subject: How to Donate a Car in Texas [print this page] How to Donate a Car in Texas How to Donate a Car in Texas
Donating a vehicle that is not valuable or useful to you anymore is one way of making a charitable donation. The donation of a car can help an organization provide services for those who need them in the Lone Star state. There are hundreds of 400 and 501 c3 non-profits in Texas to choose from.
You need the title to the car that you are donating. If you do not have one you can apply for a replacement with the Texas Department of Motor Vehicles. You must sign the back of the title in order to turn it over to the organization that you are donating the vehicle. Do not cancel your liability insurance until you've cancelled your registration. Be sure to cancel your registration so that you do not incur tickets or other violations that can be applied to your driving record.
Once the donation center receives your information, either via phone or online, they will then get in touch with a local towing company. In turn the towing company will then get in touch with you and coordinate a time and place that they can pick up the vehicle. Free vehicle donation pick up is available in most cases and donations of cars will be accepted whether they are running or not.
According to current IRS regulations, all donations are tax deductible. You should receive a tax receipt once the car is in the organization's possession. Often the towing company driver will pass you the tax form if the car is valued under $500.
To find out what the value of your vehicle is, visit Kelly Blue Book website. Most cars will be sold at auction. For example, if your car sells for $500 or less you can deduct the fair market value. When evaluating your car's worth you must use the private part valuation option. The tax letter would then state that your car sold for $500 or less and will include the following information:
Your name
Address
VIN# (Vehicle Identification Number)
Charity name
Tax ID#
The donation date and the sale date
Some charities will fix up the vehicle and give it to a person of need. They may require a small fee for the car according to the client's ability to pay and the worth of the car. Some non-profits will require that the client do service work for a period of time to pay off the car. The regulations would be different than an outright donation. You can find the information you need in A Donors Guide to Car Donations.
Donation centers are located in different areas of Texas but are contracted with multiple towing services so that they can accommodate pick up in most locations of the state. Some of the major cities that they have agents in are: Dallas, Arlington, Plano, Austin and other surrounding areas.
