Donating a Car

General Tips

While donating a vehicle to charity may be a noble gesture, not to mention financially rewarding, potential donors should do their homework first.

To begin, find out as much information as you can about the nonprofit you've chosen, including the percentage of the sale that goes to the stated cause, what it intends to do with the vehicle, and if it qualifies as a tax-exempt organization.

Unfortunately, scams are common in the market for vehicle donations. To make matters worse, improprieties can be hidden anywhere along the line. This includes the charitable organization itself, the company reselling the vehicle, and even the towing company.

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

While donating a vehicle could result in significant tax savings, the laws concerning vehicle donations are complicated. It's wise to check with the Internal Revenue Service on the matter, or download the agency's vehicle donations publication. This will give you valuable guidance about the best ways to determine the fair-market value of your donation, and the kinds of written documentation required for recordkeeping.

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

For more information on this subject, be sure to read our article about the ins and outs of the whole process.

Donation Procedures

• Transfer the title of the vehicle over to the charity.

• Complete a bill of sale for your records.

• Remove the license plates and, within 30 days, either transfer them to another vehicle, or surrender them in person or by mail to the Department of Motor Vehicles (DMV).

Additionally, donors may qualify for a credit or refund of their registration fees.