A vehicle you no longer need might prove a dead-weight that holds you back in various ways. You might even be deterred from getting rid of it by the complications in the car-sales process. But most people hardly know that it pays to donate cars in MA more than to sell them.
Also, you might get stuck in a dilemma when your vehicle breaks down to a point where the cost of the repairs and maintenance is greater than the value of the vehicle.
A vehicle that’s no longer in use still incurs cost such as the vehicle’s insurance as well as registration. A vehicle donation might just be the most convenient way to dispose of the vehicle.
By donating your car, not only do you take receipt of financial gains in form of tax deductions, you also enable a charity draw closer to accomplishing her goals.
Tips for Donating Cars In MA
- Ensure that you have your vehicle’s title in place: If you loose your vehicle’s title, you can stop by the Registry of Motor Vehicles branch in your locality and file for a duplicate. It’s inappropriate to donate cars in MA that don’t come with their titles.
- Ensure the the title transfer is handled personally during the donation: This prevents any possibility of handing over the titles to the wrong hands. The title must be transferred only to the charity or a mandated commercial fundraiser.
If you must deal with an authorized commercial fundraiser, you must ensure that the agent is properly supervised by the charity for tax deductibility reasons.
- Know the tax deduction rules that apply to a particular vehicle donation: Different rules apply to car donations in MA. These rules are contingent on the value of the vehicle as well as the way in which the charity chooses to make use of the donation.
Nonetheless, tax deductions apply only to donations made to 501(c)(3) tax-exempt organizations and charities.
To verify if a car donation is eligible for a tax discount, visit your local Public Charities Division, or IRS Tax Exempt/Government Entities Customer Service, or go through a copy of IRS publication 78 which is available in your local library or IRS website.
Note that you’ll most probably find that most religious organizations and government agencies are not registered with the Non-Profit Organizations/Public Charities Division, or in the IRS section 501(c)(3). Nonetheless, these bodies are still eligible for tax deductible donations.
- You must clear every doubt concerning the donation before proceeding with it: The charity can choose to use your car donation in various ways.
Some may choose to repair it and give it out to the needy, others may deploy the car directly in their service cars fleet, or they may choose to resell it and channel the proceeds to the pursuit of a good cause.
But when you donate cars in MA, you’re entitled to know how your car donation will be put to use by the charity.
You should donate only to charities which disclose the way in which they intend to put your vehicle to use. You may even ask that your car be used in a particular program or for a particular purpose.
- Ask if the charity will be directly involved all the way through the donation process: Most charities choose to relinquish the responsibilities of managing and soliciting for car donations to commercial fund-raising agents.
If the charity you choose to donate to deploys a for-profit agent to handle the donation, you should inquire about the commission which the agent is paid.
- Don’t donate cars in MA to charities that promise gifts in return: If a charity promises to send you gifts in return for your car donation, it’s most likely planning to deduct the cost of the gifts from your donation’s tax deductions. Not only will such a charity shave some value off the tax credit obtainable through your donation, it’ll ultimately incur certain unwarranted expenses in the course of providing you with these gifts.
How To Properly Transfer The Liability of Your Donated Vehicle
If your car’s Certificate of Title was issued before 1980, the state of Massachusetts will waive the title requirements for the transfer of the car’s liabilities.
Besides that, you must assign your car’s title to the charity or it’s authorized fund-raising agent in order to donate your vehicle legally.
To assign the title, you must enter the exact name of the charity or it’s mandated for-profit agent, your vehicle’s accurate mileage, as well as your signature and the date of transfer on the back of the vehicle’s title.
You should also keep personal copies of both sides of the title, as well as copies of all the donation’s paperwork. Your personal records of your donation’s paperwork should include:
- The name and address of the charity.
- A written acknowledgment of the donation from the charity.
- Details of the car’s make, model, year, condition, and fair market value at the time of the donation.
- How you acquired the vehicle.
- A copy of the car’s particulars, including the title and registration.
Car donations in MA can be carried out in a breeze. Therefore, it’s a prudent decision to turn your junk, broken or unused vehicle in MA into a tax deductible donation to credible charitable organizations that run touching programs.
Most charities prefer to refurbish donated car and then give them out to people in need of it.
But if the cost of repairing and maintaining a donated vehicle is too expensive for the charities, they may choose to sell the vehicle or any of the vehicle’s parts and then commit the proceeds to the pursuit of various charitable goals.
Most charities make it all the more easier to donate cars in MA by helping out with the paperwork and logistics like the towing services. Once the charity sells your car or puts it to use in another way, they’re obliged to send you the donation’s tax paperwork within 4 to 12 weeks.