Archive for the ‘Research’ Category

State Attorney General Cracks Down on Fraudulent Car Donation Charities

Thursday, July 15th, 2010

New York State Attorney General Andrew Cuomo recently announced on Tuesday June 22nd that he has subpoenaed 16 different car donation charities and fundraisers that could be scams. This is all part of an ongoing investigation that Cuomo hopes will halt fraudulent activity that takes advantage of trusting citizens.

One organization, Feed the Hungry (FTH) is charged with raising $430,000 with car donations between 2002 and 2009 but only donating 1.8 percent of that towards its said cause of feeding homeless New Yorkers. The rest of the money, was allegedly spent on personal purchases by the director of the charity, Nicholas Cascone Jr.

When you decide to donate a car, it cannot be expressed enough that you need to carefully consider your options. While you might believe you are making a charitable contribution, you might just be taken for a ride instead.

“We remain concerned that similar practices may prevail in other organizations and will diligently work to root out any other sham charities. As we continue working to clean up this industry, we encourage generous New Yorkers to stay informed and to keep donating to worthy charities,” said Cuomo.

Other charities that are under the microscope include Kars 4 Kids, Bless the Kids and Lechaim for Life. While you can still receive your car donation tax deduction if you were to donate to such charities, you might not be donating to a worthy cause and these companies are still taking advantage of their nonprofit status.

Choosing A Car Donation Charity

Wednesday, May 19th, 2010

In the car donation business, a few charities are, unfortunately, less than stellar. In the news recently, you may have heard about Cars 4 Causes®, which is currently undergoing a lawsuit for allegedly failing to pay the funds owed to the fundraiser. You can read about the lawsuit here, but here is the short version of what happened:

  • Cars 4 Causes hired Charity Development, LLC to handle the logistics of car donations. Charity Development handles the repair, storage and selling of the cars given to Cars 4 Causes, and Charity Development in turn gives Cars 4 Causes the money.
  • Charity Development claims that they have been delivering more proceeds to Cars 4 Causes than the company has actually donated to charities.
  • Charity Development asserts that Cars 4 Causes is only giving about 16% of the proceeds to the designated charities, while they are spending the rest on their own internal overhead and other programs.

When you want to donate a car to charity, make sure you choose a reputable company that will do its part of the bargain. Make sure you research the charity company online and find out everything you can about them. If they are reputable, then they will not have anything to hide.

At 1800CarDonations.org, we care just as much about your charity car donation as you do. Make sure your donation goes to people in need, and make sure you choose a company that can help your donation make a difference.