Find a Charity

• There are a number of non-profit organizations that accept car donations. However, donations made to these organizations may not qualify for tax-deduction. While choosing an organization to donate a car, make sure that the charity has a 501 (c)(3) public charity status with the IRS. Certain non-profit organizations, such as Disabled American Veterans, have a 501 (c)(4) status, and charities made to these organizations are not tax deductible.
  
  

Paperwork Needed for Car Donations

• It is best if you have your original Certificate of Title (pink slip) with you at the time of car donation. In case you have misplaced your pink slip, you need to get forms Reg. 227 and Reg. 262 from the California Department of Motor Vehicle (DMV). Complete both these forms and hand them over to the person who comes to pick up the car. Also, remember to leave the license plates on the car, as in California license plates must remain with the car at all times.
  
  

Releasing Liability of the Car

• Once you have handed over the keys of your car to the charity, you need to inform the DMV that you are no longer liable for anything that happens with the car. In order to do this, you must fill out the release of liability form attached to the title and send it to DMV. If you do not have the form, you can find a duplicate form on the DMV Web site. You may also fill and submit this form online through the DMV Web site.
  
  

Getting the Tax Deduction

• When you give your car to charity, your charity will most probably sell the car to raise money. After it sells the car, it will send you a receipt of the sale, indicating the exact amount for which the car was sold. If the car was worth more than $500, you must complete IRS form 8283 and attach it with your tax returns.