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How Should You Prepare to Donate Your Car?

19 April 2022

Gwendolyn Fletcher

Donating a car to charity is typically a quick and easy process. If you have an older vehicle that you don't use anymore, a donation can be an excellent option to help a good cause while also scoring some tax benefits. However, the process is still a little more complicated than just handing your keys over and watching your old vehicle fade off into the sunset.

You should do a few things to prepare your car for its new life once you've decided on a charity you want to support. For instance, you could contribute to a car donation for veterans program. These three tips will help ensure your donation goes smoothly so that your old vehicle can start helping someone who needs it:

1. Check Your Documentation

Donating a car to charity is equivalent in most ways to selling your car to a private seller. You won't need much documentation, but you will need a clean title. You can't donate a vehicle if you still owe money on it or if there's a lien against the car for another reason. Likewise, a missing title can present issues unless your vehicle is old enough to forego this requirement.

Since it's easy to lose the title for an old, unused vehicle, you should ensure you have the necessary documentation before scheduling a pick-up. Most states usually have a relatively straightforward process to recover lost titles if necessary. Once you have a clean title in hand, you can start getting ready to donate your car.

2. Ask About Requirements

Charities have varying goals and requirements for the vehicles they accept as donations. Many charities will take any car you have, while others may only take running cars or cars that aren't too old. Before scheduling a pick-up, always ask about these requirements to avoid the charity sending a tow truck to your house for nothing.

You may also want to ask about any limitations. For example, you may be working with a charity that will take non-running cars, but they may not have a way to load vehicles with missing wheels or body panels. If your donation has any serious issues, it's best to mention them when scheduling your pick-up.

3. Determine How You'll Receive Your Receipt

To receive a tax deduction for your donation, you'll need to receive a tax-deductible receipt from the charitable organization. Some charities will provide this documentation at pick-up, but others may not. Likewise, some national charities contract with local towing companies instead of using their own trucks. In these cases, you'll usually receive your receipt in the mail later.

Donating your old car to a veteran who needs it is one of the easiest ways to contribute to your community. By taking a few steps to prepare, you'll be able to enjoy a smooth and rewarding donation process. 

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