How to Donate a Car to Charity in California: A Step-by-Step Guide
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Vehicles take up space, and if you have one you no longer use, why not donate it? Your generous donation can yield financial benefits to a cause you support. It can also give you a tax break. Many nonprofits accept unwanted vehicles, even if the car no longer runs. Some will even pick it up from your house, saving you time and towing fees. In this guide, learn how to donate a car to charity in California.
Choose a Reputable Charity
When you donate your car to charity in California, it will leave a positive impact. Select a charity that aligns with your values to make the most of your gift. Unfortunately, searching online for organizations that allow you to donate a car to charity in California can be difficult task. Some so-called charities may even be fraudulent.
The best way to find a reputable charity to donate to is to use the Registry of Charities and Fundraisers Search Tool or the IRS's Tax Exempt Organization Search Tool. Once you find charitable organizations you would like to donate to, contact the nonprofits directly. Many major national charities accept car donations. You can start the process using the charity's online donation form or call your local branch for details.
Understand the Necessary Paperwork
Donating a car to charity in California doesn't require too much effort on your part. Start by notifying the nonprofit of your choice. The charity's vehicle donation program may ask for basic information about the car, including its vehicle identification number (VIN), make and model, and whether it's driveable.
You must have a clear title to the vehicle to donate it. Charitable organizations generally won't accept cars with liens unless the lienholder agrees to a release and you have documentation to provide it.
California requires anyone transferring a vehicle to another owner to sign over the title. If your car has a California title, you can use Line 1 to sign your name. If there's a co-owner on the vehicle, they may need to sign the title, too. You must notify the DMV within five days of donating your vehicle using the Notice of Transfer and Release of Liability form.
It's not unusual for owners to misplace title documents. If you've lost yours, complete the California Application for Replacement or Transfer of Title and take it to the DMV. Use our DMV office finder to locate your nearest branch. You should receive a new title pretty quickly, allowing you to complete the donation process.
Assess the Eligibility of Your Vehicle
Many charities accept all types of vehicles, including cars, motorcycles, trucks, boats, and camper vans, even if they don't run. As long as your vehicle is in one piece, contains an engine, and is towable, most nonprofits will take it.
Let the organization know if you have any specific concerns about the car. A representative can address your inquiries and confirm its eligibility status.
Schedule Vehicle Pick-Up
You can ask the nonprofit to schedule pickup at a time that is convenient to you. When the tow driver arrives, you provide the vehicle's title and keys.
Try to position the car so it's easily accessible to the driver. You might park it in your driveway or along the curb, so there's little risk of the driver hitting other property when picking it up.
Prepare Your Car for Donation
Before the tow truck arrives, do a thorough once-over. Check the glove box, trunk, underneath the seats, and other spaces for your belongings. Be careful not to leave any license or registration information in the vehicle.
You don't need to thoroughly clean or detail the vehicle, but removing any loose trash or debris lessens the workload for staff receiving the car.
Obtain a Title Transfer
When you donate a car to a charity in California, you transfer its title. Sometimes, charities actually use donated vehicles, but most often than not, the car goes to auction.
Your role in the title transfer is signing and providing the document to the tow driver. You must notify the DMV of the title change using the Notice of Transfer and Release of Liability form. If the charity retains the vehicle, a representative will transfer the title to the organization. Otherwise, the auction winner will receive the title.
Get a Tax Receipt for Your Donation
Charities provide official tax receipts for donated vehicles. The receipt should include your name and the vehicle's sale price. If the car sells for under $500 or less, you can claim a deduction up to that amount or its fair market value.
Some vehicles sell for much more at auction. If that's the case for your car, you can usually claim the entire sales price as an itemized charitable contribution on Schedule A of your federal tax return. However, if the charity makes any significant alterations to the vehicle before the sale or plans to use it for operations, you may claim its fair market value at the time of donation.
Ready to Make a Difference By Donating Your Car? Get a Free Car Insurance Quote for Your Next Vehicle
Donating a car in California allows you to make a positive impact and get a tax deduction. However, you may need another vehicle to replace your old one. If that's the case, consider shopping for car insurance before heading to the dealership.
EverQuote helps drivers find cheap car insurance in California. We offer a free comparison tool to check rates from multiple insurers. Get started today with EverQuote!