Did you know that you can donate your used car to charity? There are several different organizations you can contact, some nationwide and some specific to Maine, that will get rid of an unwanted vehicle for you and provide a tax write-off to boot.

Maybe you’ve got a new car. Maybe you’re tired of paying for

car insurance

. Or maybe you can’t get rid of an old vehicle that simply doesn’t work. Whatever the reason, donating a car is a convenient way to get it out of your driveway. Plus, you could earn a tax deduction while benefiting kids, veterans, prostate cancer research, and other great causes.

Jerry

has all the info you need on how and where to donate a car in Maine and how to reduce your

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How to donate a car in Maine

Not only is car donation generous, but it’s also convenient! The charities that accept cars aim to make the process straightforward. Here’s what you need to do:

Find an organization: This is likely the most time-consuming step, but it’s nothing an internet search can’t solve. Look for an organization whose reputation you can verify (

Guidestar

is a good tool for this) and that supports a cause you think is important. Scammers are known to target used vehicle donors.

Gather your documents: A signed title is best, but it will also speed things up if you can provide your Vehicle Identification Number (VIN), the car’s

make and model

, and its odometer reading.

Find the market value of your vehicle:

Kelley Blue Book

can help you find your car’s fair market value, so you know how much to expect for a tax deduction.

Schedule a pickup time for your vehicle: Place a phone call to the charity of your choice to set a date and time for them to pick up your vehicle.

Keep the donation receipt: You’ll need a record of the donation to claim your tax deduction later. Keep in touch with the organization so you can be informed of the price your vehicle fetched when sold (or scrapped). This affects how much you can claim.

How do taxes work when donating a car?

Tax deductions are a great way to save money while doing a good deed. The charities that accept used vehicles turn them into cash donations by selling or scrapping them, so your tax deduction will be based on the amount of money they receive.

If your car sells for more than $500, you may claim the sale price on your taxes. However, you can only claim the amount that the car actually sold for, not its market price. For example, if the Kelley Blue Book lists your old

Toyota Camry

for $1,600 but the charity you donated to only sold it for $1,200, you can only claim $1,200 on your taxes.

If your car sells for less than $500, you must claim the lesser amount of either the fair market value or $500. Why so little? Some charities mark down the car’s value for families in need.

If your car stays in the possession of the organization, you can claim its fair market value.

Note that you can only claim tax deductions from organizations that are tax-deductible. The IRS has an

online search tool

where you can verify the tax-deductible status of every charity group in the US. And even if they don’t issue a tax receipt, there are still lots of causes worthy of donations, like mechanic trade schools that need vehicles for student practice.

Key Takeaway Do your research on a charity’s reputation and its tax-deductible status so you can avoid scammers and come away with a usable tax receipt in hand.

MORE:

What to consider before donating your car

Where to donate a car in Maine

If you’d like to skip the work of verifying charities, Jerry has a couple of suggestions for you from around the Pine Tree State.

Kars4Kids

streamlines the donation process with an easy online evaluator, 24-hour pick up, and a service that accepts cars,

boats

, and RVs. All donations support educational, developmental, and recreational programs for Jewish youth and their families within the community.

Vehicles for Veterans

If you’d like to make a difference in the lives of disabled veterans, the

Vehicles for Veterans

program distributes dollars to supportive and assistive groups across the nation. Pickup is easy, free, and paperwork-free.

Habitat for Humanity

Between 78% and 86% of all donated car revenue goes directly to

Habitat for Humanity

, which helps to shelter families in need. After using the online

car donation wizard

or calling (877) 277-4344, you’ll receive a letter detailing just how much your donation helped the Cars for Homes program.

Goodwill

T-shirts, books, weird little figurines from your grandmother’s china cabinet—now you can add used cars to the Goodwill donation pile!

Goodwill Car Donations

supports job training and placement services for disadvantaged members of the community.

The Humane Society of the United States

The nationwide

Humane Society’s

mission is to end animal cruelty by targeting animal mills and laboratory testing and caring for their victims. Support their purr-pose by calling 833-227-7610 for a free tow.

The Prostate Cancer Awareness Project

Cars for Prostate Cancer

fights prostate cancer by pushing for early detection and education on the signs, treatments, and research surrounding the disease. Their free service includes handling all the paperwork at the DMV, picking up the vehicle (sometimes on the same day), and providing donors with the paperwork they need to claim tax deductions.

Cars2Charities

Most charities make use of a car donation service to pick up and process donations, and

Cars2Charities

is one of the best. They repair donated vehicles to maximize the benefits of your donation (and your tax deduction) and put them towards causes like animal care, disaster relief, and education. Get in touch, and you could even receive a

vacation voucher

MORE:

Car loan in Maine

How to find affordable car insurance quotes in Maine

If you’re interested in saving money beyond tax deductions, check out

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