It's also important to remember that you can only take a charitable deduction if you itemize your deductions. So, before you give away your car, just make sure you've done the math and it makes sense for both you and the non-profit.
Pick a Charity
It's very easy to give money or an in-kind donation to a non-profit. The hard part is making sure the non-profit deserves your gift and that you are confident the organization is spending its resources wisely.
The first step is to identify a charity that engages in work that is meaningful to you. For some, that will be helping to feed poor children; for others it will be the local animal shelter, and for others still it will be their religious institution.
There are thousands of non-profits to choose from. The most important thing to verify is that donating a car is possible with the charity. Most of the time that means it must be registered with the IRS as a 501(c)(3) nonprofit.
Ensure You Can Donate Your Car
Once you've identified a couple non-profits in the area you'd like to support, find out if they accept car donations. Not all non-profits are equipped to handle that type of donation.
If they do accept cars as gifts, you can then narrow down the list. You can do this by checking each organization's Charity Navigator rating. You can also look up their tax filings on Guidestar, where you can see their financial profile and how much their highest paid employees are compensated.
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