Research Charities: Ensure the charity is a 501(c)(3) nonprofit organization so your donation is tax-deductible. Use resources like Charity Navigator or GuideStar to evaluate charities.
Charity’s Mission: Choose a charity whose mission aligns with your values and interests.
Prepare Your Car for Donation
Documentation: Gather the car’s title and any other relevant documents.
If you’ve misplaced the title, you can request a duplicate from your local Department of Motor Vehicles (DMV).
Condition: Most charities accept cars in any condition, whether running or not. However, confirm with the charity if they have specific requirements.
Complete the Required Paperwork
Notice of Transfer and Release of Liability: Notify your local DMV that you are no longer responsible for the vehicle.
This often involves completing a form and can sometimes be done online.
Title Transfer: Sign the title to transfer ownership to the charity.
The charity may assist you with the necessary steps.Arrange for the Car’s Pickup or Drop-Off
Pickup: Most charities offer free towing services and will arrange to pick up the car at a convenient time.
Drop-Off: If the car is operational, you may choose to drop it off at the charity’s designated location.
Get a Receipt
Initial Receipt: Obtain a receipt from the charity at the time of donation. This receipt should include your name, the charity’s name, the car’s make, model, and year, and the date of donation.
Detailed Receipt: If the car is sold by the charity, you will receive a second receipt indicating the sale price, which is required for tax deduction purposes.
- Claim Your Tax Deduction
Fair Market Value: If the car is worth more than $500 and the charity keeps it for its use, you can deduct the fair market value.
Sale Price: If the car is sold, your deduction is based
on the actual sale price.
IRS Form 8283: Complete this form if your deduction is more than $500.
Documentation: Keep all receipts and records for tax filing.
Reputable Charities for Car Donation.
Goodwill
Supports job training and employment services.
Accepts cars, trucks, boats, and RVs.
Offers free towing.
The Salvation Army
Funds programs for the homeless, veterans, and those in need.
Provides free towing and a hassle-free donation process.
Kars4Kids
Uses proceeds to fund educational programs for children.
Provides free pickup and a vacation voucher as a thank-you.
Habitat for Humanity
Supports building homes for those in need.
Accepts cars, trucks, motorcycles, RVs, and boats.
Offers free towing.
American Cancer Society
Funds cancer research and patient support programs.
Provides free towing and handles all paperwork.
Make-A-Wish Foundation
Grants wishes for children with critical illnesses.
Accepts a wide range of vehicles and offers free towing.
Tips for a Successful Car Donation
- Verify the Charity’s Status
Ensure the charity is registered as a 501(c)(3) organization to qualify for a tax deduction.
- Understand the Tax Implications
Consult with a tax professional to understand how the car donation will impact your taxes and ensure you maximize your deduction.
- Gather Necessary Documents
Have the car’s title, a lien release (if applicable), and any other relevant paperwork ready.
- Clean the Car
While not mandatory, cleaning the car and removing personal items is a good practice.
- Be Honest About the Car’s Condition
Provide accurate information about the car’s condition to the charity.