Donating a Car

General Vehicle Donations Tips

Donating a vehicle to a charity may be a noble and financially rewarding gesture, but potential donors should still be sure to do their homework first.

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

• Whether 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.

Considering this, it's a smart move to check with the Better Business Bureau, the Florida Attorney General's office, and the Department of State office to see if the organization has a favorable track record and is registered with the state.

While donating a vehicle could result in a significant savings on your taxes, the tax laws concerning vehicle donations are complicated. So, it's wise to 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.

Transaction Process

To properly complete the donation process, you should remove the license plates from the vehicle and either use them on another vehicle of yours, or take the plates to a driver license or county tax collector office. If you return the plates to an office, your registration will be canceled for you.

Complete a bill of sale, showing that you no longer have possession of the vehicle. Doing so frees yourself from any civil liability claims that might arise after you've donated the vehicle.

Of course, assign the ownership of the title to the charity by filling in the necessary information on the title.

Finding a Charity

Qualified Charity Search

The IRS's Publication 78 lets you search for qualified charities. Or call the IRS Customer Service Accounts Services Division for Tax Exempt and Government Charities at (877)829-5500.

Remember that many religious organizations are not listed (they're not required to apply to the IRS), but still qualify.

Online

There are many online resources that either accept your car for their charity, or connect you to the charity of your choice. Here are a few.

Donate a Car 2 Charity

Kars 4 Kids

Outreach Center

America's Car Donation Charities Center