Maryland has several state organizations that are happy to tow your car for free and issue a tax-deductible receipt for the donation. Depending on the cause you want to support, you could also choose a national charity.

If you have an old car sitting around, you might not know what to do with it. It can be hard to find someone to

sell your car

to, and you might not get much in terms of trading it in. Donating your old car can be a great way to get rid of it while helping your favorite charity.

Even if you don’t think anyone could possibly want your old car, the parts could still be scrapped or sold. You can also get rid of jet skis, trailers, campers, fifth wheels, trucks, motorcycles, and more. That’s one way to save on

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How to donate a car in Maryland

If you think donating your old car might be more trouble than it's worth, here’s another thing to consider: convenience. It’s true! Participating charities have streamlined the process to do all the paperwork, towing, and tax documentation for you. All you have to do is:

Find an organization: One way to find a reputable charity is by plugging the name and details of any organization into

Guidestar

, a database with reputation ratings for all the bonafide non-profits in the country.

Gather your documents: Write down your car’s Vehicle Identification Number (VIN),

make and model

, and odometer reading to make things go a little more smoothly. If you can find a signed title, that’s great, too.

Find the market value of your vehicle: If you’d like to have an idea of the tax credit you could claim, the

Kelley Blue Book

offers market prices for just about every vehicle.

Schedule a pickup time for your vehicle: Set a time and date for pick up using the online donation form or phone number of your chosen charity.

Keep the donation receipt: The organization that processes your vehicle will issue a notice when it’s sold and for how much. Pair this with your donation receipt, and you have everything you need to make your claim.

How do taxes work when donating a car?

The value of a car donation can be counted as a tax deduction. How is the value determined? Well, that depends on a few things:

If your car sells for more than $500, you can claim its sale price. Note that this isn’t its market value: a

Ford F-150

might be worth $1,500, but if it only sells for $900, you can only claim $900. Some charities sell cars at a heavy discount to families in need, and others fix up their donations to push their value (and the amount you can claim). Check an organization’s mission statement to get an idea of what it might do.

If your car sells for less than $500, you can claim the lesser amount: $500 or the market value.

If the organization maintains possession of the vehicle, you can claim its market value.

Remember, only registered non-profits can let you claim your donation as a tax deduction! It’s easy to see whether a group is registered or not by using the IRS’

online search tool

Tax credits aren’t everything, of course. Consider donating your car to a mechanic trade school in your area, and you could help the next generation of grease monkeys practice their craft.

Key Takeaway Legitimate charities will be registered on
Guidestar
, and tax-deductible ones will be registered with the
IRS
. The value of your donation will help determine what you can claim.

MORE:

What to consider before donating your car

Where to donate a car in Maryland

If you’re stumped on which charity you’d like to receive your car, Jerry has created a list of verified suggestions to get the ball rolling.

Kars4Kids

supports educational, developmental, and recreational programs for Jewish youths and their families. Check out their website, and in just 24 hours, you could wave goodbye to that old car, truck, trailer,

boat

, or RV.

Vehicles for Veterans

Donating to supportive and assistive groups around the country, the

Vehicles for Veterans

program handles all the necessary towing and paperwork for car donations.

Habitat for Humanity

The online

car donation wizard

and phone number (877-277-4344) of the Cars for Homes program make it easy to donate. Fully 78% to 86% of the car’s value will go towards supporting

Habitat for Humanity

, an organization that builds shelters for those in need.

Goodwill

You might not have seen them on the shelves at your local thrift store, but Goodwill actually accepts cars, too!

Goodwill Car Donations

gives disadvantaged members of the community valuable job experience and job placement services.

The Humane Society of the United States

If you’re passionate about animal rights, you might be interested to know that you can support the

Humane Society’s

mission to end animal cruelty with a car donation. Call 833-227-7610 to ask for a free tow.

The Prostate Cancer Awareness Project (PCAP)

Prostate cancer cases can be deadly but are vastly easier to treat if detected early. PCAP raises awareness through the media and bicycling events. And if that wasn’t enough, they also handle everything about

car donations

, from paperwork to pickup, for free.

Wheels for Wishes

Even if your car isn’t running, the

Maryland chapter

Wheels for Wishes

will pick it up, handle the title transfer, and deliver a tax-deductible receipt for free. The proceeds from car, truck, trailer, RV, and watercraft sales go directly toward the

Make-a-Wish Foundation

. Wishes benefit critically ill children by empowering their dreams and special projects.

MORE:

Car loan in Maryland

How to find affordable car insurance quotes in Maryland

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