Several state organizations in Maryland are happy to tow your car and issue a tax-deductible receipt for donation. If you’re looking to support a broader cause, you can also donate your car to a national charity.

If you’ve got an old car sitting around, it can be tough to decide what to do with it. You may have considered a trade-in or private sale, or even just scrapping the vehicle for some quick cash. But donating a vehicle to a nonprofit is a great way to put it to good use by helping your favorite charity (and getting a tax deduction)—and you’ll get rid of the

car insurance

payment for your old ride, too.

Even if you think no one could possibly make use of your old vehicle, a charitable organization can still scrap or sell it and use the profits to fund their cause. To help you decide where to donate, we’ve created this guide to Maryland car donation. We’ll tell you how the process works and what you need to do to ensure your donation is tax-deductible, and we’ll give you some ideas for where to donate.

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How to donate a car in Maryland

If you’re worried that donating your old car may be a hassle, you can relax. Participating charities and nonprofit organizations have streamlined the process with online donation forms and easy-to-understand phone menus. They’ll handle all the paperwork and tax documentation and most will even come and pick up the car for free—sometimes even on the same business day.

That said, there are a few things you’ll need to do to start the process:

Find an organization: Using a database like

Guidestar

is a great way to find reputable charitable organizations that accept vehicle donations. However, if you really want to be sure your donation is tax-deductible, use the IRS’s

online search tool

to check Pub. 78 data on your organization to ensure they can accept tax-deductible donations.

Gather your documents: You’ll need your car’s Vehicle Identification Number (VIN), make and model, and odometer reading. If you still have your

vehicle title

, that’s helpful, too.

Determine your vehicle’s market value: To get an idea of the kind of tax credit you may get, check out your car’s fair market value on

Kelley Blue Book

Schedule a pickup time for your vehicle: Most organizations offer free pickup. All you have to do is set a date and time.

When the organization accepting your donation picks up your vehicle, they’ll provide you with a donation receipt. Hang onto this receipt and bring it with you when you return your vehicle’s license plates to the MVA to avoid uninsured motorist fees.

You’ll also need this receipt when you claim your tax deduction. Once the organization either sells or scraps your car, they’ll send you a notice indicating when it was sold and the sales price. You’ll need to pair this notice with your donation receipt to claim your tax deduction.

Keep in mind that vehicle donation isn’t limited to just old cars—many charities accept other types of vehicles, too, like jet skis, ATVs, trailers, campers, fifth wheels, motorhomes, trucks, motorcycles, and more.

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.

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What to consider before donating a car

How do taxes work when donating a car?

When you take advantage of the tax deduction associated with most motor vehicle donations, it’s important you know how much you can claim.

If the organization you donate your car to sells it, the amount of your tax deduction will depend on your car’s final sales price.

If your car sells for more than $500, you should claim the sale price on your taxes, even if it's less than your car’s fair market value.

If your car sells for less than $500, you should claim either the sale price or $500, whichever is less.

If you donate to an organization that keeps your car, you should claim the vehicle’s fair market value as your tax deduction.

Be sure to double-check that the organization you’ve chosen to donate to can accept tax-deductible donations if getting a deduction is your aim in donating your car. Giving away a car doesn't automatically entitle you to a tax deduction.

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Where to donate a car in Maryland

If you can’t decide on a charity to donate your car to, we’ve got a list of some popular organizations that accept vehicle donations in Maryland for you here.

Kars4Kids

When you donate your car to

Kars4Kids

, they’ll use the proceeds from its sale to fund mentoring, summer camps, and after-school programs for children throughout the nation. Okay, you can stop singing their jingle now.

Vehicles for Veterans

sells donated cars to raise funds to support programs for disabled veterans and other veterans’ causes, including employment, medical care, housing, and more. Free, fast vehicle pickup, is available throughout Maryland, including

Baltimore

, Silver Springs, Annapolis, and even Washington, D.C.

Habitat for Humanity

The online

car donation wizard

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

Habitat for Humanity

, an organization that builds homes for those in need.

Goodwill Car Donation

Who among us hasn’t donated something to Goodwill at some point? Now you can donate your car, and the proceeds from

Goodwill Car Donations

will go toward funding for job training for disadvantaged Maryland citizens.

The Humane Society of the United States

We bet you didn’t know your old car could help you support animal rights. By donating your car to the

Humane Society

’s car donation program, you’ll help support their mission to end animal cruelty. Call 833-227-7610 to begin the donation process.

The Prostate Cancer Awareness Project

Cars for Prostate Cancer

sells donated vehicles and uses the funds to benefit the Prostate Cancer Awareness Project—a national charity dedicated to increasing prostate cancer awareness and survival. They make it easy by handling everything at the DMV for you. All you have to do is schedule a pick-up.

Wheels for Wishes

Cars donated to

Wheels For Wishes

are sold to raise funds for critically ill children through the Make-A-Wish® Foundation. Wheels For Wishes accepts almost any vehicle, and they provide free towing.

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