How to Donate a Car Without a Title
It is still possible to donate a car even if the title has been lost or misplaced. Other paperwork can be used in place to show the owner of the vehicle. Many companies will not take a donation vehicle without a title but some do take a no title car as a junk car donation. This junk car will be dismantled and then used for parts. See what options are available before you send the car the junk yard as there are options.
1. DMV Registration
It is possible to show proof of ownership through the DMV registration. With this information, it is possible to obtain a replacement title. It is possible to get a notice of transfer and release of liability or an application for duplicate title. These 2 forms can help to get a title or it is possible to donate the vehicle without this document.
2. Donation Company
Find a company that will accept a car donation. There are many companies that function nationwide besides those that may be local. A good place to check is the local church or other nonprofit organizations. They will be able to point you towards a reliable and legitimate donation company. If you are having trouble then use a search engine.
3. Check for Legitimacy
Ensure that the company is legitimate. Ask as many questions as you want. Check if the charity will allow you to write off the car as a tax deduction. Make sure you inquire about how much of the car sale proceeds go to the charity and how much the actual donation company keeps. Some companies will donate the gross amount while others will only give out a percentage of the proceeds.
4. No Title
If it was not possible to obtain a duplicate title then call the charity. There are many charities that will still take the donation as long as the Department of Motor Vehicles will ensure that there are no liens on the car. Many will accept a notarized signature in place of the title.
5. Pick Up Arrangements
Arrange if the car will be picked up and towed or if you will drop the vehicle off. To ensure that the charity gets as much money as possible, it is best to drop the car off. The charity will need to hire a driver or tow truck to pick up the vehicle which will come out of the proceeds of the sale of the vehicle.
6. Tax Deduction
If you want to claim a tax deduction on the donation then it will be necessary to get a receipt from the charity. Determining the fair market value of the car as a ridiculous price will cause the IRS to become suspicious. Try to find the value on blue book or other value guides. To ensure that the car donation can be claimed make sure the charity is 501©3 IRS registered. If the company is not registered, then it you cannot claim the deduction.
Watch Out for Hidden Costs
Most charities will pick up the car for free so there is no additional expense to you. Have everything in writing first to ensure there are no hidden costs.