What you need to do to ensure your car donation runs smoothly :
Once you have picked out the charity that you wish to make your vehicle donation with, you will need to remove the license plates from the car that you are donating. Take the license plates to a local DMV for your vehicle registration to be cancelled. You will then be safe to cancel the insurance on the car. If you fail to do this from the start, you may have to pay unnecessary insurance payments, when the vehicle is no longer in your possession. The New York Department of Motor Vehicles can provide more details on this process at their website.
Most of the popular car donation charities in New York will pick up your car and tow it away for free. If you are asked for a substantial fee, then you may wish to reconsider the charity that you make your donation to. Also, if the charity is nearby, you may want to drop off the car yourself, which saves the charity money on towing fees.
To obtain your car donation tax deduction on your next tax return for your donation, you will need to return IRS tax form 1040. You only need to fill in section A of the form and return it with with your tax return, and this will enable you to deduct the amount that the charity received for your vehicle at auction from your tax bill.
