The idea of donating your used car is no more a secret to derive tax benefits. Most people in the country are now aware about the monetary rather than intrinsic value of a donation. If you, however, do not know how a used car donation might help you, and if you are about to donate a car, I would suggest you to wait for a while, at least till you finish reading this article.

There are few things you need to know before you give away your car to a charitable organization. Here are thee important used car donation tips.

1.    Understand that even crap has value

This is one of the most important things you must know, if you intend to save money on tax. You throw away, or give away items to some people just because it’s crap for you. Maybe it isn’t for somebody else. It isn’t for you as well.

You can donate almost anything you own, and anything you think is crap to charitable organization and earn a good deduction against it. The item you are about to donate, however, must be in good shape, at least it should be repairable.

2.    Once you donate your car, it’s not yours

Know that once you have donated your car, it is no longer yours. Many organizations would call you up after donation and ask you to fix certain problems that they found in the car. It is not your responsibility, and make this clear to them. Once they pick up the car, every expense related to it should be taken care of by them.

3.    Take care of the receipt

This is one of the most important used car donation tips. When you decide to donate your car, go to the towing company and get a temporary receipt. You will need to have this receipt when they pick your car. And this receipt is also used as evidence that you have donated your car to a particular organization though a particular towing company. This information would be necessary during filing deductions.

There are many other things you need to learn about used car donation. These are however the crucial ones, hence most important used car donation tips.