1. Is donating my car to a charity or non-profit really worth it?
It will depend on your tax situation and what your vehicle is worth. It will also depend on if you want to spend the time and effort trying to sell your car. If your car is worth $1000 and you do not want the hassle of selling it yourself, then it might be worth it. If the car you plan to donate is worth $15,000 and it is paid for, it would probably be worth your time and effort to sell it yourself, and simply make a cash donation to your favorite charity.

2. What questions should I ask the organization that I want to donate my car to?
The IRS provides a handy checklist of questions to ask and points to consider when donating your car:

a) Check that the Organization Is Qualified. Taxpayers must make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can use the IRS Web site to check that an organization is qualified by searching Publication 78 at www.irs.gov/bus_info/eo/ eosearch.html. Publication 78 is an annual, cumulative list of most organizations that are qualified to receive deductible contributions. Publication 78 is also available in many public libraries. In addition, taxpayers can call IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500. Be sure to have the organization’s correct name and its headquarters location, if possible. Churches, synagogues, temples, mosques and governments are not required to apply for this exemption in order to be qualified. They frequently are not listed in Publication 78. Donations to these institutions are tax deductible.

b) Speak Directly to the Charity. Many donors also want to make sure their contribution is used for the charitable purpose they intend. The IRS urges donors to ask whether those soliciting the car donation are officials of the charity itself or a private fundraiser acting on the charity's behalf. If it is a private fundraiser, what will it do with the vehicle? Will the car be fixed up and given to the poor and needy? Or will it be resold? And if it is resold, what share of the proceeds will go to the charity? A donor can ensure the donation furthers the intended charitable purpose by obtaining acceptable responses to these questions.

c) Examine State Filings for More Information. Taxpayers can also review the organization’s state registration and financial filings. These documents are commonly filed with a state charity regulator suss ch as the State Attorney General’s Office or the Secretary of State’s Office. Donors can use these records to find out how long a charity has been in existence and to compare the percentage of revenue the charity spends on its charitable programs to the percentage it spends on administrative costs.

d) Contact State Charity and IRS Officials When in Doubt. Donors with questions about whether a contribution is deductible should call the IRS at 1-800-829-1040 or for TTY/TDD help, call 1-800-829-4059. Donors concerned that contributions are being solicited for fraudulent purposes should contact the appropriate state charity official, who is often located in the state attorney general's office. A list of state charity official offices can be found online at www.nasconet.org, and a list of state attorneys general can be found at www.naag.org.

d) Itemize in Order to Benefit. Many taxpayers can’t take a deduction for car donations because they don’t itemize deductions on their personal tax return. For taxpayers, the decision to itemize is determined by whether their total itemized deductions are greater than the standard deduction (for 2003, the standard deduction will be $4,750 for single; $9,500 for married filing jointly). Just under one-third of the nearly 129 million individual taxpayers itemized in 2000, the last year for which complete data is available.