The donor will need to get a replacement title, then sign off. This is the easiest way to do it. Your friend can offer to pay the title fee, it will be well worth it.

Sales tax will be based on the purchase price (Sec of State may want their 6 cents so it may have to say $1) so a bill of sale or gift would be helpful to establish the "value". The Sec of State does not like free cars, and without a document signed by the seller with the price included, they will use book value.

Or if it's too much hassle, he can regift it.