Tips For Donating A Car To Charity

Driving a car nearly into the ground makes great financial sense for those who like the freedom of life without a car payment. Today's engines run longer than ever, so cheers to all those who push it to 200,000 miles and beyond.

But when it's time to let your old blue or trusty red go, you'll want to make sure they head to a good home.

Donate it to charity to feel great about your favorite ride, and get a great tax break. Here's how to make it happen.

• First of all, look around for a reputable place to donate it to.

Don't just trust craigslist or anyone else who says they'll give it to charity. Research and find a reputable firm first. Check online for the best charity recipients for your ride.

Here are more tips, courtesy of charitywatch.org.

• Ask if the charity accepts car donations directly, without involving a third party. If possible, drive the vehicle to the charity instead of using a towing or pickup service. This will allow the charity to keep the full amount of any proceeds from selling the car.
• Make sure the charity is eligible to receive tax deductible contributions. Ask for a copy for your records of the organization's IRS letter of determination which verifies its tax exempt status.
• Be sure that you get a receipt from the charity for your car donation.
• Be aware that non-cash donations are one of the most common triggers to an audit by the IRS, so you'll want to document the value of the car and keep records of it.
• For more tips on getting a great tax deduction for your donated car, click here.