Donating a car is a way to support a charitable organization and benefit from a tax deduction. All donors should be aware that tax deductions for used automobiles, boats, or airplanes are available only to those individuals who donate to a qualified charity and itemize deductions on their tax returns.
Make Sure That You Are Donating To an Eligible Organization
Tax deductions available for donations made to organizations that the Internal Revenue Service has determined to be tax-exempt under §501(c)(3) of the Internal Revenue Code. To verify an organization’s qualified status, you can:
- Search for the organization on the IRS website to determine whether it is on the “Publication 78 Data List” of organizations eligible to receive tax-deductible charitable contributions here; or
- contact the IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500.
Churches, synagogues, temples, mosques, and governments do not require to register with the Non-Profit Organizations/Public Charities Division or apply to the IRS for tax-exempt determination. They may not list in Publication 78, but donations to these institutions are tax deductible.
Help Veterans Who Need It
Veterans help us to feel safe in our communities and homes, so why wouldn’t we give back to them during a difficult time? Vehicles For Veterans supports funding programs that fulfill a wide range of basic needs for veterans.
Many veterans who fight for our country return home with disabilities or face other challenges at home. You can help veterans throughout the U.S. just by donating your car to Vehicles For Veterans in Boston.
Ask The Charity Plenty Of Questions
Ask what the charity will do with your car
Some charities refurbish cars and give them to people in need. Some technical schools use cars in their auto shop programs. Other organizations resell the car or sell its parts and use the proceeds for their charitable purposes.
Ask if the charity handles all aspects of your donation
Many charities contract with for-profit companies to handle all the details of motor vehicle donations. If this is the case, ask how the money from your car donation is split between your charity and the for-profit company.
What paperwork do I need to donate my car in Massachusetts?
- The Commonwealth of Massachusetts will require a Certificate of Title in order to donate your car.
- To complete your car donation, transfer your title by entering the name of the agency that processes our car donations, ADVANCED REMARKETING SERVICES in the buyer/purchaser field. Then, PRINT and SIGN your name in the seller/owner field EXACTLY as it appears at the top of the title.
Maintain A Personal Record Of Your Donation
Items that should include in your record include:
- The written contemporaneous acknowledgment from the charity;
- The name and address of the organization to which you contributed;
- The date and place where your vehicle picked up;
- A reasonably detailed description of the donated car or a photograph of the vehicle;
- The fair market value of the vehicle at the time of the contribution and how that value was calculated;
- A signed copy of the appraisal, if the motor vehicle appraised;
- Any terms or conditions attached to the car donation;
- How you obtained the car (by purchase, gift, inheritance, etc.) and the date; and
- A copy of your title, registration, and any receipts you are given by the tow company or the charity.