If you have a car sitting around that you do not drive for one reason or another, you’ve probably considered some options for getting it out of your way. You could put it in the classifieds, but then you would have to set up showings and deal with the frustration of no-shows and haggling. You could sell it to a junkyard, but you might not get a good price for it that way. Have you considered donating it to charity?

It’s fairly well known that charitable donations can be written off on your taxes. But many taxpayers assume that they must donate money to qualify, and that’s not true. You may also donate property of any type to charity and receive a deduction. In the case of vehicles, the deduction amount is generally the price for which the charity sells the car. So if you want to get a car out of your way without a lot of hassle and still have something to show for it, donating it is a viable option.

In order to donate your car, you’ll need to find a qualifying charity that will accept it. There are lots to choose from, and there are donation centers that can help you find them. No matter what type of cause you wish to support, there’s a very good chance that you can support it by donating a car.

Your car doesn’t even necessarily have to be in good running condition to be accepted. Many charities will take running or non-running vehicles. This is because they usually turn around and sell the vehicles that are donated, either to a private buyer or a junkyard. In some states, you don’t even need the title to donate a car.

In order to take advantage of the tax credit, there are a few things you must do. First, you need to determine the vehicle’s fair market value. If it is $500 or less, you can simply deduct that amount. If it’s more than $500, you’ll have to wait and see how much it is sold for to find out how much you’ll be able to deduct.

When you make your donation, you’ll need to get a receipt from the charity for your records. In the event of an audit, you’ll need to produce the receipt as proof of your donation. If your deduction totals more than $500 (or if you make other non-cash contributions and their total exceeds that amount), you’ll have to file Form 8283 with your tax return. And if the vehicle’s value is over $5,000, you must get a written appraisal.

Donating a car is a great way to help a worthy charity. And it can also save you money on your tax bill. So instead of going through the hassle of trying to sell your vehicle, why not check into donating it?