Car Donation can be a hassle free solution to ridding yourself of an old car while at the same time helping someone in need. Most Car Donations go to charitable non-profit organizations. This means that a Car Donation is totally tax deductible. When you donate a car the organization will usually handle all of the necessary paperwork for you. Donated cars are often auctioned off with the proceeds going to the charities cause. Car donations are a smart financial decision and can make the person donating the car feel good about helping out the community.