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Car Donation Scams

By: Thomas Morva
Submitted: 2007-01-17 16:24:52
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Many car donation programs accrue benefits to every one except the charities or the non-profit making organizations they are intended to benefit. Many car donation organizations declare that they will deal with the towing of the old clunker, title transfer, and hand over the sales proceeds to the donor's favorite charity. Many such car donation programs have been organized by various well-known organizations with an intention to raise money. It sounds like the perfect deal where the donor gets rid of the car without any hassles on one hand and on the other has a feeling of helping someone in need and in addition to this, gets a tax deduction benefit too. So it comes as no surprise that such car donation programs are becoming popular.

But all this might not be as true as it appears. Unfortunately, there's a catch, which people are unlikely to hear about through television ads. The amount of tax deduction that benefits the donor is not necessarily the amount being donated to the concerned charity. The problem with car donation programs is that it proves more beneficial to the donor than the charity. These programs are badly flawed. Most charities do not have their own car donation programs and hence rely on private fundraising organizations to run programs for them. Therefore, these companies are in a position where they enjoy a monopoly that lets them extract an exorbitant chunk of the car's value. From the $200, these organizations deduct the supposed free of cost towing fees, title transfer fees, etc. So in this case, the actual amount received by the charity may not be more than $100.

Some car donation programs may not be fully regulated. Private companies are to collect old cars and donate it to charities but the question here is that are these charities really receiving the donation or are criminals cashing in. A lot of companies are towing and selling cars but not forwarding the proceeds to the charities. Donated car programs are the least efficient ways to help charities. They also drain the much needed federal government tax revenue.

Car Donations provides detailed information on Car Donations, Used Car Donations, Charity Car Donations, Car Donation Tax Deduction and more. Car Donations is affiliated with Donate a Used Vehicle.

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