The Real Purpose of Kars4Kids

If you’ve ever considered donating your used car to a non-profit organization, you’ve do doubly heard of Kars4Kids.

The catchy Kars4Kids jingle can be heard on TV stations, over the radio, and even online.

Who is Kars4Kids

This charity claims an easy pickup of used car donations. These donations are then supposed to be used to benefit kids. Which charities actually received the cars or proceeds from donated vehicles’ sales was left pretty vague. This should be a red flag for anyone looking to support a non-profit. Without transparency of how your donation is put to work, there’s no telling what actually happens.

In 2017, the Minnesota Attorney General accused Kars4Kids of misleading donors. Based on an audit looking at 2012-2014, this organization raised $3 million in Minnesota through car donations. Unfortunately, less than one percent ($12,000) of the money raised actually went towards pediatric programs.

What was found is that about 90% of the money raised by Kars4Kids actually goes to a sister organization called Oorah. Oorah is a charity out of New Jersey that operates summer camps in New York for Jewish youths. While the funding of Jewish summer camps is certainly a worthwhile endeavor, supporters feel as if they are being swindled. Oorah also reported almost $10 million lost in real estate transactions.

The other problem is that Kars4Kids spent $17 million on ads, which is more than what actually went to charities. In a sense, car donations go more towards paying for additional ads than towards programs that help children. Similar allegations were made in Oregon and Pennsylvania before settlements were made out of court.

It’s important to note that some money raised by Kars4Kids does go towards children’s programming, even if most of it is under the Oorah umbrella. People are welcome to donate to Kars4Kids, but they should be aware of where their money actually goes.

Alternative Car Donation Options

For drivers looking to donate their cars to organizations that are more transparent and upfront about how funds are used, there are still plenty of options. Finding these organizations can be difficult, though, since other organizations are competing against Kars4Kids’ enormous marketing budget.

Here are a few options you could consider, but always do your research before making a commitment for your car donation.

The Newgate School

The Newgate School is an official non-profit organization that offers tuition-free education to at-risk adults. Students learn everything they need to know to become auto mechanics and obtain sustainable employment. This program uses generous car donations as a way to both offer hands-on experience to students and funding for the school. Once donated cars are repaired and restored, they are sold. The proceeds go back into keeping the program free for students.

Habitat For Humanity

Habitat for Humanity has a longstanding non-profit that helps create housing for those in need. This organization also works with families across the country to help older adults upgrade/improve their homes, rebuild neighborhoods, respond to natural disasters, and provide financial education. Donated cars can be used as either vehicles to help the organization’s many transportation needs or be sold to put funds back into the organization.

Twin Cities PBS

Every community can benefit from the funding of a local PBS station. Residents of Minnesota, for example, may want to avoid Kars4Kids and donate to a station that helps engage, education, and motivate children across the Twin Cities area. From inspiring kids with lessons from Daniel Tiger educated the entire family through shows like American Experience, PBS is a worthy organization to accept your car donation.

If you’re considering donating a car to a local non-profit, make sure to inspect the company’s website for more information. You can also use sites like Charity Navigator to learn more about how that organization stacks up against the competition.