The FTC and 19 state agencies have stopped an alleged charity fundraising scheme that authorities say made deceptive claims to donors who donated vehicles to charity. Kars-R-Us.com claimed donations would help fund free and low-cost breast cancer screenings, but regulators said that of the more than $45 million collected from over 84,000 donated vehicles, less than 0.5% went toward breast cancer screening services.
Randy Hutchinson, President and CEO of the Better Business Bureau of the Mid-South and host of "Protecting Your Money," says consumers should research charities before donating. You can check out a charity at the BBB Wise Giving Alliance website, give.org.
If you plan to claim a tax deduction for a vehicle donation, make sure the charity is tax-exempt under IRS code 501(c)(3), unless it is a church or other house of worship. The charity should also inform you of the vehicle’s sale price, which usually determines the amount of your tax deduction and could be more or less than the vehicle’s fair market value.