There are charitable organizations that help the poor and the less fortunate. And these kind of organizations rely mainly on donations and whatever cash and resources that they can raise through various activities. They accept donations, whether in cash or kind, and even car donations.

The practice of donating cars to charity has been there for quite some time but it was only recently when clear stipulations for car donation tax deduction were stipulated in the tax laws that were enacted in the recent years.

So instead of going through all the hassle of trying to sell an old car to free up some space in the garage to make way for a new one, one can now donate it to a charity that accepts car donations and be eligible for a car donation tax deduction.

By donating your car to charity, you can avail of a tax write-off and you can also help the charity's charitable activities in the process. With a single act, you can do something good for your less fortunate fellowmen and you can gain something for yourself in return, aside from the good feeling of having done something good.

The eligibility of the charitable institution to receive donations like cars and vehicles is very important when one is really keen on donating car to charity. A car donation tax donation can only be availed if a car is donated to an eligible charity and the donor undergoes the process and observes the procedures, as stipulated in the law.

Car donation donors can get the necessary documents from the IRS and can help them determine the eligibility of the target charity and the eligibility of a donor to avail of tax deduction. If a charity is not eligible to accept donations like cars and other vehicles, a donor will not be able to avail of a tax deduction.

And for one to avail of a car donation tax deduction, there is some paper work that needs to be done. There are charities that help with the whole procedure especially by processing the car donations made to them and give their donors tax deductible receipts.

A written acknowledgment from the charity is then needed to be filed together with the donor's tax returns for one to avail of the car donation tax deductions. And it is highly recommended that one keep pictures and all the necessary documents handy in case questions or problems may arise in the future.