Avoid Problems When Donating a Car

What could be worse than bestowing a blessing on someone and having it return as a curse? It can happen if you’re not careful.

Here’s the scenario. You decide to donate your car to charity. You complete the “seller’s” part of the title or registration papers — odometer reading, seller’s name, and date of sale. However, you leave it with the charity to complete the portion having to do with the “buyer.” The benefactor drives away with your car. You feel good. You’ve given to a worthwhile cause.

Unfortunately, two weeks later, you get a call from a wrecker service. They say you owe $400 for towing and storage fees — and you need to come get “your” car. It was found abandoned. “But I gave it to charity!” you plead. They reply, “That’s nice, but the car is registered in your name. You owe us for towing and storage.”

The point here is certainly not to sow seeds of distrust for charitable causes or a fear of being benevolent. This situation probably doesn’t happen very often. It’s simply a caution — the best of intentions can be rewarded with ungratifying results when you overlook rules designed to safeguard you against such problems.

Robi Turner, office manager for the Coweta County Tag Department in Georgia, recommends a few simple steps to take when you donate a car to charity.

How to Do it Right

Document the transfer. “Make copies of the title once it’s assigned to the new owner,” Turner says. Until the “buyer” registers the car in his name, the vehicle is yours for all practical purposes — unless you have copies documenting the transfer of registration or title. Without those copies, you have no way of proving that you are no longer liable for traffic violations, parking tickets, collision damage, or other mishaps involving your old car.

Make sure information is complete. Those copies need to include the name, address, signature of the person or organization to which the vehicle is being given, and the date of the sale. That information will enable authorities to locate those liable for any mishaps your donated car may be involved in after the sale.

Check with your tag office. Details concerning the proper way to transfer auto ownership vary from state to state, Turner says. So inquire at your tag office about canceling your registration, removing or transferring license tags, and notifying your insurance company — before the transfer takes place.

Taking these steps will assure you that your generosity won’t be spoiled and your gift car won’t come back to haunt you.

 

Category: Charity