Car donation is the practice of giving away no-longer-wanted automobiles or other vehicles to charitable organizations. In the United States, these donations can provide a tax benefit.
In the United States
Some critics have claimed that car donations are essentially a tax shelter
. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread; in 2000, 733,000 U.S. taxpayers reduced their taxes by $654 million.
Although advertised as an easy way to dispose of an old car, donors need to fulfill certain post-donation requirements to qualify for the tax deduction,
[[https://www.irs.gov/pub/irs-pdf/p4303.pdf Internal Revenue Service Publication 4303, A Donor's Guide to Vehicle Donations]]
such as obtaining a written acknowledgment of the car's subsequent sale by the charity,