Cash for Clunkers taking car donations away from U.S. charities

Charity organizations, such as Volunteers of America, say that the Cash for Clunkers program may be increasing U.S. auto sales but is also slashing donations made to charity organizations that rely on gifts of cars to fund programs.

Over the last 20 years, U.S. charities have started car, airplane and boat donation programs that they convert to cash to fund services for the needy, disabled vets and at-risk youths. Volunteers of America and Purple Heart each get about 40,000 to 50,000 car donations a year.

Charities like Volunteers of America said that such donations have quickly fallen up to 12 percent and may result in a 25 percent drop eventually – or about $100 million.

“The cars I’m seeing cashed in as clunkers, like older SUVs, are absolutely the typical donation to us,” said Jim Hartman, vice president of vehicle donations at Volunteers of America.

– By: Omar Rana

Source: Reuters