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Step 1
Do a little research. If you already know of a good charity that accepts car donations, you're all done here. However, if you aren't sure, do a little research for a charity that supports a great cause and accepts car donations.
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Step 2
If you don't know where to get started, follow the first link to a searchable version of IRS Publication 78, which lists registered charities throughout the country. If you already have a charity in mind, use Publication 78 to verify that it's a registered 501 (c) (3). You can also use the link for Minnesota Attorney General charity search. This will be important if you intend to file for a deduction. NOTE: Religious organizations such as churches, temples and mosques are not required to register and may not be listed in Publication 78. However, if unsure, request proof of their tax-exempt status.
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Step 3
Determine the value of your car using a pricing guide. If the value is over $5000 have it appraised as required by the IRS for full deduction purposes.
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Step 4
Schedule your donation. Many charities will use a towing service to pick your car up. You may also want to arrange to drop it off.
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Step 5
Sign over the title to the charity so that you are no longer the owner of the vehicle and won't be responsible for any issues with it down the line. Make a copy for your records.
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Step 6
Report the title transfer to the Minnesota Driver and Vehicle Services. Follow third link for more information.
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Step 7
When the car is picked up/dropped off get a receipt of your donation that includes the name and address of the charity, your information, and make, model and year of the vehicle. The receipt should clearly designate that there was no money, goods or services exchanged for the vehicle.
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Step 8
Your tax deduction will depend upon what was done with the car (used by the charity, fixed up or sold) and the fair market value or selling price of the vehicle. Refer to IRS Publication 4303 below for more specific information and examples or see a tax professional for assistance.
