"Charities hurt as key funding falls; Cash for Clunkers, sour economy mean fewer people donating cars" by Erin Ailworth, Globe Staff | December 25, 2009
Car donations aren’t the money-making vehicles they once were for charities.
This year fewer people are donating used cars, partly because the recession is forcing them to drive their old cars longer, while others have turned their rusting wheels into the Cash for Clunkers program.
The dwindling number of car donations, while not a major source of revenue for most nonprofits, couldn’t come at a worse time. Charities nowadays need every penny as overall donations shrink and the need for their services grow in a bad economy.
But BANKERS got BILLIONS, sigh.
Even as organizations ramp up seasonal ads soliciting old cars - who hasn’t heard the 1-877-Kars-4-Kids jingle? - many say they worry that vehicle donations will continue to drop or remain flat. Those who run car donation programs say they typically see a surge the week after Christmas because people want to be able to claim the charitable deduction this year.
The Salvation Army estimates that vehicle donations and related revenue nationwide are down at least 25 percent this year.
Just like Christmas spending!
Timothy Raines, who commands the group’s adult rehabilitation centers in the northeast, said people have turned in about 4,600 fewer vehicles, and those that are coming in are of poorer quality. Money from donated cars goes to the rehabilitation centers, so when donations drop, the centers must look elsewhere for funding....
Even though many nonprofits only receive a portion of the proceeds, car donations have become a hassle-free way for organizations to raise funds. The programs don’t cost a lot, nonprofit officials say, and third-party businesses often take care of processing cars for a cut of the profit. The cars are often scrapped, sold, or spruced up and given to the needy. Susan Ruderman of the Animal Rescue League of Boston said that’s why many consider the fund-raising method a no-brainer....
Related: Reason Number Two Why No One Reads the Boston Globe Anymore
Strange how those charities bounced back, huh?
Taron Reeves, president of Car Program Inc., which handles car donations for about 2,000 charities nationwide, estimated he had to cut 12 jobs through attrition and layoffs when the IRS tax rules changed, and now the recession has taken a 10 percent bite out of his business. That’s not just bad for him, it’s bad for the nonprofits, too. Reeves and other processors say they hope Delahunt’s bill will help push vehicle donations up. “Charities are facing revenue shortfalls in a number of areas,’’ Reeves said. “Times are tight.’’
Except for banks and war-profiteers.
