Your Comprehensive Guide to Cars Vehicle Donation: FAQs Answered

Pre-Donation | Preparing for the Tow | Post-Pick-up Procedures | Understanding Title Transfer & Vehicle Sale | Tax Benefits of Car Donation

PRE-DONATION

• How can I donate my car vehicle?

Donating your car vehicle is a straightforward process! To begin, simply navigate to the “Choose a Nonprofit” section on our website. Select the nonprofit organization you wish to support and complete the online donation form. Alternatively, you can call us at 855-500-RIDE (7433) – our dedicated Cars Vehicle Donation Support Team is available seven days a week during business hours. They will guide you through the donation form over the phone and assist you in scheduling your complimentary vehicle pick-up. Many of our nonprofit partners also feature a vehicle donation page directly on their websites, offering another convenient starting point for your donation.

• What are your operating hours for vehicle donation inquiries?

Our Cars Vehicle Donation Support Team is available during the following hours (Pacific Time):

• Monday – Friday: 5:00 AM to 9:00 PM
• Saturday: 5:00 AM to 9:00 PM
• Sunday: 5:00 AM to 9:00 PM

• What advantages does donating my car vehicle to a nonprofit offer?

Choosing to donate your car vehicle to a nonprofit brings numerous benefits:

• Ease and Convenience: The donation process is simple, and vehicle pick-up is always free of charge.
• Skip the Hassle of Selling: Avoid the typical expenses and inconveniences of selling a car privately, such as advertising costs, insurance fees, and potential repair bills to keep your car in selling condition.
• Save on Ownership Costs: Stop paying for ongoing car expenses like registration, insurance, maintenance, and repairs.
• Free Up Space and Parking Fees: Reclaim valuable space at your home and eliminate parking costs.
• Better Than Trade-In Value: Donating often yields a better financial outcome compared to low trade-in offers from dealerships.
• Tax Deductible Benefits: Car vehicle donations are tax-deductible, potentially reducing your taxable income when you itemize deductions.
• Feel Good, Make a Difference: Donating your vehicle provides crucial support to a nonprofit organization, making a positive impact on their important work.

• What happens to car vehicles after donation?

Donated car vehicles are sold through established used-car markets. The proceeds from these sales provide vital funding for nonprofit programs and services that address needs in communities worldwide. CARS collaborates with an extensive network of both national and independent vendors to ensure each vehicle is sold effectively, maximizing the financial return for the nonprofit. We continuously evaluate vendor pricing and performance to refine our processes, ensuring the best possible outcomes for our nonprofit partners and to maximize the tax benefits for vehicle donors. For unique or specialized donated vehicles, we explore alternative sales channels to secure the highest possible funds for each donation.

• Can I donate my car vehicle to a nonprofit not listed on your website?

Yes, absolutely! If you wish to donate to a nonprofit that isn’t currently listed on our site, simply complete the secure donation form and include the name and address of your preferred organization. We will then contact the nonprofit to secure their approval for the car vehicle donation.

• What paperwork is required to donate my car?

To donate your car vehicle, you will typically need a current and clear title, free of any liens. If there is a lienholder noted on the title, it must be officially released by the financial institution. Specific requirements can vary by state, so it’s always best to check your local regulations.

• Is it necessary to provide my Social Security number when I donate?

Providing your Social Security number is not mandatory to initiate the car vehicle donation process. However, since the final sale price of your vehicle isn’t known at the time of donation, our Vehicle Donor Support Representatives may request your Social Security number. This is precautionary, in case your vehicle sells for over $500. Your Social Security number is required to generate Copy B of IRS Form 1098-C, which you’ll need to deduct the full value of your car vehicle donation when itemizing taxes. Without this form, the maximum deduction you can claim is capped at $500.

If you are not interested in claiming a tax deduction for your vehicle donation, or if you are certain your vehicle will sell for less than $500, you are welcome to decline providing your Social Security number.

• What kinds of vehicles are accepted for donation?

We consider all types of vehicle donations! Our aim is to accept a wide range of vehicles, whether they are running or not. This includes cars, trucks, trailers, boats, RVs, motorcycles, campers, off-road vehicles, planes, heavy equipment, farm machinery, and most other motorized vehicles. To confirm if your specific vehicle qualifies for donation, please fill out our secure online vehicle donation form or contact us toll-free at 855-500-RIDE (7433) during our operating hours.

