Ensure You Can Donate Your Car
Once you've identified a couple non-profits in the area you'd like to support, find out if they accept used cars as gifts. Not all non-profits are equipped to handle that type of donation.
If they do accept cars as gifts, you can then narrow down the list. You can do this by checking each organization'sCharity Navigator rating. You can also look up their tax filings on Guidestar, where you can see their financial profile and how much their highest paid employees are compensated.
Additionally, another great way to research a charity is by visiting the non-profit to form your own opinion of the work they do.
Tax Deductions for Donated Cars
The deduction you can take on your tax return is based on thefair market value of the car. You can start to determine that by visiting Kelley Blue Book or the NADA Guides, which both have excellent used car rating tools.
However, keep in mind that these book values are generalizations.
For example, if you determine that your car is worth $5,000, but you know it doesn't start because it needs a new battery, the fair market value is $5,000 minus the price of replacing the battery.
You can learn more about taxes and your donated car by visiting our Tax Deductions & Car Donations page.
DMV Requirements for Donations From the perspective of the DMV, donating your car is similar to selling your car. All the paperwork for a title transferplus canceling your registration still applies. The exact steps you'll need to take will vary from state to state. Contact your local DMV office for specific requirements and details.
DMV Requirements for Donations From the perspective of the DMV, donating your car is similar to selling your car. All the paperwork for a title transferplus canceling your registration still applies. The exact steps you'll need to take will vary from state to state. Contact your local DMV office for specific requirements and details.
Source: http://www.dmv.org/buy-sell/selling-your-car/donate-car.php