How to Donate a Car in Vermont

When you donate a car in Vermont, you can earn a tax deduction of $500.
Written by Melanie Johnson
Reviewed by Kathleen Flear
Donating an unwanted car is an excellent way to support a great cause and earn a tax deduction at the same time. There are many places to donate used vehicles in Vermont—keep reading to learn more. 
When you’ve decided your current vehicle just isn’t cutting it any longer, you usually have three options: (1) find a buyer and sell the car, (2) sell the car online, or (3) trade it in for another vehicle. 
But there’s a rewarding and convenient fourth option to consider: donating your car to a nonprofit. Donating a car has many advantages: the process is straightforward, you’ll help out a charity in need, and you’ll get a tax deduction! 
When considering car donation, you might not know where to start. That’s why
car insurance
comparison super app
has created a handy guide to donating your car in Vermont. We’ll cover what you need to donate your car, a list of our favorite charities to donate to, what your tax deduction will look like, and even how to reduce your
Vermont car insurance costs
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How to donate a car in Vermont

As we’ve said, the process of donating your car in Vermont is pretty straightforward and convenient. Here’s a step-by-step guide to donating your car:
  • First, find the right organization to donate to. If you want to claim a tax deduction, you’ll need to make sure the charity you donate to is a qualified organization. Per the IRS’
    Donor’s Guide
    , “the most common types of qualified organizations are section 501(c)(3) organizations, such as charitable, educational, or religious organizations.”
  • Use the IRS’s
    online search tool
    to check Pub. 78 data, which determines whether an organization qualifies for a tax deduction. Keep in mind that churches, synagogues, temples, and mosques are not required to apply to the IRS to be considered qualified organizations and are often not listed.
  • Collect necessary documents. Most organizations require a clear title but some exceptions apply. You may also need to provide your vehicle’s
    make and model
    , vehicle identification number (VIN), mileage, and operational status.
  • Check your car’s fair market value. Use
    Kelley Blue Book
    or a similar service to estimate the amount of your tax deduction.
  • Schedule a pickup. Call or apply online with your chosen organization to arrange for a free pickup.
  • Keep your donation receipt so that you can claim your tax deduction. If the organization goes on to sell your car, be sure to ask them for the sale price, so you can know what to claim on your taxes.

How do taxes work when donating a car?

Let’s talk about the tax deduction process of selling your car.
When you donate a car to a charity, most of the time the charity will sell your car to raise funds for the organization. That being said, your tax deduction will depend on the amount the charity sells the car for, not the value of your vehicle when you donated it.
For example, if your car sells for $700—even if it was valued at $2,000—you’ll only be able to claim $700 in charitable donations on your taxes. 
However, if your car sells for less than $500, you may claim either the fair market value or $500—whichever is less. Charities may sell cars at very low prices to families in need, so this rule allows you to claim a larger deduction. 
If the organization keeps your car and doesn’t sell it, you can claim the
actual cash value
of the car.
Bear in mind, these rules only apply to qualifying organizations. If the organization you donate your car to doesn’t meet IRS qualifications, you may not be able to claim a tax deduction.
Key Takeaway If you hope to receive a tax credit, it’s important to research your charity’s tax exemption status before donating your car.

Where to donate a car in Vermont

There are many options when it comes to donating your car in Vermont. Below are our top six picks. 

Wheels For Wishes

Wheels For Wishes
is a nationwide nonprofit. The proceeds from its car donation services benefit the Make-A-Wish foundation, which provides support to critically ill children. The
Vermont division
of Wheels For Wishes provides free pickup of vehicles in Burlington, Essex, and more. You can donate your car to Wheels For Wishes online or by calling 1-888-737-5808.

Cars For Prostate Cancer

The proceeds from
Cars For Prostate Cancer
go directly to, you guessed it, prostate cancer research. Their mission is to increase the prostate cancer survivor rate by increasing the rate of early detection. To donate to Cars For Prostate Cancer, fill out an
online form
or call 888-885-6710.


It’s not just for your old shirts, shoes, and belts!
Goodwill car donations
go toward providing Vermont residents with job opportunities. To donate your car to Goodwill, use their online
donation form
or contact them at (855) 828-0119.

Kars 4 Kids

Everyone’s heard that jingle.
is a nonprofit Jewish organization with a mission to provide children with the opportunities they need to become upstanding members of their communities. To donate your car to Kars4Kids, you can fill out an
online form
or call 1-877-527-7454.

Vehicles For Veterans

Vehicles For Veterans
provides support to disabled veterans with employment, medical care, disability, pension, housing programs, and more. You can donate your car to Vehicles for Veterans by calling 1-877-646-3295 or by filling out a
car donation form


is a commercial fundraiser that works with many certified 501(c)3 organizations registered with the IRS. A lot of charities aren’t able to process their own vehicle donations, so they hire a car donation company like Cars2Charities to do so. To donate to Cars2Charities, fill out a form on their website or call (855) 520-2100.

How to find affordable car insurance quotes in Vermont

Donating a car is an excellent way to support a charity in need. Reward yourself for your good deed with a new low car insurance rate! 
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