• Are there any fees associated with car vehicle donation?

There are absolutely no costs to the donor. All expenses related to the car vehicle donation process are deducted from the gross sale price of the vehicle. In the rare instance where expenses exceed the sale price, CARS (Charitable Adult Rides & Services) covers the difference. Donating your car is truly free to you.

• When can I arrange for my car vehicle to be picked up?

Once you’ve been contacted by the assigned towing or vendor company, they will typically offer you a selection of time windows for your vehicle pick-up. These options are designed to accommodate your schedule while also considering traffic conditions and logistical factors in your vehicle’s location.

• How long does the entire car vehicle donation process take, from pick-up to when the nonprofit receives funds?

The complete sale process for your donated car vehicle typically takes around four to twelve weeks. After your vehicle is sold, the net proceeds from your generous donation are disbursed to your chosen nonprofit within five business days of CARS receiving the sale funds from the auction or direct buyer vendors.

• How will my donated car vehicle be picked up?

After you provide all necessary details through the online car vehicle donation form or via phone with our Vehicle Donor Support Representatives, we will arrange for a licensed tow company to pick up your vehicle at a time that works best for you. The vehicle will be transported to one of our sales locations for processing and sale – all at no cost to you.

• How quickly can my car vehicle be picked up?

In many cases, we can schedule your vehicle for pick-up during your initial call once the donation record is created. In other situations, within two to three business days, our towing vendor representative for your donation will contact you via call, text, or email using the contact information you provided in the donation form. They will work with you to set a convenient appointment time for your car vehicle pick-up. If you require a quicker pick-up, please inform our Vehicle Donor Support Representatives during your initial call, and we will make every effort to accommodate your timeline.

• Is car vehicle pick-up available in all 50 states?

Yes! CARS provides convenient car vehicle pick-up and towing services virtually anywhere across all 50 states. We handle vehicle donation processing in the contiguous 48 states and the District of Columbia without limitations. In Alaska, our service area covers Fairbanks and Anchorage within a 50-mile radius. In Hawaii, we serve the islands of Oahu and Hawaii. Whether you’re donating to a nonprofit out-of-state or have any questions about donating from your location, please start the process through our secure online car vehicle donation form or call us toll-free at 855-500-RIDE (7433) seven days a week during operating hours. We are here to assist you.

• Do I need the title to donate my car vehicle? What if I have title issues?

In most states, yes, you will need a current and clear title (without liens) for the nonprofit to accept your car vehicle donation. However, some states have specific exceptions. Any lienholder listed on the title must provide a release. Please consult the motor vehicle division in your state for precise instructions. Our team is also available seven days a week during business hours to provide guidance. If you do not have the title or are encountering title problems, please still call us at 855-500-RIDE (7433). Alternative arrangements may be possible in certain situations.

• Does my car vehicle need to be currently registered to donate?

The registration requirement varies depending on your state. Please call us at 855-500-RIDE (7433), and we will confirm the specific requirements for your location. Our Vehicle Donor Service Representatives have access to a 50-state guide detailing the necessary steps in each state and will advise you accordingly during the donation process.

• Is a smog certificate required for car vehicle donation?

No. Even in states that typically mandate smog certificates or safety inspections, you can still donate your car vehicle without these documents.

• My car vehicle is old or non-running. Can I still donate it?

Yes! We accept most car vehicles regardless of their running condition. However, the vehicle must be complete, towable, have an engine, and be accessible to a tow truck. To determine if your vehicle meets the donation criteria, please select a nonprofit, complete the secure online car vehicle donation form, or call us at 855-500-RIDE (7433). Our Donor Support Team is available seven days a week during business hours to assist you.

• Will you accept a car vehicle if the engine is removed or missing?

Typically, donated car vehicles must be complete. However, we evaluate all potential donations individually. If your vehicle is missing major parts, please inform us and provide photos if possible so we can assess the situation.

• What is considered “accessible for safe towing” for car vehicle donations?

