Car donation refers to the practice of giving away no-longer-wanted automobiles to charity organizations. In the United States, charitable donations provide a tax benefit; as such, this type of giving has become very popular. For values less than $5000, the value of the tax deduction comes from the donor’s own estimate of the car’s value, even if the charity receives much less money from actually selling the car (usually at auction).
Some critics have claimed that this is essentially a tax shelter. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread in the U.S.; in 2000, 733,000 taxpayers reduced their taxes by $654 million. Wikipedia
Recently the fundraising arm of Children’s National Medical Center has scrapped its vehicle-donation program amid a dispute with a company that it says diverted hundreds of thousands of dollars, used money for personal expenses and caused the nonprofit to file incorrect information on financial reports. The Washington Times.
The Children’s Hospital Foundation asked a federal judge to issue a default judgment against Charity Vehicle Services Inc. and several of its executives in a civil lawsuit that the nonprofit foundation filed earlier this year. The suit seeks nearly $700,000 in recompense for losses.
Its not wront that companies who work on the management of these cars donation programs being paid, its their rights ! but making cars donation a standalone business to make millions. Its no longer called charity but swindling.
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