by A.N. Carter

Created on: December 04, 2008   Last Updated: January 08, 2009

When you donate a car, you are turning a valuable asset into an act of generosity. The Denver area offers a great array of companies willing to pick up your vehicle as soon as you call them. However, you should be aware of the steps you need to take before you pick up the phone.

Choose your organization wisely. Although there are many aid organizations that are willing to accept vehicles as donations, not all of them are legitimate. You will need to research their credentials. The best charities are recognized by the Better Business Bureau. You can find a list of the organizations at

www.bbb.org/charity, or at your local BBB office. Moreover, you should be aware of the approximate value of your vehicle, and how much of that will be gifted to appropriate recipients. Most foundations will use a portion of the profits to cover administrative costs.

Though some organizations require that the car be in working order, some will pick it up in any condition. Even if the car is totaled, they might be willing to strip the car for parts and sell them.

If you want these proceeds to benefit the Denver area, you will need to ask the organization whether this is possible. Many charities are based on the national level but are willing to invest in your community upon request. They assist an array of causes; anything from children's causes to public schools and healthcare. Contact these organizations individually for this information.

The government requires that you take certain actions before donating your vehicle. The Department of Motor Vehicles is the best place to start. You will need to fill out a "transfer of title" form before the car is picked up. This will take the title out of your name, protecting you from any liability after it is donated. Whether you will be required to pay any fees or fill out any additional paperwork is dependent upon your individual situation. Visit the Denver DMV offices or go to www.dmv.org to print the paperwork yourself.

In order to receive a tax write off from your donation, you will need to contact the IRS for information. Some paperwork will be provided to you from the charity, but you will need to get additional filing information directly from the Internal Revenue Service. Some people enlist the advice of a tax attorney, but this can be costly, and is only recommended when you donate two or more vehicles. Moreover, be aware that the IRS will grant you the deduction only if they recognize the organization. Visit their website, www.irs.gov for information and a list of appropriate charities, or contact them directly.

Donating a car in Denver is a wonderful act to serve your community. Do your best to be prepared before you start the process and it will go much more smoothly.

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