You’ll Think Twice About Making a Car Donation After You Read This!
As a proud American grateful for the sacrifice made by veterans, it would be sensible for you to donate to any charity supporting them. One particular company that is at the forefront of the livelihood of vets is Vetmade industries.
As a matter of fact, their mission reads: “To return disabled warriors to the workforce.”
The company even says that about 93% of all the donated funds that it receives are pumped directly to assisting wartime heroes and vets.
The Tampa Incident
So in 2015, when Good Samaritans in Tampa donated over %2 million worth of cars to Vetmade, a mere $91, 348 was directed towards charity!
Where did the rest of the money go to?
Surprisingly, about $1.9 million of the cash was directed to a company called Just Donated Inc. This company main objective as per its mission is to promote goodwill and cause by ensuring that there is a consistent flow of vehicle donations.
That being said, vehicle donations are one of the most expensive means of charity giveaways in the realm of philanthropy.
Additionally, they are quite time-intensive and complex due to issues such as expensive towing, advertising paperwork, storage, and all the mechanical repairs that need to be considered.
As for the charities, they are not involved in all these logistics, leaving it to the middlemen who do all this for profit.
It goes without saying that such operations cost a lot of money. However, it is worth noting that some charities get a lot of income from it as compared to others.
When individuals called requesting details on the various cars and whether they had been processed for charity, the company failed to return on these calls, as well as emails.
However, according to John Campbell, Vetmade’s executive director, he said that there were a lot of costs involved regarding factors such as auction houses and truck drivers.
Additionally, Campbell comments that he’s indeed happy with Just Donated, citing the fact that they donated some amount of money. There are other donation companies that do not give back at all!
The Growth of Vehicle Donation Programs
According to the AG, vehicle donation programs have been on the constant rise in the United States, as per a document in her annual report focusing on commercial fundraising activities.
The programs are normally handled by charities, or fundraisers in the commercial spectrum that handle the program on behalf of these charities. In the end, these charities have to compensate them.
So how is the process carried out?
It usually begins by a donor contacting the commercial fundraiser or charity regarding a solicitation campaign or an ad. During the discussion, the donor will inquire about the vehicle and whether it is in tip-top condition.
If the cost of towing is lower than the value of the vehicle, then the vehicle is accepted.
The vehicle that is donated is either auctioned or sold, and the proceeds attained are divided between the charity and the commercial fundraiser.
However, the AG warns that because all the costs associated with the selling of the vehicle, the storing, the towing, and the advertising of the vehicle, are first deducted from the initial proceeds before the split, the charities tend to receive a small amount of the money.
As a matter of fact, the AG even went ahead to file a lawsuit in 2015 against commercial charity Cars 4 Causes, charging it with misleading and deceptive solicitations, not to mention the breach of fiduciary duty.
In fact, C4C has been known for notoriously spending or keeping millions of dollars in proceeds that should have been directed to other charities, as per the AG’s suit.
That being said, there have been a number of positive results for some select few charities.
For example, Advanced Remarketing Services received $1.1 million in car donations and managed to redirect $888,104 of the money to the Independent Charities of America in Larkspur, CA.
Moreover, Advanced Remarketing Services further received $523,053 in car proceeds and directed $426. 763 to the American Cancer Society in Atlanta.
Last but not least, the Automotive Recovery Services received $1.4 million in car proceeds and directed $1.1 million to the National Council of the Society of St. Vincent de Paul.
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