In the US today it's possible to donate a vehicle (usually a car, but it can be a truck, RV, boat or any form of transportation) to selected charities, and in return be able to claim a tax deduction on a personal income tax return. For values that are less than $500, the value of the tax deduction comes from the donor's own estimate of the car's value, even if the charity receives less money for actually selling the car. In 2005, the IRS rules were tightened to prevent donors from pumping up their deductions. Under the new rules, the deduction depends on how the charity disposes of the vehicle.

If your junk or used automobile, truck, boat, motorcycle, RV or aircraft is no longer of use to you, it can still go a long way toward supporting the charity of your choice. Make sure you know where the title is when you email about a possible donation. Best of all, by not selling the car yourself, you don't have to worry about strangers calling you to get information about where you live, or coming to your house to see the car or other vehicle.

Repairable used car donations or other vehicles can be accepted provided the vehicle is repairable for less than what the charity could sell it for. There are a few exceptions in the new tax law compared to the old tax law, regarding the fair market value section, for example, you may base your deduction on the vehicle's fair market value if the charity ends up selling it to a needy individual at a discounted price or if the charity uses the car as part of its mission instead of selling it at a fair price. Charitable car donations are given to the selected recipients directly or they are sold and the money is given away as part of the charity function.

A charity organization car donation is usually picked up within one or two days of submitting the donation form. The amount you list on IRS Form 1098-C, "Contributions of Motor Vehicles, Boats, and Airplanes" will be under the gross proceeds of the deductible donation. And if you don't plan to deduct the vehicle donation on your tax return, no further action is needed. There are similar car donation tax laws in other countries.

You may have a junk, used or old vehicle sitting on your property or on the street that you don't use very often or at all. Cars or other vehicle that are not being used make good donations, enabling many less fortunate people to have a good means of transportation. Donating rather than selling is a good idea because there is no need to pay for any advertising, no loss of privacy and possible security risk, and no need to pay for vehicle registration, insurance or repairs to keep your car in running condition while you wait for a buyer.

Charities look at car donations from both the point of view of the donor of the car, and of the charity receiving it. The vehicle you plan to donate must not have any major parts missing. Also the donor is responsible to an extent to determine what the value is of their car donation.

One of the exceptions to the new IRS regulations allows donors to still deduct the fair market value of their vehicle, if the charity materially improves the car or vehicle. Regardless of the laws, it's a very good idea to protect yourself by having the proper insurance coverage on your vehicle until it's donated. In wear and tear, minor repairs and breakdowns, an average vehicle owner could easily spend $3000 per year.

Don't let your unused vehicle go to waste just sitting around gathering rust. It's easy to donate your car online to individual charities or to car donation programs that work for charities. Some charities that run their own program instead of hiring a car donation program middleman are discriminating about which vehicles they accept, repair and materially improve. They sell most of the donated vehicles at retail.

Also, if your car or vehicle is running, consider dropping it off at the charity yourself to save the organization from paying for towing costs. After making a connection by email or phone with the charity or charity program, just fill out the forms they give you and have them ready for the driver when he/she comes to pick up the car.

There are many charitable car donation programs to choose from today including: Purple Heart, Kidney Foundation, Our Lady of the Wayside, Salvation Army, Goodwill Industries, Make a Wish Foundation, American Red Cross, and blind, Jewish and cancer charities among many others.

From classic cars, antique cars to junk or salvage automobiles, your donated car may earn you a nice tax deduction, and help make a big difference in the lives of others. Choosing the best charitable car donation program or best charity for your car donation can be overwhelming sometimes and you want to make sure your choice is the best and right one for you.