The ABCs of Car Donation – E is for Execute

Once you have determined what charity you want to donate your car to, you have to execute the transfer of your car and its title to the charity. With respect to the title, make sure you fill in the correct odometer reading and sign your title in the correct location. You are the seller, the charity is the buyer. Therefore, you have to sign it in the place marked "seller's signature" If your car is titled in the states of Arizona, Kentucky, Louisiana, Montana, North Carolina, Ohio, Oklahoma, Pennsylvania, or Wyoming, your signature on the title has to be notarized. Do not sign the title in the "re-assignment by licensed dealer section". If you are not sure where to sign it, find out from the charity or your local Department of Motor Vehicles.

You also need to make sure you sign your name the way it appears on the front of the title. For example, if the title is in a maiden name, the signature needs to be as well.  The exception to this occurs when the title is in the name of someone who is deceased. In this case, the title should be signed by the executer of the estate. In addition, you will need to provide a copy of the death certificate and a copy of the will or power of attorney.

If you make a mistake on the title, DO NOT scribble it out or use correction fluid. If you do, it will void your title and you will have to get a duplicate title before you can donate car. If you make a mistake, put one line through it and sign either above or underneath it. You can also use an affidavit of correction.

Next, fill in the name of the buyer. That name will either be the name of the charity you are donating your car to or the car donation center representing them. DO NOT leave the name of the buyer blank!

There are basically three ways to deal with the title. You can simply leave it in the car, you can hand it to the tow truck driver or you can mail it to the charity or the car donation center. DO NOT leave the title in the car! This may seem like the most convenient method, but it also has the most risk. If you leave the title in the car and the tow truck driver does not leave you a receipt, you will have no proof of your car donation. Leaving the title and the keys in the car is also an invitation for someone to steal your car!

Handing your title directly to the tow truck driver is safer, but still has some risk. Most charities do not pickup car donations themselves; they hire towing services to do that. Therefore, the tow truck driver will not be able to examine your title and other documents to make sure they are all in order. Also, most towing services pickup car donations for multiple charities. Therefore, you will need to make sure you get a receipt that is for the correct charity.

Another risk associated with giving the title to the tow truck driver is that they could lose it. This is a major inconvenience for you and the charity. It is for you, since you will probably have to get a duplicate title and the sale of your car will be delayed.  The average cost of getting a duplicate title is $20. It is an inconvenience for the charity because of the delay in the sale of your car. This means that they will not only have to wait for their money, but they may have to pay storage fees as well.

DO NOT hand over your title unless you have the name of the buyer completed.  If you do and the tow truck driver is unscrupulous, they could write their own name in as the buyer and can in effect legally steal your car. This is rare, but it can happen.  

Many people are hesitant to mail their title for fear of it being lost in the mail. Mailing it in a manner that provides you with a tracking number will minimize this risk. Mailing the title to the charity is actually safer for you and the charity. First, once the charity or car donation center receives your title they will be able to tell you if everything is in order before your car is picked up. If there is a problem, they will advise you on the proper way to fix it.

Now that all the title issues are handled, you just have to execute getting the car to the charity. First, make sure you remove all your possessions from the car, including the toll tag, garage door opener, etc. You should also vacuum out the car. This will help it to sell for a higher price, giving you a better tax deduction and the charity more money.

If the car is in your driveway, position it where the tow truck can easily get to it. Make sure all four tires are inflated. If one tire is flat, your driveway may be scratched when it is pulled onto the tow truck. If your car is licensed in any state except, Alaska, California, Delaware, Hawaii, Kentucky, Minnesota, Oklahoma, Oregon, South Dakota, Texas or Washington, you should remove the license plates. You will need to transfer them to another car or return them to the Department of Motor Vehicles so you can cancel your car insurance. If your car is licensed in New Jersey, New York or Pennsylvania, you should scrape the inspection and/or registration sticker off the windshield. This will prevent you from receiving any unpaid tickets issued to the next owner of your car.

If your car is parked on the street, you will need to wait for the tow truck to arrive before you remove the license plates and stickers. If you remove them prematurely, you may receive a ticket.

Car donation is a very charitable act that has many rewards for you and the charity. As always, the correct execution is the key to a successful outcome.