Now more than ever, cash-strapped non-profits need financial
support, and donating your car can be a great way to help. It's also very
generous.
It's also important to remember that you can only take a
charitable deduction if you itemize your deductions. So, before you give away
your car, just make sure you've done the math and it makes sense for both you
and the non-profit.
Pick a Charity
It's very easy to give money or an in-kind donation to a
non-profit. The hard part is making sure the non-profit deserves your gift and
that you are confident the organization is spending its resources wisely.
The first step is to identify a charity that engages in work
that is meaningful to you. For some, that will be helping to feed poor
children; for others it will be the local animal shelter, and for others still
it will be their religious institution.
There are thousands of non-profits to choose from. The most
important thing to verify is that the charity you choose can receive
tax-deductible gifts. Most of the time that means it must be registered with
the IRS as a 501(c)(3) nonprofit.
Ensure You Can Donate Your Car
Once you've identified a couple non-profits in the area
you'd like to support, find out if they accept used cars as gifts. Not all
non-profits are equipped to handle that type of donation.
If they do accept cars as gifts, you can then narrow down
the list. You can do this by checking each organization'sCharity Navigator
rating. You can also look up their tax filings on Guidestar, where you can see
their financial profile and how much their highest paid employees are
compensated.
Additionally, another great way to research a charity is by
visiting the non-profit to form your own opinion of the work they do.
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Tax Deductions for Donated Cars
The deduction you can take on your tax return is based on
the fair market value of the car. You can start to determine that by visiting
Kelley Blue Book or the NADA Guides, which both have excellent used car rating
tools.
However, keep in mind that these book values are
generalizations.
For example, if you determine that your car is worth $5,000,
but you know it doesn't start because it needs a new battery, the fair market
value is $5,000 minus the price of replacing the battery.
You can learn more about taxes and your donated car by
visiting our Tax Deductions & Car Donations page.
DMV Requirements for Donations
From the perspective of the DMV, donating your car is
similar to selling your car. All the paperwork for a title transferplus
canceling your registration still applies. The exact steps you'll need to take
will vary from state to state. Contact your local DMV office for specific
requirements and details.
How to Transfer a Car Title in California
Changing ownership of any vehicle requires a transfer of
title in California. To transfer a title:
• Seller
must complete the appropriate sections on the title..
• Vehicle
must pass a smog check, unless exempt.
• Buyer
must provide the ownership documents to the CA DMV.
• Buyer
visits the local DMV office.
• Buyer
pays the $15 vehicle title transfer fee and taxes within 30 days.
• For more
details, please continue reading.
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Buying a California Vehicle
Buying From a Dealer
Car dealerships take care of all the fees and paperwork
required when purchasing a vehicle. As the buyer of the vehicle, it is your
responsibility to know your Car Buyer's Bill of Rights and make sure the
contract, purchase price, and additional costs are all correct before you take
the vehicle home.
Buying From a Private Individual
When buying:
• Make sure
the seller has filled out the title.
• Verify
there is no lienholder, or that the lienholder has signed off on the car title.
• Verify
the mileage and the odometer disclosure statement, if required.
• Complete
a smog check.
• Pay the
$15 vehicle title transfer fee and all use tax fees to the CA DMV within 30
days of the purchase date (failure to do so will result in penalties).
Notify the CA DMV you have purchased a vehicle within 10
days of taking possession.
Selling a Vehicle
When selling:
• Provide
the title of the vehicle, making sure to sign it (if you do not have the title,
apply for a duplicate title).
• Have the
lienholder sign the title, if applicable.
• Fill out
the odometer reading if the vehicle is less than 10 years old (must be verified
by the buyer) and submit the Vehicle/Vessel Title Transfer Form (REG 262) (this
form is printed on security paper and is only available at CA DMV offices, or
by calling (800) 777-0133.
• Provide
smog check certification, if applicable. The certification must be current; it
cannot be older than 90 days.
• The buyer
must sign the title and all other applicable documents.
• Submit a
Notice of Transfer and Release of Liability form REG 138 within 5 days of the
sale date. If you're up against the clock, use the online form.
Bill of Sale
If you don't need to verify the odometer reading during the
sale of the vehicle, use a Bill of Sale (REG 135) instead of the Vehicle Vessel
TransferForm (REG 262). After completing, give the original to the buyer and
make a copy for yourself.
If, however, if you are required to report the mileage, you
must complete the Vehicle Vessel Transfer Form (REG 262) if the title does not
provide a place to report it. This serves as an odometer disclosure form, bill
of sale, and power of attorney. This form cannot be downloaded. You can get it
from any CA DMV office. Or, have the form mailed to you by calling (800) 777-0133.
Transferring a Vehicle as a Gift
You may decide to give your vehicle away instead of selling
it. These types of gifts fall into two different categories:
• Family or
Inheritance
• Gifts or
Donations
The transfer process is very similar to selling a California
vehicle (see above), with minor differences for each process.