For a car vehicle donation to be considered accessible for safe towing, it should ideally be parked in a front driveway, in front of your home or apartment building, or on a street, free from obstructions by other vehicles or objects. Tow operators usually cannot access vehicles located in backyards, back alleyways, underground structures, or areas without a direct path for their trucks. Ideally, all four tires should be inflated as well. We strive to accommodate every car vehicle donation, so if you are unsure about your vehicle’s accessibility, please let us know, and we will do our best to assist you.

• My non-running car vehicle is in a location where I need help pushing it out. Will the tow driver assist?

Donated car vehicles must be openly accessible for safe towing. We cannot guarantee that the vendor will be able to accept liability for pushing vehicles out of garages or underground structures with their larger trucks. If accessibility is a concern, please let us know, and we will explore possible solutions.

• What if I am donating a camper shell, boat, trailer, or other specialty vehicle?

For unique or specialty items included in your car vehicle donation, we may utilize specialized sales methods to ensure the highest possible return for your donation. To proceed with the donation process for these items, please email photos of each vehicle or item you wish to donate to photos@careasy.org. Please ensure each item is photographed separately.

• Do you accept junk or salvage titles for car vehicle donations?

Yes, we do accept junk and salvage titles for car vehicle donations; however, acceptance varies by state. Salvage titles are distinct from junk titles. Salvage titles indicate a vehicle that has been inspected and approved for road use again. A junk title typically signifies a non-operational vehicle, usually intended for parts. Please call us at 855-500-RIDE (7433) to determine if we can accept your salvage title in your state.

• My car vehicle is in another state, and I cannot be present for pick-up. Can I still donate it?

Yes! You can designate a point of contact (POC) to be present on your behalf when your donated car vehicle is picked up. Please provide us with the POC’s name and ensure they are prepared to hand over the signed title and keys to the tow vendor. If you cannot appoint a POC, please inform us, and we will do our best to assist you. Remember to remove all personal belongings from the vehicle before pick-up.

Alt Text: Tow truck driver preparing to tow a donated car vehicle, emphasizing the free and convenient pick-up service for car donations.

Preparing for the Tow

• Do I have to pay for towing when I donate my car vehicle?

No, vehicle donors never pay for towing! Car vehicle pick-up is entirely free of charge. All towing expenses are covered and are deducted from the vehicle’s gross sale price. Should towing costs ever exceed the sale price, CARS will cover those costs.

• Who will contact me to schedule my car vehicle pick-up?

The vendor representative assigned to your car vehicle donation will contact you to schedule the pick-up. They will use the contact information you provided on the donation form and may reach out via call, text, or email. Please be aware that you might receive a call from an unfamiliar phone number – this will likely be the vendor arranging your donation pick-up.

• How do I prepare for the tow driver, and what can I expect?

Before the tow driver arrives for your car vehicle pick-up:

• Remove all personal belongings from the vehicle.
• Have the vehicle title ready (unless you have received other instructions).

When the tow operator arrives, they will collect the title, keys, and vehicle. Please wait to sign the title; the tow vendor will guide you on where and how to sign it correctly. In most cases, the tow operator will also provide you with a donation receipt. If you do not receive a receipt, please call our Donor Support Team, and we will promptly send one to you.

• Should I remove the license plates from the car vehicle before donation?

Whether you should remove the license plates depends on the regulations of the state where your vehicle is registered. Some states require you to remove or surrender license plates after donating a vehicle. If your state mandates license plate removal, please make your best effort to remove them yourself. We cannot guarantee the tow driver will be able to assist with plate removal. To find out the specific requirements for your state, please call our Vehicle Donor Support Team. We can provide step-by-step guidance. You can also find information about your state’s requirements by clicking here.

• Can I drop off my car vehicle to save on towing costs for the nonprofit?

You can inquire about the possibility of dropping off your car vehicle when the vendor representative contacts you to schedule the pick-up. They can advise you on whether this option is feasible in your location.

• Is it necessary to wash my car vehicle before pick-up?

No need to wash your car vehicle before donation! Our vendors will prepare your donated vehicle for sale, which may include minor repairs, touch-ups, and a vehicle wash to maximize its sale potential.

• Does my car vehicle title need to be notarized for donation?

