How to Donate Your Car in Denver, Colorado

Donating your car in Denver, Colo., can be personally rewarding.

Donating your car can help someone truly in need of a vehicle. It can also help your own personal tax burden if you seek a deduction. There are a wealth of organizations in Denver, Colo., that will accept your automobile donation. The funds generated by the sale of your vehicle will go to furthering the mission of the organization. The process includes transferring the title, determining fair market value and filing the necessary tax form.

Instructions

1. Find an organization that accepts car donations. Almost any reputable nonprofit organization accepts automobile donations. Pick one that fits your own philanthropic goals. Well known charities in Denver include Red Cross, Catholic Charities of Denver, Ronald MacDonald House and United Way. Use Charity Navigator to evaluate the financial health and efficiency of major charities in the area.

2. Arrange for pick up or drop off of vehicle. Many organizations will pick up your vehicle for free. This can be a major bonus if the donation center is far from your residence. Ask any organization you are considering to determine your options. See if there are additional expenses for you or for the organization for vehicle pick up.

3. Transfer the title. Fill out the transfer section on your official vehicle title. Include proper information of the receiving organization, odometer reading and an emissions inspection certificate. Remove the license plate upon completion of transfer and keep it for your next vehicle.

4. Obtain a receipt for proper valuation of car. Since 2005, you cannot simply deduct the fair market value of your car if it is worth more than $500. You will need to wait until the organization sells your car at auction or to a needy applicant. Get a form from the organization and ask how it plans to sell the car. If it will be sold at auction, ask for the date and how you will be notified of the final selling price. You will need an official receipt with this amount to deduct the value on your taxes.

5. File the Internal Revenue Service form for the tax deduction. Use IRS Form 8283. It might take weeks or months until the car is sold, so plan ahead. If you plan to make an end-of-the-year deduction, make sure the official date of the donation will be recorded before Dec. 31.

References

• Charity Navigator: List of Organizations in Denver
• Colorado Department of Motor Vehicles: Buying and Selling
• IRS: Information on Donations, Form 8283