If you don’t want to deal with the hassle of selling your car, then donating it to your preferred charity is a great way to do some good in the world—and earn a tax deduction while you’re at it! We’ve gathered a list of organizations in Rhode Island that accept car donations.
When it’s time to get rid of your old car, trying to sell it is probably the first thing that comes to mind. But selling a vehicle isn’t always easy. It can take a while to find a buyer, and the negotiation process can be long and stressful.
You could always trade in your car at a dealership, but depending on the condition of your vehicle, it may not be worth the time and effort. So what’s the easiest way to quickly get rid of an unwanted vehicle?
Donating your car to charity is a convenient and rewarding option. Car insurance
expert and top-rated broker app Jerry
has all the information you need to donate a car in Rhode Island, including how to avoid scams, how donating will affect your taxes, where you can offload your vehicle, and how to reduce your Rhode Island car insurance costs
. How to donate a car in Rhode Island
One of the perks of car donation is how convenient and quick it is. Here’s what you’ll need to do:
Find the organization you want to donate to. Car donation has become a huge industry, and scammers often try to take advantage of that. Take the time to look for a reputable organization with a mission you care about.
Gather any documents or information requested by the organization. Most charities will ask for a signed title, and they may also ask you for information such as the car’s make and model
, vehicle identification number (VIN), and/or current mileage. Check your car’s fair market value. Kelley Blue Book
is a great resource for determining your car’s current value. Schedule a pick-up. Contact your chosen organization to arrange for your car to be picked up. Depending on the organization, you may need to call them or fill out an online donation form.
Keep your receipt. You’ll need it to claim your tax deduction. If you donate to an organization that plans on selling your car, make sure to get the sale price so you know how much you’re eligible to claim.
How do taxes work when donating a car?
As mentioned, one advantage of donating a car in Rhode Island is that you can get a tax deduction by doing so. In most cases, the organization you donate to will sell the vehicle and use the money to help fund their charity. In these scenarios, your tax deduction will be based on how much the car sells for.
If your car sells for over $500, you’re required to claim the sale price on your taxes, regardless of the car’s market value. If the market value of your car was $2,500, for example, but it was sold for $900—you can only claim $900 on your taxes.
If your car sells for under $500, you’re required to claim either the car’s market value or $500—whichever is less. If the organization keeps your car, you can claim its market value.
Remember, these rules only apply to organizations eligible to receive tax-deductible donations. If you decide to donate your car to a trade school or another organization, then you won’t be able to claim a deduction on your taxes.
Key Takeaway Avoid scams by researching your preferred organization’s tax records before you donate.
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Where to donate a car in Rhode Island
Ready to donate your car in Rhode Island but not sure which organization to choose? Here are some great places to donate your car in the Ocean State:
Wheels for Wishes
Wheels for Wishes
operates nationwide and uses the funds from car donation sales to help critically ill children through the Make-A-Wish Foundation. The Rhode Island chapter
accepts vehicle donations from anywhere in the state and offers free pick-up and towing within 24 hours or the next business day.Rhode Island Public Radio
Enjoy listening to public radio
? You can donate your car to help fund the Rhode Island public radio station of your choice. Call 1-877-215-0227 or fill out an online donation form
to schedule a pick-up. Goodwill
Goodwill doesn’t just deal with the pile of clothes you haven’t worn in years—they’ll find a use for your old car, too. Proceeds from Goodwill car donations
go toward funding programs that benefit disadvantaged Rhode Island communities. Rhode Island Community Food Bank
If you donate to the RI Food Bank
, the proceeds from the sale of your vehicle will be used to provide healthy food for hungry families. Vehicles for Veterans
If you’re looking to support the troops, Vehicles for Veterans
is a nationwide organization that helps fund programs that support veterans in need. To make a donation in Rhode Island
, call 1-877-646-1976 to schedule a pick-up. Habitat for Humanity
Habitat for Humanity of Greater Providence
will use the funds from the sale of your donated car to support their work building homes for those in need. Fill out their online donation form
or call 1-877-277-4344 to donate to the Cars for Homes program.How to find affordable car insurance in Rhode Island
You know by now that donating your old car can help you save money on your taxes. But did you know you can save money on car insurance for your new or existing vehicle, too?
Don’t sign up for the first policy you find! Download the Jerry
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