How to Donate an Old Car

By Catherine Sommerfeld

  • Overview

    When your old car is on its last legs, trading it in or selling it may not be the best option. Don't junk it yet, there are many charities and organizations that will be happy to take it off your hands. However, donating an old car does require that you track your paperwork and get an appropriate receipt to get a deduction on your taxes.
    • Step 1

      Contact an organization that specializes in donating cars to reputable non-profit charities, like Car Donation Charities Center. Other organizations, like 1-800 Charity Cars, donate cars directly to needy families.
    • Step 2

      Ensure that you are donating your car to a legitimate charity. Determine whether the organization you choose works with charities that are classified as non-profit charities by the IRS. You can search the IRS website, ask the organization to show you its IRS paperwork recognizing it as tax-exempt or call the IRS at 1-877-829-5500.


    • Step 3

      Maintain insurance on your car until the transfer of the title takes place. Organize your paperwork; you will need to fill out the charitable organization's paperwork along with transferring your title. Transfer the car title to the charity's name, make a copy of the title transfer and notify the Motor Vehicle Association. Check with your state's Motor Vehicle Association to ensure proper title transfer, as this varies by state.
    • Step 4

      Coordinate pick up of the vehicle with the organization and remove the license plates from the vehicle. If the car is not running, many organizations will tow it at no cost to you.
    • Step 5

      Get a receipt from the organization, and know how to deduct your donated car on your taxes. To deduct the value of your donated vehicle, you will need to itemize deductions on your tax return. You can deduct either the value of your car up to $500, the gross amount the charity sells your car for (you will need to get proof of the sale in writing) or the Fair Market Value of your vehicle if the charity keeps the car to use or makes significant repairs to it prior to selling it.
    • Skill: Moderate
    • Ingredients:
    • Car Title
    • Tip: Remember to take any personal belongings out of your car before you turn it over.
    • Tip: The Kelley Blue Book website is a good source for determining the Fair Market Value of your car, since Fair Market Value takes into account the condition of the car.

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