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Wheels or no wheels, the old car sitting in your driveway is dollar signs waiting to be cashed in. Charities have been accepting donations of cars, and even boats, for decades.

Among the first charities to accept donations was the National Kidney Foundation, which gets roughly 20 percent of its revenue from vehicle donations.

"You tell us the kind of car you have, where you live. You say when you want the car to be picked up, and then an organization that works with us will pick up your car in a specified time and take it away," says Larry Geiger of the National Kidney Foundation.

Once the vehicle is sold, at auction or for parts, the charity is required to provide donators with a 1098c, listing how much the donation was worth.

"Operating cars normally get $1,000 or more for the donor at the auction," says Geiger. "The ones that are up on blocks might not even have an engine; those might be worth $300, $400."

Many people assume that if the car fetched $500, that they will save the same amount of money on their taxes. Certified public accountant John Vento says that is not at all the case.

"That's simply a line item you're going to put on Schedule A," says Vento. "That $500, times your tax rate, is what you are going to save."

If the vehicle is worth $1,000, some of it will go towards the charity of one's choice and could save up to $250 on taxes. Those who put in the time and legwork to sell the vehicle on their own can put an extra $1,000 in their pocket.

"If convenience is the number one goal, then donating it makes sense," says Vento. "If you're just charitable, then of course it makes sense. But when it comes down to dollars and cents, you really have to analyze which one would put more money in your pocket."

Donating may be the easier road, but it also requires homework.

Claire Rosenzweig of the Better Business Bureau says donators need to do their own research to make sure the organization is legitimate. She also suggests dealing directly with the charity of choice, rather than going through a third party that helps facilitate donations.

"These third parties can keep anywhere from 50 to 90 percent of the amount of your donation for themselves," says Rosenzweig.

Finally, Rosenzweig warns when it comes time to turn over the title to the car, to write in the name of the charity and to never leave the document blank.

"You don't know what's going to happen to that car once you hand it away, and you want to make sure the ownership of the car is clearly not yours anymore," says Rosenzweig.