How to Donate a Car in California?
Donating a car in California is a great way to get rid of an unwanted vehicle while also supporting a charitable cause. Here are the steps to donate a car in California:
Choose a charitable organization:
There are many charities that accept car donations in California, including national organizations like Goodwill and the American Cancer Society, as well as local organizations such as food banks, schools, and animal shelters.
Check the organization's eligibility:
Before donating your car, make sure the organization is eligible to receive tax-deductible contributions. You can check this by looking up the organization's status on the IRS website or by asking the organization directly.
Transfer ownership:
Fill out the transfer of ownership section on the vehicle's title and sign it over to the charity. Make sure to remove your license plates and any personal belongings from the vehicle before handing it over.
Complete the release of liability form:
Complete a Release of Liability form and submit it to the California Department of Motor Vehicles (DMV) within five days of donating your car. This protects you from any liability for the vehicle after it has been donated.
Arrange for pickup or drop-off:
Depending on the organization, they may offer to pick up the vehicle for free, or you may need to drop it off at a designated location. Make sure to confirm the details of the donation process with the organization beforehand.
Get a receipt:
After the donation is complete, the organization should provide you with a receipt that includes the date of the donation, the name of the organization, and a statement indicating whether you received any goods or services in exchange for the donation. This receipt will be important for claiming your tax deduction.
Claim your tax deduction:
You can claim a tax deduction for the fair market value of the vehicle on your federal tax return. If the organization sells the vehicle for more than $500, they will provide you with a Form 1098-C that shows the gross proceeds from the sale. If the vehicle sells for less than $500, you can use the receipt from the organization to determine the value of the deduction.
Donating a car in California is a simple process that can benefit both you and the charity you choose to support.
