The tax laws allow individuals to deduct the "fair market value" of a vehicle-and the IRS suggests using auto "Blue Books" or other valuation guides as a starting point-but don't get carried away and deduct the "full Blue Brook" price unless the vehicle is in perfect working order with low mileage. Some charities imply that an individual may deduct the "full Blue Book value" but that's not always true. To avoid the heartburn of a potential IRS audit, taxpayers need to be sure to paper their trails before signing over the vehicle.

Document the donated vehicle's mileage, condition and any extra features...and take pictures to support your position in the future if necessary. And be prepared to fill out IRS Form 8283, a requirement for non-cash charitable deductions over $500; if the donation write-off amount exceeds $5,000, you'll need to have the form signed by a qualified, independent appraiser.  Read more Q&A on the IRS' website here... and because the IRS' style of writing is so gosh-darned light, entertaining and easy to decipher, you won't wanna miss their Publication 526 a/k/a Everything You Wanted To Know About Charitable Contributions (But Didn't Know To Ask) section here.

Remember: Just because the IRS is looking a bit more closely at these types of write-offs doesn't mean you should be scared by them!  Many charities are tapping into a huge pool of donation cash through these types of programs. Just make sure (as a charitable taxpayer) you're not getting carried away with the value of the vehicle you're planning to donate!  Here's the rest of the tips to make sure the bad guys don't take advantage of your good nature...

Believe it or not, some con-artists have the gall to run schemes that cheat generous Americans who think they're giving to charities and good causes. Unfortunately, some donations never reach the people who need help. Some solicitations are outright scams and take all the funds contributed. Others eat up so much of the money in "fund raising expenses" that virtually none is left for true charity. Questionable charities cheat donors, shortchange people who truly need help, and hurt legitimate charitable organizations that rely on donations.  Some of the most frequent cover-stories for these charity scams?  Anything to do with police or firefighters, unfortunately.  Follow these tips to protect yourself against charity fraud:

• Give directly to a known charity of your choice. That's always the best option. Check your telephone directory for a charity's local office and contact the office.
  
• Don't be fooled by "look-alike" charity names. Some scams use names that sound impressive and are designed to resemble well-respected organizations.
  
• Ask phone solicitors to send written information. Check out the charity before you make a decision. Be suspicious if they refuse to send solid  information.
  
• Ask questions! Reputable charities welcome them! Ask how much of your donation actually goes for the charitable purpose.
  
• Ask if the caller will be paid a commission.
  
• Don't trust a charity that won't give you the facts, such as:
• Ask what percentage of the proceeds are deposited with the charity.
• Ask if your contribution is tax deductible.
• Ask for IRS Form 990, which provides detailed breakdowns on charities' expenses and cost.
• Ask if professional solicitors are hired and, if so, what percentage of the donations solicitors receive.
• Don't give credit card or checking account numbers over the phone to someone you don't know!
• Be skeptical of sweepstakes mailings that ask for a charitable donation. A donation does NOT increase your chances of winning (which are very, very small, by the way!). By law, sweepstakes may not require you to make a donation.