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Tax Deductable Car Donations

Requirements and Assistance

Charitable donations are always welcome, but it’s not as easy as just dropping off a bad of outgrown clothes or old dishes. When donating a car to a charitable organization, there are a number of requirements that must be met before the donation can be delivered.

Title Requirements for Donations

Most charitable organizations will require that the donor transfer the car title to the name of the charity. In most states, this has to be done through the local Department of Motor Vehicles. In other cases, there are laws that state a third party, such as a representative of the charity, can have the title transferred to his or her name.
Also, make sure that you remove your license plates before you transfer the car.  This can save you the $200+ fee to purchase a new license plate for your new cars.

Tax Assistance for Donations

Donating your car can be a complicated affair, but thankfully there are a number of places to find assistance.  These sources of assistance can help you find the perfect organization to donate your car to, and take you through the process step-by-step.  
The first source of assistance is always the charity that you are donating to. You should seek out your charity to view copies of their tax exemption certificate, determination letter, and recent annual information.  The only exception to this rule is that some charities do not have to file for determination.

Second, you should approach your state’s charity office.  You can find a listing for your state through the National Association of State Charity Officials. The exact details of the state requirements for charity listings will vary from state to state.

Third and last, the most comprehensive source for assistance will always be the IRS.  All of the information that the IRS offers is available on the web at On the website, you will be able to find all of the tax forms and publications that you need.  If there are any questions that you have that are not answered by these forms, call the toll free customer service number at 877-829-3676 or visit your local IRS office.
The IRS should also be contacted in the event that you have a complaint or a concern about a charity.


Donating your car, or anything, can be a great way to help people in your community while garnering a tax deduction for yourself. If you have any questions or concerns, it is best to consult with a tax professional, professional accountant, or IRS agent to have all of your questions answered before you begin the process of donating your vehicle.  Having all of the information on hand before you begin can save you from a potentially costly IRS audit later on. Spend a little time collecting all of the information, paperwork, and other things that you will need.

Keep in mind that even though it can be a daunting task, donating your car or other items can be a great way to help the people in your community.

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