How to Donate Cars in Maryland

By Lashon Fryer

  • Overview

    When a person donates to a charity, he is helping himself while helping someone else. Giving provides nourishment to the soul, and it also just feels good. People give to charities by donating their food, their money and their time. In the last few years, motorists have began to donate their used vehicles to benefit the charity of their choice. Instead of selling or trading in their cars to receive monetary compensation, they opt to receive compensation no one can put a price tag on.
    • Step 1

      Choose a charity or nonprofit. Charities in Maryland use donated vehicles as an extension of their charitable work, and there are dozens to choose from. Kars 4 Kids, Cars for Brest Cancer, Kidney Car Donations and Maryland Car Donations are all very reputable charities that accept car donations, either over the phone or online. Also, all of these organizations are classified with the IRS as 501(c)3 charities, so the donor will receive a tax deduction.
    • Step 2

      Visit your chosen charity's web site, or call and arrange to have the vehicle picked up at your convenience. All of the charities mentioned above allow for the donor to set up the donation and the vehicle pickup online. Reputable charities appreciate such donations, so they will make the process as convenient as possible.


    • Step 3

      Sign over the title. Before a car can properly be given to a charity, the seller must transfer the title to the new owner. He does this by filling in the name and address of the charity under the "Assignment of Ownership" section of the title. If for some reason the donor does not have the title, a new title can be applied for. The Gift Certification (form #VR-103) must be presented with the car title; the donor can download this form from the Maryland Motor Vehicle Administration website. (See the second link in Resources.)
    • Step 4

      Release liability. In the state of Maryland, the license plates from the donated vehicle must be surrendered to the local Maryland Motor Vehicle Administration office before the registration can be canceled.
    • Step 5

      Get a receipt from the charity for the donated vehicle and verify that the identification number of the charity is located somewhere on the paperwork.
    • Step 6

      Cancel the car insurance on the donated vehicle. Insurance should only be canceled after the license plates have been surrendered to the Maryland Motor Vehicle Administration. If the insurance is canceled before the plates are turned in, the donor may face a penalty.
    • Skill: Moderately Easy
    • Ingredients:
    • Car title
    • Tip: If you choose a charity you have never heard of, research it on the Better Business Bureau's website. Request the charity's annual report and read it carefully.
    • Tip: Seek legal advice before donating a car if it is worth more than $5,000.
    • Warning:
    • Failure to turn in license plates can cost a donor extra money in insurance costs.
    • Never leave the "New Owner" section of a title blank.
    • Make sure the odometer reading is filed on the Maryland Certificate of Title.

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