Donating a Vehicle to Charity in Maryland
If you are donating a vehicle, the owner and the charity need to do the following:
Owner:
- The title of the vehicle must be properly assigned to the charity. This is handled in the same manner as if you were actually selling the vehicle. Be sure to fill in the name and the address of the charity under the “Assignment of Ownership” section to properly complete transfer of ownership of the vehicle to the charity. Some charities may request that you leave the new owner information blank, but this leaves you at risk for future problems since the title would then be considered “open” by the MVA and unassigned. It may also affect your tax deduction for the donation.
- The odometer mileage must be filled in on the “Maryland Certificate of Title."
- If the giver has financed the vehicle, the charity will need the vehicle’s “Maryland Notice of Security Interest Filing” showing the vehicle has been paid off. If that document is not available, please request a letter on the financial institution’s letterhead stating that they hold no security interest and have it signed by the financial institution’s authorized agent. The letter should also include the date of the loan’s creation, the amount, the date of its release, the name and address of the debtor, and a full vehicle description (year, make, and vehicle identification number).
- Do not leave the license plates on the vehicle. After the title is transferred, remove the license plates from the vehicle and return the plates to the MVA unless you are transferring the plates to another vehicle. You may only transfer the plates if the new vehicle is titled in the same name and the new vehicle classification is the same as the old vehicle. Keep your receipt from the MVA when you return your plates. Keep insurance coverage on the vehicle until the date the plates are returned to the MVA or transferred to the new vehicle.
- Cancel the vehicle insurance for the donated vehicle. To avoid penalty fees, cancel the vehicle insurance only after the plates have been returned to the MVA or transferred to another vehicle.
Charity:
The charity is responsible for providing the owner with a receipt for tax purposes for the donation of the vehicle. The charity, the owner, or both may determine the price or value of the vehicle.
List of Maryland charities that acccept car donations
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