‘Cash for clunkers’ could put dent in donations
Some nonprofit organizations in the region fear the federal government’s “cash-for-clunkers” program may siphon away cars that otherwise would have been donated to them to help pay for social service programs.
Still, the agencies say its too early to truly gauge the impact of the federal program, which began in late July with $1 billion in funding and got another infusion of $2 billion late Thursday that should extend it to at least Labor Day.
In the first five days of the program, Coloradans turned in as many as 5,400 vehicles on newer, more fuel-efficient vehicles, the Colorado Automobile Dealers Association estimated.
Nonprofit groups say some of those cars probably would have been donated to them.
The incentive program offers rebates of $3,500 to $4,500 for older, gas-guzzling vehicles that are turned in for more fuel-efficient new cars.
“In terms of impact, it’s still a bit early to tell,” said Melissa Lyby, director of Goodwill Industries in the Pikes Peak region. “Donations the last week of July and the week before that have decreased. We might get 10 to 20 cars a week normally. In the last week of July we got 11 cars and the week before that eight. This week we’ve had six or seven donated.”
Most large nonprofits send the cars to auction, and the sale proceeds can represent a sizable chunk of money to be used for programs. The local Goodwill, for example, took in 640 cars and trucks last year, which raised almost $370,000 for its programs, Lyby said.
The Salvation Army, which also actively seeks the donation of vehicles, could not be reached for comment.
Some smaller nonprofits give donated vehicles to people who normally couldn’t afford a vehicle. Because they neither get nor need a large number of vehicles, they hope there are enough well-meaning folks out there who will continue to donate the occasional vehicle to them.
“We do have families that need cars, and we have not had any offered recently,” said Tom Agnew, co-executive director of Interfaith Hospitality Network. “But I really don’t know (if cash-for-clunkers) is responsible. We have gone for periods of time without receiving a car.”
Steven Morrow, president of Morrison-based Cars Helping Charities, acts as a middleman for more than 200 charitable organizations nationwide. His for-profit company picks up and disposes of about 3,000 donated cars a year, earning a small fee on each vehicle and giving the lion’s share to the charities.
Morrow said cash-for-clunkers is bound to have some kind of effect on car donations, which already have been down about 20 percent nationwide this year because of the poor economy.
“When cash talks, the charitable part might go out the door,” he said. “I know it’s happening. It’s just hard to quantify yet. Probably in a month we’ll have real figures.”
Donating a vehicleIf you would like to donate a vehicle to Goodwill Industries, call 633-1988. The nonprofit will pick up the car, which can be running or not. Interfaith Hospitality Network also accepts vehicle donations. Call 329-1244. Other nonprofits in the region, including Catholic Charities of Colorado Springs and the Salvation Army, also welcome vehicle donations.
Mechanic Mike Blair worked on a minivan at the Good News Garage in Burlington, Vt. Director Mike Muzzi was worried that the Cash for Clunkers program might hurt the business of fixing up donated cars and giving them to needy families but says it hasn’t. Photo by THE ASSOCIATED PRESS





