How to Donate a Car in Florida: A Complete Guide for Drivers
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If you have a Florida vehicle you no longer need, you might consider donating it to a worthy cause. Donating a car in Florida helps charities raise money for their operations and may give you a tax break. Plus, you'll feel good knowing your donation helps support others in need. In this guide, learn how to donate a car in Florida.
Understanding Car Donations in Florida
Many charities are open to accepting donated vehicles. Most nonprofit organizations will take the car and sell it at auction. Some may transfer the vehicle to a needy person at a negligible price or use it for the organization's transportation needs. Wherever your car ends up, you'll get the satisfaction of knowing it helped someone rather than gathering dust in your driveway.
If you decide to donate a car in Florida, you'll notify the charity. They will typically arrange to have the vehicle towed from your house for free, and you'll sign the title over to them. Once the charity sells the car, you'll receive a tax receipt that informs you of the vehicle's sale price. You can use this information to claim the appropriate tax deduction on your federal income tax return.
Selecting the Right Charity for Your Vehicle
Hundreds of charities accept car donations, but not all are legitimate. It's wise to research different charities before committing to a donation. A good rule of thumb is to donate to charities you're already familiar with rather than choosing the first one that pops up in your search engine.
A few national nonprofit organizations that accept car donations include the American Red Cross, Goodwill, the American Cancer Society, and Habitat for Humanity. However, you can check with other charities to see if they're open to car donations.
The Car Donation Process Explained
Most charities try to make the car donation process very straightforward. Here's how to get a donated car in Florida to your preferred nonprofit organization.
1. Notify the Charity
To initiate a donation, inform the charity that you want to give them your vehicle. They may request basic information about you and the car, including your name, your location, and the vehicle's make, model, and general condition. Some charities provide an online vehicle donation form you can complete.
2. Advise Where to Pick Up the Vehicle
Many charities will send a towing company to pick up your vehicle. In most cases, towing is free of charge, and the charity will schedule a pick-up time that fits your schedule. Once you schedule the towing, make sure to place the vehicle in an area where the tow truck can easily reach it, such as in your driveway or on the street.
3. Meet the Tow Truck Driver
Once the tow truck arrives, you'll hand over the vehicle and its keys. The tow driver may also check your driver's license and request the vehicle's title, which they'll provide to the charity. You can only donate a car you own outright or that has a lien release from a creditor.
4. Wait for a Donation Receipt
The nonprofit organization should give you an initial donation receipt when you turn over the vehicle. If the charity sells the car at auction, it will send you a tax receipt afterward, either by email or in the mail. You can use the tax receipt to claim a deduction on your federal income tax return.
Vehicle Title Transfer Essentials
When you donate your car, you must transfer the title and complete Florida's Notice of Sale form. To transfer the title, you must own the vehicle outright. It can't be under a lien with a lien holder. You'll sign and print your name as the seller on the title, allowing the charity to facilitate the sale of the vehicle at auction.
The Notice of Sale form should contain information about the vehicle, including its Certificate of Title number, make and model, vehicle identification number (VIN), and mileage. You'll provide the Notice of Sale to the nonprofit organization during donation.
Tax Benefits of Donating Your Car
One advantage of donating a vehicle is a tax deduction. The charity should provide you with IRS Form 1098-C, which notes the sale price it receives for the car at auction. Your deduction is typically limited to the sales price.
For instance, say you donate a vehicle with a fair market value of $3,000, and the charity sells the car at auction for $2,500. You could claim a $2,500 deduction on your federal income tax return.
However, you may be able to claim a charitable contribution deduction for the vehicle's fair market value in certain situations, including:
- If the charity plans to use the vehicle for its operations
- If the charity makes a material improvement to the car before its sale
- If the charity sells or donates the vehicle to a needy individual at a price much lower than its fair value
New Car? Don't Forget to Get Insurance!
Donating a vehicle is a nice way to give back to your community. However, once it's gone, you may need to purchase a new car for your transportation needs. When you do, you'll need Florida car insurance that meets state requirements.
EverQuote helps consumers find affordable Florida car insurance policies. Through our free service, you can get multiple quotes from providers and find auto insurance in Florida that suits your needs. To get started, complete the online EverQuote form today!