How to Donate a Car in Maryland

By Justine Depalma

  • Overview

    If you're having trouble selling a used car, consider donating your vehicle to a Maryland-based charity. The donor receives a federal income tax deduction while the charity receives much-needed funds to operate its programs. The state of Maryland has special rules governing the car donation process.

    • Step 1

      Find a charity. The state of Maryland heavily regulates car donations. In order for a charity to accept car donations, it must be a licensed wholesaler. There are thirty Maryland-based charities that are allowed to take car donations (see Resources below).

    • Step 2

      Select Goodwill Industries of Monocacy Valley as your charity. Goodwill provides education and job opportunities for persons with disabilities. Contact Goodwill at (301) 662-0622.

    • Step 3

      Choose the Maryland School for the Blind, a non-profit school for the visually impaired. The Maryland School for the Blind serves over 800 Maryland students every year. Vehicle donations may be arranged by telephoning (410) 444-5000.

    • Step 4

      Pick Maryland Public Television Foundation. This organization provides funding for quality educational television in the state of Maryland. Arrange to donate an auto by calling (410) 581-4075.

    • Step 5

      Sign your title. Maryland law allows transfer of title only if the title is clear. Ask your lender for a letter stating they no longer have a lien. Complete all of the information on the title form, including the odometer reading. For the information concerning the buyer, fill in the information for the charity.

    • Step 6

      Remove your license plates. Maryland law requires the plates to be returned to the Department of Motor Vehicles or for a transfer plates form to be filed.
    • Skill: Moderately Easy
    • Ingredients:
    • Car title
    • Photographs of the car
    • Receipt from the charity
    • Tip: Get a written appraisal from a car dealer if your car is worth more than $5,000. IRS regulations require a copy of the appraisal to be attached to your income tax return.
    • Tip: Keep a copy of the receipt that the charity sends you. IRS regulations limit your deduction to the gross sales price of the car.
    • Tip: Take pictures of the car for your records.
    • Tip: Cancel your insurance.
    • Warning:
    • Consult with your tax preparer to make certain you are following IRS regulations.

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