Others use cars as teaching tools in educational programs. Still other charities give away or sell the vehicles to people with low incomes. Each of these is a valid way for a charitable organization to exercise its mission. Be clear about whether you are donating your vehicle directly to a charity or to an intermediary such as an auto action, car dealer or professional fundraiser . If the charity does not accept your vehicle directly, ask about the dollar amount or percentage that the charity receives.
Many dealers take only a small fee for the expense of picking up and disposing of the vehicle.
Other intermediaries, however, negotiate terms which leave the charity a tiny percentage of each automobile donation. To be deductible as a gift to charity, used cars must, in actuality, be given 'to' the charity, or, at least, an agent of the charity. Make sure of the title transfer . Reputable charities will often take possession of the vehicle in their own name. And do not forget to cancel your car insurance.