How to Donate a Car in Massachusetts

When you donate a car in Massachusetts, you can earn $500+ in tax deductions.
Written by Jacqulyn Graber
Reviewed by Amy Bobinger
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One of the best ways to offload your old car in
Massachusetts
is by donating it. Donating a car is not only a great way to support a charity, but it can also earn you a substantial tax write-off. 
There are many ways to get rid of a car, such as
selling it
or trading it in, 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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How to donate a car in Massachusetts

Donating your motor vehicle 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 your vehicle’s certificate of
    title 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. Most vehicle donation programs
    offer free pickup
    .
  • Save your tax-deductible receipt to claim when filing. 

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 car donation tax 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. 

Where to donate a car in Massachusetts

There are several places that accept car donations in Massachusetts. Here are some popular options.

Prostate Cancer Awareness Project

The Prostate Cancer Awareness Project
is a nonprofit that repairs multiple types of vehicles (including automobiles,
motorcycles
, ATVs, motorhomes, and more) 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

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 

Vehicles for Veterans
is a nonprofit organization that supports 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

Cars2Charities
is a car donation program that helps charities process their vehicle donations without the hassle. They can maximize your tax deduction, take care of all of the paperwork and logistics (including towing!) involved in donating a car, and will donate the proceeds to your chosen cause. Donors are also eligible to receive a vacation voucher. 
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