causes your donation will support, the process they use to dispose of or sell the car, and other relevant information for the donation.

Middlemen. There are many organizations that accept car donations. However, there are also several that do not. In these cases, there are agencies that have been established to accept the cars on the charities behalf, sell the vehicle, then return the profit to the charity. Understanding that not all of these agencies are scams, there are a few that have given the rest a bad reputation. When possible, avoid using these companies. Most times they take a large percentage, up to 50%, for their services. When the sale of the car is $500, that is a considerable amount of money that is not going to benefit the charity. However, if there are no other options, and you are determined to donate your car to a specific organization that does not accept car donations, research these agencies to find one that is trustworthy, has a proven track record of service and charges reasonable fees. http://cardonationreview.com/car-donation-scams/