Donating your car is a great way to help out worthy causes. Your car donation is fully tax deductible, as long as the charity is a registered 501(c)3 organization. It is best to check with the charity or your tax advisor to ensure you are entitled to a tax deduction.

Even though some of the car donation tax laws changed a few years back, this is still a great way to help yourself and others.

The IRS has now removed the need for an individual to determine the value of your vehicle as you are now allowed to deduct the sale price. Remember, this is the sale price that the charity sells your car for! If they dont sell the car and use it instead for their valuable work, you are entitled to deduct the market value of the vehicle.

If you do choose to make a car donation, you will find that the process is very easy. Organizations that offer to take vehicles generally have information available online or over the telephone and in some cases you can fill out online forms to start the donation process.

On the other side of the donation process, it is vitally important for charities who receive such generous gifts to acknowledge the donors as soon as practicable - immediately if possible but never longer than a few days.

Why? Being prompt is being courteous and your donors need to feel appreciated. A personal visit or phone call should be followed up by a well worded thank you letter.

Remember, people will stop giving if they dont feel that their gift is appreciated.

So, if you have clear title to your vehicle and feel you wish to give something back to your community, consider car donation. Your generous gift will help people far less fortunate than yourself.

Author is the webmaster of Car Donation Arena, a site dedicated to providing information, articles and up to date news on car donation

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