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Step 1
Choose the charity or nonprofit organization to which you want to donate a used car. A number of national organizations have programs where you can donate used cars For instance, the Order of the Purple Heart (see Resources below) assists disabled veterans. The National Kidney Foundation (see Resources below) provides assistance to patients in need and conducts public health education programs. Many organizations like the Glaucoma Research Fund and Mercy for Animals use car donation services that list a variety of national and local charities and nonprofits. For example, Donate for Charity (see Resources below) handles car donations for many organizations and is a good place to locate worthy recipients.
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Step 2
Check to be sure the organization is qualified to receive donations according to IRS rules. If you're not sure, go to the Internal Revenue Service Car Donation Guidelines website (see Resources below) and search Publication 78 to check. This is a list of qualified charities. Churches, temples and similar religious organizations can accept car donations but are not required to register and may not be on this list.
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Step 3
Fill out a donation form. Most car donation programs provide an online facility to do this, although you can request a paper form if you wish. You need the Vehicle Identification Number off the title, the odometer reading and a description of the car's condition, including any damage or mechanical problems.
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Step 4
Arrange for the car to be picked up when you are contacted. Once you've filled out a donation form, the charity or car donation service will pick up the car at no cost to you. Be sure to remove any personal items.
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Step 5
Make sure you have the title filled out and your signature notarized. You need to turn over the keys and a copy of the registration in most states. In some states you are required to leave the tag on the car, but not always. If you aren't sure, call your state Department of Motor Vehicles.
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Step 6
Keep the documentation you'll be given so you can claim your tax deduction. Under IRS rules you can deduct the amount the car is sold for, unless the charity uses the car in its program, in which case you can deduct the fair market value. The charity or nonprofit is required to send you this information within 30 days of the car's sale. However, if the car sells for less than $500 you may choose to deduct the fair market value up to $499.