Whether your car vehicle title needs notarization depends on the specific requirements of the state that issued your title. Currently, CARS is aware that notarization is required for vehicle title transfers in the following states: Arizona, Kentucky, Louisiana, Montana, North Carolina, Oklahoma, Pennsylvania, and Wyoming. However, state requirements are subject to change. To confirm the notarization requirements for your state, please visit your state’s motor vehicle department website and look up title transfer information. (Notarization is used to prevent fraud by verifying identity before title transfer. Some states require title notarization before vehicle donation.)

Alt Text: Close-up of a car vehicle title, highlighting the importance of a clear title for successful car donation and title transfer process.

Post-Pick-up Procedures

• What steps should I take after my car vehicle has been picked up?

After your car vehicle is picked up, the next important step is to notify your state’s Department of Motor Vehicles (DMV) about the vehicle donation and that you are no longer the owner. It is crucial to notify your state only after the vehicle has been physically picked up. Click here to find the specific steps for notifying your state about your vehicle donation.

• What is State Notification in the context of car vehicle donation?

State notification is the process of informing your state’s DMV that you have donated your car vehicle and are no longer responsible for it. This action releases you from liabilities associated with the vehicle, such as future registration fees and the requirement to maintain insurance. State notification creates an official record that you have relinquished ownership. The specific steps for state notification vary by state. Depending on your state’s requirements, this may involve surrendering your license plates, canceling your vehicle registration, or filing a notice of transfer or report of sale. State notification should always be completed before canceling your car insurance. Click here to learn the steps for notifying your state after your car vehicle donation.

• Do I need to personally notify my local DMV when I donate my car vehicle?

Yes, if state notification is required in your state, it is the donor’s responsibility to complete this process. Please do not rely on the tow driver or the vendor to report your car vehicle donation to the State/Motor Vehicle Department. Click here to access instructions for notifying your state after donating your car vehicle. If you require assistance, please contact our Vehicle Donor Support Team at 855-500-RIDE (7433) seven days a week during operating hours, or email donorsupport@careasy.org. Our representatives can provide you with the necessary steps for each state.

• When should I cancel my car insurance after donation?

Crucially, only cancel your car vehicle insurance AFTER you have completed state notification. If your state requires notification, never cancel your insurance before reporting to the state that you are no longer in possession of the vehicle. This is a general rule for states that require notification or license plate return.

• What if an issue arises with my car vehicle after it’s donated?

Once your car vehicle has been picked up, we assume full responsibility for it. In the rare event that you receive any notifications regarding lien sales, DMV actions, traffic violations, or other issues related to your donated vehicle, please contact us immediately at 855-500-RIDE (7433) for assistance. Note that you remain responsible for any fines or fees incurred prior to the vehicle pick-up. For specific questions related to your DMV, please consult your state’s DMV directly for clear guidance.

Alt Text: A hand holding donation paperwork, emphasizing the important documentation involved in car vehicle donation and the subsequent tax deduction benefits.

Understanding Title Transfer & Vehicle Sale

• What is the Title Transfer Process for car vehicle donation? Who handles it?

The title transfer process for car vehicle donation varies from state to state. Our vehicle donation program and our vendors/auction yards are experienced in guiding you through the correct steps to ensure your title paperwork is properly transferred at the time of your vehicle pick-up. They will assist you in completing the necessary documentation.

• What exactly is a car vehicle title?

A title is a legal document issued by your state’s motor vehicle division or DMV that establishes proof of legal ownership of the car vehicle. It is essential for transferring ownership during a donation.

• Where can I locate my car vehicle title number?

The location of the title number on your car vehicle title differs by state. It is typically labeled as ‘Title Number’, ‘Control Number’, ‘Certificate Number’, or ‘Document Number’. If you are having trouble locating it, please call our Vehicle Donor Support Team at 855-500-RIDE (7433), and we can assist you in finding it.

• When is the correct time to sign over my car vehicle title?

Please wait to sign the car vehicle title until you have discussed it with the tow vendor. They will guide you on the precise location and method for signing the title correctly to ensure proper transfer.

• Who is considered the purchaser of my donated car vehicle? Is it the nonprofit?

The nonprofit or charity to which you are donating your car vehicle is not the purchaser. The purchaser will be either the vendor or Charitable Adult Rides & Services (CARS), depending on the sale process.

• If multiple owners are listed on the title, do all parties need to sign for car vehicle donation?

