Check on the Charity's Financial Well-Being

Charity watchdog groups like Charity Navigator (www.charitynavigator.org) encourage donors to check a charity's financial welfare when donating. Before making vehicle donations, ask how much of the charity's overall budget goes to direct services and programs, and how much is for administrative costs. Look for charities that spend three-quarters of their budget on direct programs and services. Find out the portion of proceeds from vehicle donation that go to charitable causes versus how much is spent on processing fees for car donations.