Car donation is the practice of giving away no-longer-wanted automobiles or vehicles to charitable organizations. In the United States, these donations can provide a tax benefit.
Some critics have claimed that car donations are essentially a tax shelter. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread; in 2000, 733,000 U.S. taxpayers reduced their taxes by $654 million.
Car donation schemes in the UK are slightly different from those operating in the United States and only established themselves as a valued source of income for UK charities, led by Giveacar - a non-profit organisation. Operating as a non-profit organisation allows charities to avoid the large overheads created by profit-making car donation companies.