Yes, if the word “and/or” is not present between the names of the listed owners on the car vehicle title, then all listed parties are required to sign the title to complete the donation.

• How can I determine if there is a lien on my car vehicle title?

Typically, if there is a lienholder or finance company associated with your car vehicle, it will be indicated on the face of the title. This is usually printed and may include a signature from a lender representative. If this information is not on your title, you will need to provide a separate lien release letter from the lienholder. If you have any questions about liens, please email titles@careasy.org for clarification.

• During the sale process, how can I check on the status of my car vehicle donation?

We are available seven days a week to assist you. Please call us at 855-500-RIDE (7433) or email donorsupport@careasy.org to inquire about the status of your car vehicle donation or if you have any other questions.

• Will I be notified when my donated car vehicle sells?

Yes, once your car vehicle is sold, our Vehicle Donor Support Team will send you a thank-you letter on behalf of the nonprofit benefiting from your donation. This letter, which serves as a copy of your initial tax receipt, will be sent either via email or postal mail. If your vehicle sells for more than $500 and you have provided your tax identification number, you will also receive IRS Form 1098-C, ‘Contributions of Motor Vehicles, Boats, and Airplanes’, mailed to you within 30 days of the sale. This form will detail the gross proceeds received from your car vehicle donation.

• How are donated car vehicles sold?

CARS partners with a network of over 400 vendors nationwide to sell donated car vehicles. Each donation is individually assessed to determine the most effective sales approach. In most markets, we have access to multiple sales channels to direct vehicles to the optimal buyer. Vehicles may be sold through auctions, to private buyers, or to salvage yards. Our extensive vendor network allows us to be competitive with our inventory and leverage our volume to increase prices, maximizing returns for nonprofits and tax benefits for donors.

• Are donated CARS sold at auction?

In the majority of cases, donated car vehicles are sold through auction facilities. We carefully evaluate each vehicle to identify the best potential buyers. Our assessment includes factors such as year, make, model, location, and resale potential. We also monitor the sales process to ensure maximum returns. High-value or specialty vehicles are individually evaluated and sold through channels that can achieve the highest market value.

• Do you repair car vehicles before selling them?

Whether we repair a donated car vehicle before sale depends on its condition as reported by the donor. Our goal is to prepare each vehicle to be in the best possible sale-ready condition to maximize its value. This may include making minor repairs or fixes to enhance its appeal to buyers.

• How long does the car vehicle sale process typically take?

The entire sale process for a donated car vehicle can range from approximately four to twelve weeks. However, in some instances, the sale process may extend beyond 12 weeks. This can occur if we are holding onto the vehicle to aim for a better sale price or due to other market factors.

Alt Text: A donated car vehicle being auctioned at a used car auction, illustrating the typical sales channel for donated vehicles and maximizing returns for nonprofits.

Tax Benefits of Car Donation

• Are car vehicle donations tax-deductible?

Yes, car vehicle donations to qualified nonprofits are tax-deductible in the United States. However, individual tax situations can vary. For specific tax-related questions and advice, please consult your tax advisor or refer to IRS Publication 4303.

• How is the value of my tax deduction for a car vehicle donation determined?

Most car vehicles are sold through wholesale auctions, and we strive to achieve the highest possible return for each vehicle to benefit the nonprofit. According to IRS guidelines, donors can claim the fair market value of their car vehicle donation, up to the actual sale value. If a vehicle is sold for more than $500, the maximum deductible amount is limited to the vehicle’s sale price, which will be documented on IRS Form 1098-C. A special rule applies if the donated vehicle sells for $500 or less. In this case, you can deduct the lesser of either the vehicle’s fair market value on the donation date or $500, provided you have written acknowledgment (such as the initial donation receipt or the thank-you letter you receive after the donation is processed).

• How do you define the Fair Market Value of a donated car vehicle?

The “fair market value” of a car vehicle is the price at which it could reasonably be sold in its current condition between a willing seller and a willing buyer in a private sale. This represents the cash value you are forgoing by making the donation. A convenient resource for determining fair market value is online valuation guides like Kelley Blue Book (https://www.kbb.com/company/faq/new-cars/#whatIsFairMarketRange), which provides private party sale values.

• How can I request a donation or tax receipt for my car vehicle donation?

