There are many ways to get rid of a car, such as a trade-in or private sale, but these methods may not always be easy or efficient. On the other hand, you may be wary of donating your vehicle because you’re just not sure about an organization's intentions.

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, the

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super app, is here to explain how you can donate your vehicle with confidence. We’ll go over how to avoid scammers, how taxes work, which organizations you can donate to, and how to reduce your

Massachusetts car insurance costs

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How to donate a car in Massachusetts

Donating your car is often the quickest and easiest way to get it off your hands. Here’s what you should expect to address in the process:

Select an organization to receive your donation. Choose a cause that aligns with your values. Be wary of fraudulent organizations and ensure the establishment you’re donating to is legitimate.

Check whether the organization of your choosing is eligible to receive tax-deductible donations using the

EO Select Check

tool on the IRS’s website or call(877) 829-5500.

Gather all your documents—and make sure you have the title to your vehicle to be transferred. Enter the odometer mileage and sign and date the back of the form. Many charities also require an official written appraisal within 60 days before the donation.

Determine the fair market value (FMV) of your car by entering your vehicle’s make, model, and year on

Kelley Blue Book

Arrange a pickup. Either call or fill out the organization’s donation form to schedule a vehicle collection time.

Save your receipt to claim as a tax deduction.

How do taxes work when donating a car?

A tax deduction is a significant advantage to donating your car. Many donated vehicles are sold at auction for charity fundraising, so the amount you claim on your tax deduction is based on what your car sold for after you donated it.

If your vehicle is sold for more than $500, you can claim the sale price on your deduction. So if your car’s fair market value was $3,000 but it sold for $950, you would claim the $950 on your tax return—also known as a gross proceeds deduction.

If the organization sells the vehicle for less than $500, you may claim the vehicle’s fair market value up to $500. This means that even if your car sells for $350, the IRS will allow you to claim the larger (standard) deduction.

If your vehicle is used by the organization, you can claim fair market value. Depending on how much the vehicle is improved and the value, you will need to complete additional forms and a possible third-party appraisal to get your full deduction.

Depending on your tax bracket, you could obtain a further 5.3% deduction against your Massachusetts state tax liability!

And remember, these regulations only apply to institutions that qualify donations as tax-deductible—otherwise, you’ll be out of luck when it comes time to file.

Key Takeaway It’s important to vet an organization’s tax status before donating your car to avoid being scammed.

MORE:

What to consider before donating your car

Where to donate a car in Massachusetts

There are several places you can donate your car in Massachusetts. Here are some popular options.

Prostate Cancer Awareness Project

The Prostate Cancer Awareness Project

repairs donated vehicles for resale. Proceeds from the car sales are then spent on prostate cancer awareness programs. They are 100% tax-deductible, can tow your car for free (and often on the same day), and will even handle all of the DMV paperwork.

Wheels for Wishes

is a national charity benefiting the Make-A-Wish® Foundation. Make-A-Wish Massachusetts/Rhode Island uses the funds from the sale of your donated car to grant wishes to children with serious medical conditions. There are many locations throughout the region, including

Boston

Worcester

, and

Springfield

Goodwill

By donating your vehicle to

Goodwill Car Donations

, you are directly supporting your local community. The proceeds from your donation are used to give Bay Staters work and job training opportunities. Use the

online donation form

or call (855) 828-0119 to schedule a pickup and cancel the car’s insurance and registration.

Vehicles for Veterans

support disabled veterans across the United States. Your donation helps provide advocacy and support to US veterans who may be homeless, in transition, or in need of employment assistance. If you have any questions, you may contact a staff member through either the

online donation form

or by calling 1-877-646-3295.

Cars2Charities

is a service company that helps charities process their vehicle donations. They can maximize your tax deduction, take care of all of the paperwork and logistics involved in donating a car, and will donate the proceeds to your chosen

cause

. Donors are also eligible to receive a

vacation voucher

MORE:

Car loan in Massachusetts 2022

How to find affordable car insurance quotes in Massachusetts

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