Getting rid of your used car--or even an old motorcycle, RV, truck, boat or airplane, if you've got 'em--and donating it to charity isn't quite as easy as picking up the phone, but it's not difficult. If you have the title to the vehicle and it's still assembled, it can be donated. And if you donate your vehicle to charity, you can also take a tax deduction in certain cases.

• Inspect your automobile to discover exactly how bad a shape it's in, especially if it's very old or a junker. Write down all the problems with it that you know of.
  
• Choose a charity program to which you would like to donate your car. Some charities contract with car donation services to handle their donations. Try to find an organization that doesn't charge you a hefty fee to remove your vehicle.
• If you want to get a tax deduction for your car donation, make sure the charity fits the IRS write-off requirements.
• Find out the fair market value of your car, information you'll need in order to claim your "I-donated-a-vehicle" tax deduction.
• Contact the charity organization or vehicle donation program. Describe your car, specifying whether it's drivable and functional or a junk car. Ask them if your auto qualifies and makes you eligible to take the fair market value come tax time, or if you'll have to deduct the resale value. Make sure that within 30 days of the donation or sale they will send you a written acknowledgement (tax voucher) for when tax time comes around and you want to write off the donation.
  
• Wait for approval from the auto donation program.
  
• Once you've received the go-ahead , send them the title of your car. Arrange for pickup and inspection with the car donation charity.
• Handle the title transfer of the car according to the laws in your state. Usually you'll need to fill out a form with the DMV asserting you've made a car donation.
  
• Remove the license plates before physically transferring the vehicle to protect yourself from liability issues, unless the laws in your state forbid this.
  
• Make sure you receive the tax paperwork they promised.
• Don't be taken in by car donation scams or frauds.
  

The IRS details what records you need to keep to take your tax deduction from a donated vehicle in Publication 526.

Make sure you get the donation receipt for your tax records. The receipt should include:

• the car's specs--the year, make and model
• the name and federal tax ID number of the charity or religious organization
• your name
• the date
• whether or not the charity paid you anything in goods or services for the vehicle
  

Additional information may be needed, depending on how much the car is worth. See How to Get a Tax Deduction for a Car Donation for more detail on what forms you need to file.

Each state has different regulations on how to dispose of the title of your car and its license plates. Inform the authorities that you no longer are the owner of the vehicle, to protect yourself from further financial obligations tying you to the car. Specifically, contact:

• the Department of Motor Vehicles
• your insurance company

At tax time, file your taxes with the appropriate forms to get a tax write-off on the auto donation.

You should always include the car's title with the donation. Furthermore, you should handle the title transfer yourself. Don't give it to the charity to transfer. This is to protect yourself so you make sure your liability for the car ends.

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