tips for getting rid of 10-yr old Tercel with engine problem

While waiting for my new Prius, my 10-yr old Toyota Tercel, which had been working fine up until that point, decided to die on me. It was up for an oil change, but for some reason it was out of oil before I got the chance to Jiffy Lube. The result, an engine transplant is needed. I took it to a garage, who said they could get me a used engine for $850 and $1500 labor. That is more than my car is worth, so I decided to drive my car to work (it still works, although the clunking sounds very ominous), and leave it in the parking lot until I've decided what to do with it. The damage is one or more pistons that are hitting the engine wall, and so driving it, it could seize up any minute.

I was planning to sell the car for about $1500, but of course that's out of the question now. Does anybody have any useful tips? If I donate it to charity will they take it, or do they only take cars that work without problems? If I can still donate, how do I determine how much the car is still worth? Or should I see if there is some school or community college who could use it. I'm in the Portland, OR area if that is any help.

In the meantime, I'm still waiting for my new Prius (I've already passed the 4 month mark, and have been without a car for over a month now).

Esther