How to Donate a Car to a Family Member
Donating a car to a family member is as simple as having the car appraised and then working with a charity or religious organization to arrange the donation. Vehicles valued at more than $5,000 should be appraised and valued by a professional; otherwise, Kelley's Blue Book is a simple way to learn the value of the vehicle. A straightforward and easy process, you can help a family member in need by following these steps.
Things You'll Need
Determine a valuation for the car using Kelley's Blue Book. Search by make, model and year to determine the value of the car (see Resources below).
Have the car inspected and photographed for your records.
Contact a charity to facilitate the donation. Explain you want the donation to count as a tax deduction and require a non-profit facilitator to take charge of the vehicle and then turn it over the family member. Establish the relationship and outline any hardship experienced by the family member. By establishing need, the non-profit is legally able to sponsor him and consider the donation as a valid outreach transaction. Unlike a normal benefit application, the charity organization would not need to search for a vehicle, as the vehicle that has already by put in its charge would be transferred to the family member (see Resources below).
Request a receipt or invoice from the charity. The tax receipt must include the charity's name and federal tax ID number, donor's name and the date of the donation. Keep a copy for your records in case the original is lost.
Contact the DMV to transfer the title of the vehicle to the family member. Contact your insurance company to affirm that you no longer own the vehicle.
Tips & Warnings
If additional car features, such as stereo equipment, rims, new tires or a new engine has been added to the car, add the cost of these items to the valuation of the vehicle. Make sure the organization is a registered 501(c)(3) charity and can legally accept and facilitate the donation.
Keep all receipts for your records.