Why You Should Beware of Donating Your Old Car to Kars4Kids

Craig HueyCurrent Events1 Comment

Lots of nonprofit organizations advertise these days for car donations.

One of the most well-known – because of its catchy commercial jingle – is Kars4Kids, located in Lakewood, New Jersey and Toronto, Ontario.

You’ve probably heard their commercial on ESPN or Fox News – or perhaps you’re one of their 880,000 YouTube viewers.

You might even be thinking about donating that old clunker in your driveway or garage to Kars4 Kids…

Don’t.

Nowhere in the Kars4Kids radio and TV ads are you told where the proceeds of your donated car are going … or how the proceeds will help kids … or which kids will benefit.

The $30 to $40 million in revenue raised annually by Kars4Kids benefit Oorah – a national organization which specializes in outreach programs to secular non-observant Jews.

In 2009, the states of Pennsylvania and Oregon both fined Kars4Kids $65,000 for false and misleading advertising.

Last year, the Minnesota Attorney General conducted a compliance review of Kars4Kids and submitted a 300-page report to the IRS. The report stated:

  • Over 40,000 cars are donated annually to Kars4Kids, but only 44% of the funds raised actually go toward good works.
  • Oorah had invested funds in a Ponzi scheme.
  • Kars4Kids lost $9.2 million on real estate investments controlled by the second cousin of the Kars4Kids CEO.

If you’re thinking of donating a car to charity – either now or in the future – stay away from Kars4Kids.

 

What do you think? Write me at [email protected]

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