NOTE: You cannot transfer a vehicle to a family member or
trust until you've paid all parking/toll violations that have been reported to
the California DMV.
Family or Inheritance
You can transfer your vehicle to family members without
providing a smog test or paying the use tax. Family members who qualify
(including step, half, and adopted family members) are:
• Parents
• Children
• Grandparents
• Grandchildren
• Spouses
• Siblings
(smog certification may be required if a smog test is due)
• Domestic
partners
All other family members must follow the steps outlined in
the Gifts or Donations section below.
To transfer the title to a family member:
• Provide
the title of the vehicle, making sure to sign it (if you don't have the title,
apply for a duplicate title).
• Have the
lienholder, if applicable, sign off on the title. This allows the sale of the
vehicle.
• Complete
the odometer reading if the vehicle is less than 10 years old (must be verified
by the buyer) and submit the Vehicle/Vessel Transfer (REG 262). This form is
unavailable online. Grab it from any CA DMV office, or call (800) 777-0133 to
have it mailed to you.
• Have the
buyer, which in this case is the recipient of the vehicle, sign the title.
• Complete
the Notice of Transfer and Release of Liability (REG 138) within 5 days of the
title transfer date.
Gift or Donation
To make a gift or donation, follow the same steps described
directly above when transferring to a family member. The lone difference being
you may need to provide smog certification. The certification must be current,
no older than 90 days.
Depending on the organization, you may be eligible for a tax
exemption for the value of the vehicle. Ask the charitable organization for
documentation of the donation.
Receiving a Vehicle as a Gift
Whenever you receive a vehicle from a family member, both
the use tax and the smog test can be waived. See the Family or Inheritance
section (above) for a list of family members who are eligible for family
transfers.
If you are not a family member, you can still receive a
vehicle as a gift and have the use tax waived. You will, however, still need to
get a smog certification.
Receiving a Vehicle from a Family Member
When receiving a vehicle from a family member:
• Make sure
the seller (the person giving you the vehicle) has filled out the title
properly.
• Verify
there is no lienholder, or that the lienholder has signed off on the title.
• Sign the
title.
• Verify
the mileage and the odometer disclosure statement, if applicable.
• Complete
a smog check, if applicable. In some instances, adult siblings transferring a
vehicle may be required to complete an emissions certification.
• Submit a
completed Statement of Facts (REG 256) for use tax and smog waivers.
• Pay the
$8 smog transfer fee (part of the smog check process.)
• Pay the
$15 title transfer fee (when submitting all the paperwork at the DMV.)
You have 10 days from the sale date to submit the transfer
fees to the CA DMV.
Receiving a Vehicle as a Gift or Donation
When receiving a gifted vehicle:
• Make sure
the seller (the giver, in this situation) has completed the title.
• Confirm
there's no existing lienholder, or that the lienholder has signed off on the
title.
• Sign the
title on the designated buyer line.
• Verify
the mileage and the odometer disclosure statement, if required.
• Complete
a Statement of Facts, indicating the current value of the vehicle.
• Complete
a smog certification.
• Submit a
Statement of Facts (REG 256). This form is required for a use tax waiver.
• Pay the
$15 transfer fee.
You must submit the transfer fees to the CA DMV within 10
days of transfer date.
Removing a Lien From a CA Vehicle
When all the payments have been made on your vehicle, the
lienholder will mail you a signed vehicle title.
Within 30 days of receiving the title, send it to the DMV,
along with a $15 transfer fee, to get a new title issued in your name. Mail to:
• Department
of Motor Vehicles
• Vehicle
Registration Operations
• P.O. Box
942869
• Sacramento,
CA 94269-0001
Lost Title
Can't find your car title? You'll need it to transfer your
vehicle. Visit our Replacing a Lost Title page for step-by-step information on
how to order a new one.
California Smog Certification
Need a smog check? Or are you unsure whether your county
requires smog certification? Check out our Smog & Emission Checks page for
the full scoop.
California Title Name Corrections
California law requires your correct legal name on your
vehicle title. You must update your title if your name has changed for any
reason, or the name on the title is incorrect.
If you have your title:
• Update
your vehicle's title by writing the new or corrected name in the “New
Registered Owner" section.
• Fill out
a Statement of Facts (REG 256) as to why the name has changed or needs to be
corrected.
• Submit
both documents to your local CA DMV office.
If a lienholder has the title:
• Submit a
Statement of Facts (REG 256) to the lienholder.
• Instruct
the lienholder to send the Statement of Facts to the CA DMV.
CA Title and Registration Fees
You must pay certain fees whenever you receive a vehicle and
transfer its title to your name.
For more information on registration fees and registering your
car in general, visit our Car Registration page.
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