Donating a Car

What to Do First

Before you hand over the keys to your car to a charity, the Internal Revenue Service advises that you:

• Research the charity

• See if you will receive a tax benefit for your donation

• Look up the value of your car (however, you can only deduct the actual amount the charity sells your car for)

• Ask if you, as a donor, have any other responsibilities

In addition, you may want to consider:

• How will your car be used?

• Will the money from the sale of your car be used locally or outside of your community?

• Which programs or services within the charity will receive funding from the sale?

• What is the efficiency rating of the charity? (A lower rating means more of your donation goes toward administrative costs, not to the programs and services you want to support.)

For more information on this and tax-related matters, read the IRS's A Donor's Guide to Vehicle Donations.

Finding a Charity

Forbes ranks America's 200 Largest Charities and, in some cases, discloses their financial details, which may help you make informed giving decisions. Be sure to visit the Better Business Bureau (BBB) in your area, if you are interested in local charities. Or the BBB Wise Giving Alliance.

The IRS's Publication 78 lists qualified charities; religious organizations aren't listed, though they do qualify.

Notice of Transfer

Once you have determined the right organization, be sure to complete A Notice of Transfer and Release of Liability form and submit it to the Department of Motor Vehicles within five days from the date of your donation. This will serve as proof that the car no longer belongs to you, in case it's involved in an accident. The charity will also have you transfer the title to them.