How to Donate a Car in California: The Complete 2025 Guide
Donating a car is a wonderful way to make a positive impact in your community while potentially receiving some benefits yourself. For over 15 years, Car Donation Wizard has connected donors with respected charities that use your car donation to fund the important work they do to make a difference in their communities. We’ve raised over $250 million for nonprofit organizations and we are consistently ranked as the program with the highest return by the California Attorney General Report.
Car donations can provide a lot of benefits, including tax deductions, environmental sustainability, and helping to support causes you care about. Whether you’re looking to support a charitable cause or simply want to get rid of an old vehicle, this step-by-step guide will walk you through the process of donating a car in California.
Donating a car in California is one of the most rewarding ways to support a charitable cause while enjoying a potential tax deduction. Whether you have an unused vehicle, an old car that costs too much to repair, or simply want to make a difference, California’s car donation process is straightforward if you follow the right steps. This guide will walk you through everything you need to know—from choosing a charity to claiming your tax benefits.
🚗 Why Donate Your Car?
Many Californians choose to donate cars for different reasons:
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You no longer need the vehicle or want to avoid the hassle of selling it.
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You want to support a cause such as education, health care, veterans, or children’s welfare.
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You can earn a tax deduction while helping your community.
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The charity can use your car’s resale value to fund important programs.
In 2025, more than 250 registered organizations in California accept vehicle donations. These include both local nonprofits and national charities operating within the state.
🏛️ Step 1: Choose a Qualified 501(c)(3) Charity
To receive a tax deduction, the organization you choose must be IRS-approved as a 501(c)(3) nonprofit. You can verify a charity’s eligibility on the IRS Tax Exempt Organization Search Tool or the California Attorney General’s Registry of Charitable Trusts.
Popular California-based car donation programs include:
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Goodwill Car Donations – Supports job training and community programs.
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Habitat for Humanity Cars for Homes – Funds affordable housing projects.
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Make-A-Wish Foundation of Greater Los Angeles – Grants wishes for children with critical illnesses.
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Kars4Kids – Supports educational and youth development programs.
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American Cancer Society Cars for a Cure – Funds cancer research and patient support.
When choosing, ensure the organization handles the vehicle directly—not through a third-party reseller taking most of the profit.
🧾 Step 2: Understand the Charity’s Donation Process
Each charity has its own procedure for vehicle donations. Before committing, ask:
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Do you accept non-running or damaged vehicles?
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Is towing or pick-up service free?
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What happens to my vehicle (resold, recycled, or given to a family)?
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How soon will I receive my tax receipt?
Most reputable charities in California offer free towing anywhere in the state, from San Diego to Sacramento. They will arrange a convenient pick-up time, even if your car is parked in a garage or driveway.
📄 Step 3: Gather Required Documents
Proper documentation is essential for a smooth transfer and tax deduction.
You’ll need:
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Vehicle Title (Pink Slip) – You must sign over ownership to the charity.
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Smog Certificate – May be required if the charity intends to resell the vehicle.
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Vehicle Registration – To verify current ownership.
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Odometer Reading – Needed for IRS reporting.
If your car title is missing, request a duplicate from the California Department of Motor Vehicles (DMV) using Form REG 227 (“Application for Duplicate or Paperless Title”).
🧹 Step 4: Clean Out Your Vehicle
Before the pick-up or drop-off:
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Remove all personal belongings (documents, keys, electronics, etc.).
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Take off your license plates (if requested).
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Check storage compartments, glove box, and trunk.
The charity is not responsible for items left behind, and personal documents could lead to identity theft if not removed.
📝 Step 5: Transfer Ownership Correctly
Transferring the title legally protects you from liability.
On the title form, list:
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The charity’s name and address as the new owner.
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Your signature as the seller/donor.
Make a photocopy or take a photo of the signed title for your records.
Then, submit a Notice of Transfer and Release of Liability (NRL) to the California DMV within 5 days of donation. You can do this online at www.dmv.ca.gov.
This step is crucial—it ensures you’re no longer responsible for parking tickets, accidents, or toll charges linked to the vehicle after donation.
📞 Step 6: Arrange Pick-Up or Drop-Off
Once the charity verifies your documentation, they’ll schedule a pick-up. Most organizations can tow your car within 24–48 hours.
If your car runs, you can choose to drop it off at a local donation center to save the charity the towing expense.
You’ll receive a receipt at the time of pickup, confirming that the charity has taken possession of your vehicle.
🛡️ Step 7: Cancel Insurance and Registration
After the title transfer:
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Contact your insurance company to cancel the vehicle’s policy.
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Inform the DMV if you won’t be replacing the car soon.
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Keep proof of cancellation in your records.
These steps prevent you from paying unnecessary fees or being liable for the vehicle.
💰 Step 8: Get and Use Your Tax Receipt
The IRS requires documentation for vehicle donations. You’ll receive:
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A written acknowledgment or donation receipt if your car is worth less than $500.
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An IRS Form 1098-C if your car sells for more than $500, showing the exact sale price.
For deductions under $500, you can claim the fair market value (FMV) using pricing guides such as:
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Kelley Blue Book (KBB.com)
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Edmunds.com
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NADA Guides
If the charity sells your car for more than $500, your deduction equals the actual sale price, not the estimated value.
🧮 Step 9: Claiming the Tax Deduction
When filing your taxes:
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Itemize deductions using IRS Schedule A.
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Include Form 8283 if your deduction exceeds $500.
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Attach Form 1098-C if applicable.
Keep all donation paperwork for at least three years, in case of an IRS audit.
🕊️ Step 10: Confirm the Charity’s Use of Proceeds
Some donors like to follow up with the charity to learn how their car made an impact. Many nonprofits will share details such as:
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The amount raised from the vehicle’s sale.
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The specific project or program funded.
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Testimonials from beneficiaries.
This helps ensure transparency and reinforces your confidence in giving.
⚖️ California DMV and Tax Tips
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The DMV does not charge for transferring ownership for a donation, but ensure all forms are filled correctly.
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Always keep a copy of your title, receipt, and NRL confirmation.
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If you donate a vehicle valued over $5,000, you may need a qualified appraisal.
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Consult a tax professional if your deduction involves complex cases (e.g., business vehicles or classic cars).
✅ Key Benefits of Donating Your Car
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Free Towing: Most charities handle pickup and paperwork.
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Tax Savings: Reduce your taxable income.
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Environmental Impact: Recycling vehicles reduces waste.
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Community Support: Funds go directly to local or national programs.
🌟 Final Thoughts
Donating a car in California is a simple yet powerful way to make a difference. From Los Angeles to San Francisco, thousands of Californians contribute to community programs each year through car donations.
By following the proper DMV steps, ensuring your charity is legitimate, and keeping all documentation, your donation will be both meaningful and compliant with state and federal laws.
Start your car donation journey today—turn your old car into an opportunity that supports families, health programs, and education across California.
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