Donating your used car, motorcycle, SUV, truck or bus to a charitable organization in the Coal State is an awesome way to give back. Even if your donated Pennsylvania vehicle isn’t in the best condition, charities will get it inspected and sell your used car at an auction.This is a common way to turn the auto donation into a monetary one. Sometimes they can be sold just for parts too.
Use eTags© to Quickly Complete Your DMV Service. Renewals, Title Transfers and More, All Online!
Use eTags© to Quickly Complete Your DMV Service. Renewals, Title Transfers and More, All Online!
Car donations require title transfers
Many nonprofits, organizations, and churches are in need of vehicles for volunteers and employees to use while working and running day-to-day operations. Some organizations take in donated vehicles in order to gift them to veterans who can’t afford a new car, like “Vehicles for Veterans.” The organization picks up vehicles for free and you can be sure that your car, SUV or pickup truck, will help veterans in the U.S. In fact, most charities will arrange for the pick up for the vehicle. And if you do it right, it’s a tax write-off for you too. You did a good deed and everyone wins!
For The American Cancer Society, car donations allow the nonprofit to give cancer patients free rides to treatment, provide support calls, and arrange for free lodging for those who must travel for medical care
Relinquishing ownership in Pennsylvania
One of the important things to remember when you want to gift your Pennsylvania vehicle to a worthy cause, is relinquishing ownership aka title transfer. It’s arguably more important in this scenario than when you just simply sell a car or truck to a private buyer! You can’t know for sure what the plan is for your vehicle once you donate it, so transferring your Pennsylvania vehicle title is essential. You don’t want to be responsible if your donated car gets into a fender bender, or collects a few parking tickets. When you transfer the certificate of title, it releases the liability since a vehicle title serves as the proof of ownership.
It’s a best practice to keep a copy of your Pennsylvania title after it’s been signed and notarized
Treat the gifted vehicle the same as you would with a private sale. You, the donor, complete Section A located on the back of the title. Include the name and address of the charity as well as the current odometer reading and the purchase price.
No Pennsylvania sales tax on gifted vehicles
Now, speaking of the purchase price, in this section you’ll want to enter “gift” as your purchase price. In Pennsylvania, a 6% sales tax is implemented in vehicle sales. Gifted or donated vehicles are exempt from this sales tax. So there’s no financial responsibility for the charity. It’s a true donation!
Once you completed filling out all the various details such as the name of charity, you must sign the title before a notary. Pro tip: Never sign your name to blank information. After the title is notarized, you’ve done your part. As you know, a Pennsylvania title transfer is a two-part process! The charity has some work to do to complete the transfer. Continue reading for some information on how the job gets finished.
The MV-4ST,“Vehicle Sales and Use Tax Return/Application for Registration” can only be issued by a PennDot authorized agent
After you turn over the vehicle over to the charity, an administrator of the organization must complete their portion of the Pennsylvania title and finish the transfer at DMV or online with a titling company like eTags. We’ll get into those options later.
Signing the PA title incorrectly can cause problems
The authorized person for the charity needs to also sign before a notary, in Section D on the front of the title. Please advise the donee (organization receiving the gift) to read the sections on the front carefully before signing.
Oftentimes people sign in the wrong spot or check off the wrong box. In Pennsylvania, this “voids” or invalidates the title. The only person who can replace it at that point is the current titled owner. You! There’s a $58 fee associated with replacing a lost, stolen or defaced title. Since there’s so much room for error on a Pennsylvania title, this is a common occurrence. You’ll likely be asked to submit the “defaced” title to DMV in order to receive a clean one.
PennDot can take up to 8 weeks to send a replacement title in the mail
Title transfer fees with the DMV
Since we’re talking about fees, it’s good to know, your charity of choice will incur a $58 title transfer fee when they complete the title work. There are a couple of options when it comes to that part. The authorized person for the charity can visit a local DMV office. They should bring all pertinent paperwork related to the charity and of course the title! The agent at the PA DMV (pennDot) will assist with completing the MV-4ST or “Vehicle Sales and USE Tax Return/Application for Registration.” It’s best to go online and check on guidelines set forth by the DMV if going in person is the preferred method.
SEE ALSO: 6 WAYS TO SPEED UP YOUR TRIP AT THE DMV
You can transfer the title online
If the car or truck is originally titled in Pennsylvania, the other option is to use an online company like eTags. The folks at eTags are experienced experts in vehicle title transfers in Pennsylvania. While you’ll pay an extra fee, you’ll enjoy perks like dedicated customer service, knowledgeable licensed title agents who will walk you through the process step by step, and even multiple payment options.
eTags provides a really easy to use website where you enter all of your information, by answering one question at a time. It can be a bit nerve wracking to just turn your vehicle and title over to anyone. It helps to have the peace of mind that a company like eTags can help you complete the transfer and keep everything above board!
Vehicle Donation is great for everyone
Donating your car is a win all around. Not only is it convenient (hey, you may even get it picked up from your driveway!), but it’s a smart way to get a deduction on your taxes. Of course, donating your car is safe, but do plenty of research on the charity you’re thinking of giving to and make sure they are legitimate and have a good reputation. When you’ve made the decision to donate, the hope is you now have all of the information about how to complete the donation transfer with the state of Pennsylvania.
Happy giving!
