How To Donate a Car to a Non-profit Organization

Auto donation involves several steps, from choosing a non-profit organization to providing them with a signed title. Following legal procedure can make sure that the car recipient receives title certification in accordance with state laws. Here are some steps to follow when donating your car to a non-profit organization:

Choose an Organization

Finding the right non-profit organization (NPO) for an auto donation may involve scrutinizing multiple organizations that address similar issues. Online charity databases provide information about each NPO, including their vision, impact, reach, and contact information. Local organizations excel at catering to local community needs but can limit their operations to the community level. If you have a broader scope for charity, you may choose to donate to a larger NPO.

Verify Eligibility Details

Check if the non-profit is equipped to accept vehicle donations. Not all non-profits have the infrastructure to handle vehicle donations directly. If you’re looking for a federal tax deduction, make sure the organization is approved by the Internal Revenue Service (IRS) and can provide a tax receipt.

Reach out to the chosen non-profit to inquire about their car donation process. Ask about any specific requirements, such as the vehicle’s condition, the paperwork needed, and how the donation will be handled. The non-profit may provide you with donation forms or a vehicle donation packet. Some organizations can accept a variety of vehicles, such as cars, vans, trucks, trailers, boats, and RVs. This can depend on the condition, age, and operational status of the vehicle. 

Provide Car Information

A donor will likely need to provide key details about the car listed for donation. The charity organization can inquire about the make of the car, the year of manufacture, mileage, and overall condition. They can also request the car’s vehicle identification number (VIN) and a history of damages and significant repairs. The car donor is responsible for providing registration details for a background check.

The donor may specify when a car is inoperable or unable to meet car inspection standards, though some non-profit organizations will still accept vehicles that are not in running condition. Submitting a history report helps you provide historical data on major accidents, past ownership, manufacturer recalls, and servicing history. The donor can check whether the repair costs exceed the car’s value. Liaise with the charity to document transfer of ownership, vehicle possession, and transactional receipts.

Transfer Ownership

Transferring ownership of the vehicle’s title from the donor to the NPO requires accurate signing and documentation. The name listed on the certificate represents the person responsible for signing over the title. If the certificate names a bank lienor, the car donor is responsible for following the lien release protocol. The donor can either sign off on the certificate of title or request a letter of lien release from the bank. A release document declares loan clearance and relieves the bank from any interest in the car. 

When signing the title, follow the receiving organization’s instructions to avoid voiding the title. This includes signing in the correct area, verifying that all the required signatures are present, and providing any other necessary documents. Depending on the circumstances surrounding the auto donation, required documents can include copies of living wills, death certificates, or power of attorney forms.

Make an Auto Donation Today

An auto donation can offer transportation for NPOs or a resale asset for raising funds. Such contributions help create employment opportunities through services and placement programs that target those needing work. Choose an NPO based on how it aligns with your interests in contributing to a cause, whether you prefer a large-scale or community-level focus. Verify your vehicle’s eligibility, inquire about potential tax benefits, and complete the required paperwork today to donate your car.