Most people want to help a charity in any way that they can, but some potential donors can be scarred of by a confusing process or a misunderstanding that doing so may be difficult and costly--this is especially true when the item to be donated is as large and heavy as a vehicle. To help you understand this process better, we have gathered the five most commonly asked questions about donating a car to charity and answered them below.

Will I have to deliver my car and pay for towing or will it be picked up at the expense of the charity?

You car will be picked up at your home by a towing company, at the expense of the charity. Sometimes you don't even have to be home at the time of pick-up, as long as you leave the title and keys in the vehicle. Many charities accept and arrange for the towing of cars in all 48 continental states.

What happens to my car after it is picked up? In what way does it benefit the charity recipients?

It is usually sold in some way and the profit from it is used to fund charitable activities or pay for expenses of running the charity. In a sense, it is like you are giving cash to the charity, but instead you are merely donating a car that you don't need. It may also be used directly by the charity or given to a needy person.

How is the value of my car determined?

The amount that you can claim on your tax return depends on if the Fair Market Value (FMV) of your car was more or less than $500, if the charity used it for anything before it was sold, how much it was sold for.

Cars that have a FMV of less than $500: You can claim up to the FMV of your car even if it was unable to be sold, sold for less than its FMV or if it was given away to a needy charity recipient.

Cars that have a FMV of more than $500: The value is usually determined by how much the car is sold for. An exception is when the car is used by the charity before the sale. In this case you may be able to claim up to the fair market value, if the car was sold by the charity for less than that. If your car was sold by the charity for $500 or less even though it had a FMV of more than $500, you can claim up to $500 on your tax return.

Can I donate a car that has mechanical problems?

Yes! In most cases the charity will take your car if they think that they can get more out of it then it costs to tow it. They may make the repairs and then sell it or sell it as is and take what they can get out of it. But remember that what they are able to get out of it will affect the amount that you can write-off.

How do I claim my write-off on my taxes?

In order to claim charitable deductions, you need to itemize your deductions. If your itemized deductions are worth less than the standard deduction, then you may actually be paying more taxes by itemizing. A tax deduction only helps those who itemize because their deductions are worth more than the standard deduction. You can still give your unused or unwanted car to charity, it just won't help you tax wise. It is also important to remember that a charitable deduction only lowers your taxable income amount. The value of your car will not be directly deducted from your tax bill nor will it be sent back to you in a refund check.