Do you want to generate good karma and simultaneously set up a healthy tax write off? Donating your used car to charity can help out people and need and lighten your tax bill. Selecting the right charity for your donation and learning how the process works can be a daunting task but with a little bit of patience and due diligence you can complete the donation without stressing all that much.

Instead of scrapping your automobile or driving your car into the ground think about the people who lives you can tough by donating your vehicle. Whether you want to help out kids, senior citizens, or animal welfare organizations you can make a big difference with one simple, kind act.

Be Careful When Transferring Your Titles

Ensure that you have the title of the car you intend to transfer to move the process along smoothly. If you currently do not have the title in your possession visit your location Department of Motor Vehicles agency to pick up a copy of the title. You can also apply for a title online for a fee if you want to go the convenient route. Date and place your signature on the title to release your car to your charity of choice. Make sure to report the sale to the DMV and never leave the title blank as this can lead to fines and parking tickets being written up under your name. For tax purposes, be sure to hold a copy of the title to in case the IRS has any future questions about your car donation.

Complete the Proper Tax Paperwork

If the car being donated is worth less than $500 or the charity decides to use the vehicle instead of selling it you can report the car as fair market value to the IRS. Consult the Kelley Blue Book or similar guide to find the value of your donated car to report to the Internet Revenue Service. Cars worth more than $500 require you to report to the IRS how much the charity received for selling the vehicle. Ask for a receipt from the charity so you can claim a deduction on your donation.

Choose Your Charity Wisely

Unfortunately, some less than scrupulous individuals attempt to cash in on the general ignorance surrounding the process of donating your car to charity. Use the internet to find a legitimate charity which can accept your donation. Your preferred organization might not accept cars so do strict due diligence to find organizations without a short drive and follow up with an in person visit.Ensure that the group can receive tax deductible contributions by asking the organization to send you an IRS Letter of Determination. If you patiently sift through different charities you can find an organization which vibes with you. Patiently select a group of people you trust so that you good about offering the donation.

About the Author: Kelli Cooper is a blogger and car enthusiast who can help you through the process of donating your car to charity.