Donating a car to charity is a great way to help a charity and rid yourself of a car you no longer want. In Maryland, the Maryland Motor Vehicle Administration (MMVA) has a set procedure for legally donating a vehicle. We want to tell you more about how you can donate your old car in Bowie, MD.
Procedure for Donating a Car to Charity in Bowie, MD
Choose a Charity
Once you’ve decided to donate your car, it’s time to decide which charity you’d like it to go to. Many people have particular charities that they support on an ongoing basis. If you don’t have a specific charity in mind, you could do an internet search to find a charity near you that supports a cause you believe in. There are thousands of charities, and you’re guaranteed to find one you’d like to support.
Check If They Can Receive a Car
Not all charities can receive cars as donations. The reason for this is cars require storage space and administration. When the charity wants to sell the car, they may not be able to organize the necessary paperwork or the people to do it. Many smaller charities can’t receive cars, and they usually ask that you sell the car and then donate the money to them instead.
It’s also important to check that the charity is registered as a 501(c)(3) corporation with the IRS. If it is, you should be able to deduct the value of your donation from your next year’s tax.
Complete the Paperwork
Once you’ve decided on a charity and they arrive to collect your car, you must legally transfer it to them. A donation is very similar to selling a car. You’ll complete the seller section of the certificate of title, and the charity representative will complete the buyer section. You’ll also need to create a bill of sale, which needs to be signed and dated by you and the charity representative.
The sale amount of the car needs to be filled in as “donation” or as “0”. You’ll also need to complete and sign an odometer disclosure statement, a lien release certificate if you had a lien on the car that you paid off, and a safety certificate.
Letter From the Charity
The charity will send you a letter within a few days of donating your car. This letter thanks you for the donation and provides the value of the car. A copy of this letter needs to be sent with your next tax forms to receive your tax break.
Once you’ve donated your car, you’re going to need a replacement. Come into DARCARS Honda and choose your next car from our amazing range of new and used vehicles.
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