Car DonationCharityFinance

Steps for donating a car to charity

  1. Find a charity- this process involves identifying the charity you want to donate to. The 4easiest way to do this is by identifying the course you want to support. Examples are cancer research or kidney diseases research. Then identify the organization that offer the course you want to support.
  2. Check if the charity of your choice is classified as a nonprofit- for your car donation to be qualified for tax deduction, the charity you contribute to should be registered under nonprofit organization. Religious organizations and charities qualify as nonprofits organization.
  3. Provide information about your vehicle donation- the required information is: the car’s model, the cars make the vehicle’s current mileage, the vehicle’s identification number and the last date that the car was driven. The above details will be requested by any organization you intend to make a donation to.
  4. Complete the required paperwork- different states have different requirements for the paper work that is needed. In most of the states they require a certificate of title for the transfer the vehicle.
  5. Have the vehicle appraised, if necessary- if you intend to make a claim of more than $5000 as tax deduction then in this case an appraisal is of importance. It is important to talk to the charity in advance to know what they intend to do with your car donation. If the organization does not intend to sell the car but rather use it then the services of an approved appraiser are required.
  6. Schedule a pick-up- if your vehicle donation is accepted the organization will schedule for a pick up. It is important to avail yourself during the pickup day just in case any issues arise. It is also important to note that the organization have up to three years to sell the car after pick up.
  7. Surrender your license plates- different states have different procedures for transfer of ownership of cars. You can either decide to keep your license plates and use them for your new car or alternatively you can choose to surrender them. In case you decide to surrender them you are required to drop the plates at your states department of motor vehicles.
  8. Decide if you want to itemize your taxes-you can choose to claim standard deductions instead of itemizing your deductions. People itemize their deductions in order to claim a tax deduction.
  9. Find the vehicles fair market value- the fair market value of a car donation is the amount that a car would sell in arm’s length transaction among strangers. Finding the market value of a car can be done through price guides such as NADA.
  10. Complete required paper work- you are required to attach your acknowledgement letter to your tax returns. If your claim is above $500 you will be required to fill in additional paperwork.

It is also important to note that one can chose to sell the car in person in case they have better luck finding a buyer before the charity organization does.

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