A not-for-profit company that raises money for charities by scrapping unwanted cars has passed a £500,000 fundraising milestone in just under two years.

The Putney-based Giveacar enables motorists to call the not-for-profit organisation, nominate any UK charity to receive the proceeds of their old banger, and have their car picked up from their home for free.

The venture was started in January 2010 by 24-year-old Tom Chance, who has since moved on to a job at Deloitte.

The half-million pound mark was reached when a man in Arundel, West Sussex donated a Toyota Avensis. It fetched £479.50 at auction, which went to a delighted local children’s hospice.

Alex Harvey, Giveacar’s manager said: “We’re thrilled that we have been able to raise £500,000 in such a short time. I’m particularly glad that, in the run-up to Christmas, we reached this target with a donation to a charity that cares for children in very difficult circumstances.”

Causes in Wandsworth that have benefited so far include the Royal Hospital of Neuro-Disability in Putney - receiving £2,800, and the Trinity Hospice in Clapham, with £1,894.

The organisation says it can pick up cars or motorbikes from just about anywhere in the country with its network of scrap merchants and auction contacts.

Giveacar has set itself a target of raising £1m for good causes in 2012. Call 020 0011 1664 or visit www.giveacar.co.uk