Wondering what to do with that old car that is just sitting around? Looking for a tax deduction? Well then you should consider car donation! Car donation is a great way to benefit a needy charity, while benefiting yourself and possibly saving some money on your tax bill. I'm going to attempt to lay out car donation as simply as possible: the process, the benefits to the charities, and the benefits to you, the donor. Step 1: Determine what charity you would like to donate to. Anyone will do, but they must be a qualified organization. This means that they have been approved by the IRS as an organization that qualified for tax-exempt status. A fantastic search tool is located at http://www.irs.gov/app/pub-78/. Step 2: Determine what the fair market value is of your vehicle. This can be a little bit tricky, as the IRS has some requirements that generally state that the amount of your deduction will be equal to the amount the car is sold by the charity. There are some exceptions to the rule, however. If the vehicle is sold for less than $500, and the fair market value was more than $500, then you still get to take the $500 deduction from your schedule A tax form. Step 3: Contact the charity that you have chosen and have them come pick up the car (most will). Make sure that you get a receipt of donation, and if they anticipate that they will be selling the car before significant use, they will need to provide you with the sales price, sales date, and other important information. Step 4: Feel good about helping out a charity, and enjoy the extra space in your garage! To learn more about car donation, please visit Donate My Car [http://www.donate-my-car.com]. Article Source: http://EzineArticles.com/4409606