To request a donation or tax receipt, please call us at 855-500-RIDE (7433) during our operating hours, or email donorsupport@careasy.org. We will be happy to assist you with your request.

• Will my car vehicle donation count for the tax year in which I submit the donation form?

Yes! As long as you submit your car vehicle donation form by December 31st for a vehicle with a clear title, you may be eligible to claim a tax deduction for the same tax year.

• Where can I find more information on IRS tax deduction requirements for charitable car donations?

You can find additional details on IRS tax deduction requirements in these IRS publications:

• IRS Publication 526, Charitable Contributions
• IRS Publication 561, Determining the Value of Donated Property
• IRS Publication 4303, A Donor’s Guide to Vehicle Donations
• IRS Form 8283, Noncash Charitable Contributions
• IRS Instructions for Form 8283, Noncash Charitable Contributions

If you have further questions, please feel free to contact us toll-free at 855-500-RIDE (7433) seven days a week during our operating hours.

• Will I automatically receive a donation tax receipt for my car vehicle donation?

Yes, in most cases, you will receive an initial donation receipt from the tow driver at the time of your car vehicle pick-up. This initial acknowledgement will include your name, as well as the year, make, model, and condition of the donated vehicle. If you do not receive a receipt at pick-up, please contact our donor support team, and we will ensure one is sent to you. You will also be mailed a thank-you letter on behalf of the benefiting nonprofit within 30 days of the vehicle sale, which also serves as a tax receipt. This thank-you letter will be your final tax document if your vehicle sells for $500 or less. If your vehicle sells for more than $500 and you have provided your tax identification number, CARS will also mail IRS Form 1098-C, ‘Contributions of Motor Vehicles, Boats, and Airplanes’, to you within 30 days of the sale, detailing the gross proceeds from your donation.

• What if my donated car vehicle is valued at over $5,000?

The tax deduction you can claim for a donated car vehicle is typically limited to the gross proceeds received from its sale. If your vehicle sells for more than $5,000, you will need to complete Section B of IRS Form 8283 and obtain an acknowledgment signature on the form prior to claiming the deduction. This completed form must be included with your income tax return. If your car vehicle sells for over $5000 and you contact CARS directly to request IRS Form 8283, one of our Donor Support Representatives will flag your record for 8283 Form assistance. Our Senior Accounting Representative will then email you the pre-filled 8283/8282 Tax Form with your information and the nonprofit details. The nonprofit will then complete the signature section and mail the hard copy of Form 8283 back to you. The nonprofit will retain a copy of Form 8283 and a hard copy of Form 8282 for their records, and your donation record will be noted. If your vehicle sells for over $5000 and you contact the nonprofit directly to request IRS Form 8283, the nonprofit will then email CARS for assistance in providing the pre-filled Form 8283. CARS will email the pre-filled 8283/8282 Tax Forms to the nonprofit. The nonprofit will then mail the signed hard copy of Form 8283 to you and keep copies of both Forms 8283 and 8282 for their records. Your donation record will also be updated.

• What is the latest date to donate my car vehicle and still have it count as a tax deduction for the current year?

CARS allows donors to contact us and pledge their car vehicle donation to their chosen nonprofit as late as 11:59 PM on December 31st to potentially qualify for a charitable contribution tax deduction for the same tax year*. The donation is time-stamped based on the day you initially contact us and provide your donation information. For example, your donation receipt may reflect December 31st even if the vehicle pick-up is scheduled in January. *To qualify for a tax deduction, the car vehicle must be picked up and sold in a timely manner, with all required paperwork submitted and completed.

• I donated earlier this year but haven’t received my tax receipt. Can you resend it?

We would be happy to help you. Please call us at 855-500-RIDE (7433) during our operating hours, or email donorsupport@careasy.org. Simply let us know you need a replacement receipt, and we will assist you.

• Will my car vehicle donation count for the tax year I submit the donation form, even if I don’t get the receipt until the following year?

Yes! As long as you submit your car vehicle donation form by December 31st for a vehicle with a clear title, your donation can still qualify as a charitable contribution for the same tax year. *To be eligible for a tax deduction, ensure the car vehicle is picked up, sold, and all necessary paperwork is submitted and completed in a timely fashion.