How to Fill out the Back of a Title for a Car for an Act of Donation
If you are planning to donate your car to an eligible charity, your in-kind donation can help a nonprofit organization help others. Cars are often sold at auction with the proceeds from that sale given to the charity to use as they see fit.
To complete this donation, you need to have your car's title on hand to transfer ownership. There are certain tax benefits you can realize through a car donation, but those will not kick in until your car has been legally transferred to the new owner and sold.
Other People Are Reading
Instructions
-
-
1
Find your title. If your car is paid for, meaning you have a clear title with no liens against it, then you should have a copy of your title with you. If not, contact your state's department of motor vehicles in order to obtain a copy.
-
2
Find a charity. Many charitable organizations will gladly accept your car donation and then send to you a receipt once the car has been sold. The Internal Revenue Service will then allow you to deduct the actual selling price given for your vehicle. In some cases the charity may keep your car and use it for its own purposes, which means you can deduct the higher fair market value per IRS instructions.
Always make sure that the charity is a 501c3 organization per IRS code before signing over the title to them.
-
-
3
Sign the title. With 50 states in the union, there are 50 different ways for you to sign your title and transfer it to a charity as an in-kind donation. Generally, there is release language on either the front or the back of the title stipulating that you are transferring ownership of your car to someone else. In some states, if there is more than one owner both people must sign and date the title.
Examine your title closely to find out where you should sign it. The charity should be familiar with this process and can guide you; or if you can bring your title to your state's department of motor vehicle and transfer the title with the help of an agent.
-
1
Tips & Warnings
IRS Publication 4303 outlines car donation procedures. A link to this publication is available in the Resources section blow.
Your in-kind donation should be sold by the charity with documentation sent to you once the sale has been completed. You cannot claim the deduction on your taxes unless you have this form in your possession.
