Donating a Car

General Vehicle Donations Tips

Donating a vehicle to a charity may be noble and financially rewarding, but potential donors should to 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.

Check Out Your Charity

It's a smart move to check with the Better Business Bureau, the Utah Attorney General's office, or the Utah Division of Consumer Protection to see if the organization has a favorable track record and is registered with the state. Also reference the IRS's Publication 78, which lists qualified charities. Be aware that religious organizations won't be listed, though they are qualified.

Tax Benefits

While donating a vehicle could result in a significant savings on your taxes, the tax 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.

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

Donation Procedures

Assign the title over to the charity. You should also turn over the vehicle registration form, and any emission or safety certificates to the charity.

Complete a bill of sale and keep it for your records.

The license plates stay with the donor, so remove them before handing the vehicle over to the charity. This helps protect you from any possible traffic or parking tickets that are assigned to your vehicle after it's left your possession.

Write a letter to the Division of Motor Vehicles (DMV) alerting the agency that you no longer own the vehicle. Include the vehicle make, year, and license plate or vehicle identification number. The vehicle owner must sign the letter.

Fax the letter to (801) 297-3570, or mail it to:

• Division of Motor Vehicles

• Suspended Transaction Unit

• 210 N. 1950 W.

• Salt Lake City, UT 84134