How to Give a Car to Charity
Instead of keeping a car you don't need anymore sitting in the driveway, it's a good idea to donate it to charity. You can do so whether or not the car is working, since even cars that are not functional can still be used for parts. It's not as simple as just driving or towing it over and asking for a receipt, however. There are several things you have to do beforehand to make sure your donation is legal and receive tax benefits you are entitled to.
Other People Are Reading
Instructions
-
-
1
Select your charity. There are lots of nationally known charitable organizations that take cars, including Purple Heart, the Ronald McDonald House Charities, the American Red Cross and the Salvation Army. You may want to look into local charities, too. Often, they will leave hangers on your door or postcards in your mailbox. Make sure the charity is a registered 501(c)(3) if you want to deduct your car donation on your taxes.
-
2
Talk to a representative of the charity you choose either in person or on the phone. You need to find out what the organizations is going to do with your car. More specifically, you need to find out of it plans to sell your car outright for cash or keep it to drive or give to someone else to drive. In the case of the former, you can deduct the greater of the price the charity gets for your car or $500. In the latter case, you can deduct the entire fair market value.
-
-
3
Make a trip to your local Department of Motor Vehicles and get a title transfer. Ask the charity representative for the official name of the organization beforehand and have the title transferred to this exact name. Turn in the car's license plate and cancel the registration on it. Also, tell your insurance company that you no longer own the vehicle. Note that you cannot legally drive this car after completing these tasks.
-
4
Call the charity and tell a representative the car is ready to be picked up. If the charity does not have the means to collect the car, have it towed instead. Any of the national charities listed in Step 1 should be able to come get the vehicle.
-
5
Wait until tax time. Then claim your appropriate deductions.
-
1
Tips & Warnings
This article is not tax advice. For specific details on deducting your car, please consult a professional tax adviser. Work with a charity directly, not through a third party. Third parties often expect fees for their services so the charity gets less money.
