How to Donate My Old Car in Massachusetts

Donating a car to charity is a gesture that can help both you and the charity. You get rid of an old car that would otherwise sit in your driveway, and the charity receives a vehicle that it can re-purpose or resell to acquire funds. However, you must follow the guidelines set by your state if you wish to follow tax credit eligibility requirements. Massachusetts also has guidelines on handling title transfers and plates that you should be aware of before the truck comes for your clunker.

• 1

  Research the charity you've chosen. Find out if it is an eligible organization if you want to deduct the donation from your taxes. Eligible organizations are classified as §501(c)(3), public charities considered tax-exempt by the IRS under Publication 78. Religious bodies such as churches, synagogues and mosques do not need to file for tax-exempt status but are eligible organizations.

• 2

  Contact the charity and ask about your donation. The Attorney General of Massachusetts' office recommends finding out what the charity does with the vehicle. Some may fix the car while others may sell the car or its parts and use the cash. Also ask what they use the car or the money from it's sale for and if you can specify what your car's funds will go toward, such as a particular program or service. Avoid organizations that will not answer questions about their use of donated money.

• 3

  Find the title to the vehicle or obtain a duplicate title through the Registry of Motor Vehicles. Massachusetts requires a title transfer when the vehicle changes hands, even for donated cars. The only cars or other registered vehicles that do not require a title are trailers of less than 3,000 pounds or a car purchased before 1972.

• 4

  Find the value of your car. You can deduct only a certain amount from your taxes when you donate a car. This is outlined in IRS Publication 4304, and the amount can vary depending on what the charity does with your old vehicle. If you believe your car is worth more than $5,000, have the car professionally appraised and obtain a written copy as proof of your donation's value.

• 5

  Arrange to have the car picked up for the charity. Some organizations work with specific companies to handle the automobile pick-up, and you can ask the charity how much money from your car goes to this company and how much the charity gets. When the car is picked up, you will complete the title transfer to turn your car over to the charity. Massachusetts also requires you to remove your license plates.

• 6

  File away your paperwork for your tax deduction. You will need proof that you owned the car, a detailed description or photograph of it and proof from the charity that you donated it. Keep contact information for the charity and a record of when it was picked up, as well as a copy of the title and registration. If you had the car appraised, retain a copy of the appraisal. These will assist you during tax season to obtain your deduction.