Car Donation In Louisiana, LA
What You Need To Know
A used car donation is one way to help out charities in Louisiana while ensuring that you get the opportunity to claim a large deduction on your taxes.
However, there’s more to car donation than just showing up and handing over the keys; you have to know the rules, first.
Below, therefore, we have provided all the information that you are likely to need if you are thinking about donating your car to charity. We have provided the relevant links to the Louisiana Office of Motor Vehicles where appropriate.
1. Where To Donate Cars In Louisiana?
With all of the charity car auctions and vehicle donation programs out there it can sometimes get hard to tell which ones allow a tax deduction and which ones don’t. In order to claim a deduction you should seek out an acceptable 501(c)(3) tax exempt charity and attend one of their sponsored auctions.
If you aren’t sure which charity to donate to, the Better Business Bureau has compiled a list as has www.charitynavigator.org. Once you know which charity you’re donating to, all you have to do is call and ask where donations may be taken in Louisiana.
Using these resources you should be able to find a long list of charitable organizations in Louisiana from all the main towns and cities:
- Baton Rouge
- Covington
- Eunice
- Lafayette
- Laplace
- Natchitoches
- New Orleans
- Shreveport
- Winnsboro
Making Donations In Other States
IRS Publication 4303, A Donor’s Guide To Vehicle Donations, sets out the tax rules for donating cars in the US. The IRS places no limits or restrictions on where you donate your car even if it is registered and titled in Louisiana.
Therefore, depending upon your location, it might be more convenient to find a charity located in a nearby state.
2. What Can You Donate in Louisiana?
Auto donation is a common type of charitable giving, but cars and trucks, both working and non, are just the tip of the iceberg.
For instance, in Louisiana, you can also donate boats, mopeds, motorcycles, trailers, snowmobiles and recreational vehicles. Vehicles don’t even have to be in working order, as many charities will accept junk car donations as well.
If you’re ever unsure about whether or not your donation is acceptable all you have to do is contact the charity you’re donating to and ask if your particular donation would be taken.
3. Documents Needed To Donate In La?
When you donate your car in Louisiana you have to have the proper paperwork; the title to the vehicle in question.
The only exceptions to this rule are snowmobiles and boats, neither of which require a title to donate in this state.
Obtaining Replacement Title Documents
If you need to get a replacement for your title, then you have to contact the Louisiana Office of Public Safety or get a duplicate Louisiana vehicle registration online on their website.
If you want to talk to a representative over the phone to get answers to your documentation and donation questions, then call one of the numbers on their contact page.
Additional Driver Information
You can also download Louisiana official driving records if you require them.
4. How To Release Liability in Louisiana?
When you make a vehicle donation in Louisiana you have to make sure that you’re released from liability.
Liability is the legal term that says you’re responsible for your vehicle, and thus for any damages or accidents that it gets involved in.
Transferring Liability In Louisiana
In order to transfer liability, and title ownership of the vehicle, you need to fill out the release section on the title with the information of the charity as the new owner.
To do this you need complete an official Notice of Vehicle Transfer (also available online), where you will need to provide the following information:
- License plate number
- Expiration date (as shown on vehicle’s registration)
- Vehicle identification number
- Driver’s license number or company EIN (as shown on vehicle’s registration)
- Name and address of buyer
- Date sold, donated, or traded
- Selling price of vehicle (if applicable)
Read more about transferring vehicle titles in Louisiana.
5. Maximizing Your Donation in Louisiana
Donating a car to charity is a great way to throw some real, financial weight behind a charitable institution in Louisiana. However, in order to ensure that the charity gets as much for your donation as possible, keep some things in mind.
First of all, if the charity tows your donation in, even if you aren’t charged for the tow, the charity still has to pick up the cost for that.
Non-Working Vehicles & Material Improvements
Additionally, if you’re making any material improvements to your vehicle (improvements that will increase the monetary value of the vehicle you’re donating) then you should definitely get those done before it’s donated to charity.
Your vehicle doesn’t have to function, but functioning vehicles, and those that have been cleaned and repaired, will often bring a higher price than non-functioning, junked vehicle donations.
Does Your Charity Work With A ‘For-Profit’ Agent?
Additionally, avoid donating to charities that work with ‘for-profit’ agencies.
Is Anyone Making a ‘Profit’ From Your Donation?
If a charity has partnered with, or uses a ‘for-profit’ agent, then the charity must split the gross proceeds with that agent once a sale is made, which means that the charity doesn’t get the full amount of the sale.
Many donors are completely unaware that this is actually standard practice especially as smaller charities do not have the resources to run their own car donation programs.
6. How To Maximize Your Tax Deduction?
A car donation tax deduction is something that you can claim when you donate your car to charity.
Under normal circumstances you will give your car to a charity, and then that charity will sell the car. After the car is sold, you are then allowed to claim as your deduction the gross proceeds of the sale.
Can You Claim The Fair Market Value?
However, the rules change if your charity intends on using your donation for a significant period of time in course of its own charitable activities, giving or selling your vehicle for a price below fair market value to a needy person in furtherance of its goals.
In these instances, you may claim the fair market value of your vehicle as the tax deduction, and you may claim it as soon as you’ve made the donation rather than waiting until the charity sells the vehicle off at auction.
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