Step 1: Understand the rules Step 1: Understand the rules
 

Vehicle Donation Step 1:
Understand the Rules Understand the Rules

The first step in car donation is to understand the government rules on vehicle donation. The first step in car donation is to understand the government rules on vehicle donation.

A good place to read the government rule on car donation is IRS Publication 4303, A Donor's Guide to Car Donations (PDF format, available on the IRS's website at www.irs.gov ). This guide outlines some important rules regarding car donation. For example, one important rule states that car donation must be made to qualified organizations in order to be tax deductible.

Step 2: Determine the value of your used car
 

The second step in vehicle donations is to determine the value of your vehicle.

You should take many factors into consideration to estimate the value of the car. Y Many used-car buying guides contain step-by-step instructions to make adjustments to the value of a car for accessories, mileage and other indicators of its general condition.

Although the blue book might help you determine the value of your car, you should read IRS Publication 526, Charitable Deductions and IRS Publication 561, Determining the Value of Donated Property and to see what your car really worth.

Step 3: Find a charity to donate your vehicle Step

The third step in car donation is to find a charity organization to donate your car.

If you are associated with any charity or non-profit organizations, that organization might be your choice for donating your car. Otherwise, check the Yellow Book or search on the Internet to find an organization to which you feel like donating your car.

After you have identified a candidate, you should review IRS Publication 78 , which is a list of organizations eligible to receive tax-deductible charitable contributions. After you have identified a candidate, you should review . You may also verify an organization's status by calling the IRS Customer Account Services division for Tax Exempt and Government Entities at (877) 829-5500 (toll-free). This document is also available on the IRS's website and it's searchable.

Make sure the candidate charity is eligible. , you might not get your tax deduction!

Step 4: Make your donation Step
 

The last step in car donation is Donating the car!

Depending on the amount you are claiming as a charitable contribution deduction, you may need to get and keep certain records and file an additional form to substantiate your charitable contributions such as a written acknowledgment from the charity, Form 8283, a written appraisal, etc. Please refer to IRS Publication 4303, A Donor's Guide to Car Donations for details.