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Step 1
Assess the value of your car. Look up your car's fair market value in a Kelley Blue Book. Be realistic about your car's condition.
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Step 2
Determine if your car is in acceptable condition for a donation. Charities do not accept all vehicles. It must be in decent condition. If your car is worth more than $5,000, you should have it appraised by a professional and keep the appraisal for tax purposes.
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Step 3
Find a charity that takes car donations. A wide range of charities accept car donations so choose one that appeals to you.
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Step 4
Confirm that the charity is a registered 501(c)(3) organization or a qualified religious group. If you do not donate to a qualified group, you won't be able to take your tax deduction.
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Step 5
Give the car keys to the charity when you turn over the car. Check with your state regarding what to do with the car title at the time of donation. Regulations vary from state to state.
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Step 6
Get a complete receipt from the charity. The receipt should include the charity's name, its federal tax ID number, your full name and the date you donated the car. You should also list the car's year, make, model and color on the receipt. You can also notate the car's mileage and condition on the tax receipt, if you wish.
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Step 7
Contact your insurance company and tell them you no longer own the car. You shouldn't continue paying insurance on a car that is no longer in your possession.
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Step 8
Keep all documentation of your car donation. You will need to submit the documents when you file your taxes.Charities may use your car within their organization. They may also choose to improve the car or give the car to a needy person.
