Donating an old car to a charity is a great way to give back. That old clunker may be an eyesore to you, but it can be a godsend to a charity. Not only that, but the tax breaks you can get for the charitable donation are nothing to scoff at. But to make the donation, you'll first need to know how to transfer your title.

Find Charity

Not all charities accept auto donations, nor are all organizations that accept donations really charities. You'll first want to make sure the charity you want to donate the car to accepts such contributions. You'll also want to make sure the charity is legitimate. Make sure the charity is organized as a nonprofit, 501(c)(3) organization. If you're not sure, call them or research them on the Internet.

Assigning Title

Every time you buy or sell a car, the title has to be transferred. This is no different when you donate your car to charity. To do this, you first have to have title to the car you want to give. This will be in the form of a sheet of paper notarized with the name of the buyer, the seller and probably with a seal of the state in which the car was sold. On the back of the title there is a space for transfer information. If that space is already filled out, you'll need to contact the state department of revenue or motor vehicles to get a new copy of the title. Once you have that, you can then fill out the transfer.

Accounting for Donation

If the car is worth less than $500, you don't have to fill out any special Internal Revenue Service forms. If the value is more than $500, you'll need to claim the deduction with form 8283. Also, if your car is valued more than $5,000, you'll need to have the tax form signed by an appraiser who determines the value of the car.

Source:

IRS.gov: IRS Officials Urge Care for Those Making a Car Donation;

DMV.org: Title Transfers