Donating a Car

Donation Procedures

If you donate a vehicle to a charity, be sure to take off the license plates. Then take the plates to a Department of Motor Vehicles (DMV) office with your registration, so you can cancel the registration.

Doing so protects you from any liability charges that might arise after the vehicle is no longer in your possession. It also removes the possibility that your vehicle will be hit with a property tax assessment. If you have at least one year left on your registration, you may also receive a registration refund.

Also, transfer ownership of the vehicle to the charity by signing the back of the title, and filling in the appropriate information.

Don't cancel your liability insurance until you've cancelled the registration.

General Vehicle Donations Tips

While donating a vehicle to a charity may be a noble gesture, and financially rewarding, potential donors should do their homework first.

To begin, find out as much information as you can about the organization you're intending to use, including the percentage of the sale that goes to the organization, what they intend to do with the vehicle, and if the charity qualifies as a tax-exempt organization.

Unfortunately, scams are common in the vehicle donation field. To make matters worse, they can be hidden anywhere along the line, including within the charitable organization, the organization re-selling the vehicle, or even the towing company.

It's a smart move to check with the Better Business Bureau, the Connecticut Attorney General's office, and the Secretary of State's office to see if the organization has a favorable track record and is registered with the state.

Donating a vehicle could result in a significant savings on your taxes, the tax laws concerning vehicle donations are complicated. Check with the Internal Revenue Service on the matter, or download the agency's vehicle donations publication.

Consulting with an accountant or a tax professional is also a good idea.

Charities

There are many charities willing to accept your car. Here are just a few.

Cars4Charities
works with many Connecticut organizations, including Ronald McDonald House, Autism Speaks, Wildlife Orphanage, and the Breast Cancer Research Foundation, Inc.

Cars For Kids raises funds for at-risk youth.

America's Car Donation Charities Center connects you with many charities, including the American Diabetes Association, the Red Cross, and SIDS Network.

Car Angel helps single moms, orphans, and others.