Clunkers program slows car gifts to U.S. charities
The popular "cash-for-clunkers" program is boosting U.S. auto sales and manufacturing but is also slashing donations to charities that rely on gifts of cars to fund social programs, charity officials say.
Volunteers of America and other charities that receive tens of thousands of cars each year said such donations have quickly fallen up to 12 percent -- and fear a 25 percent drop eventually, or over $100 million -- as owners rush to trade gas guzzlers for new fuel-efficient models while federal rebates last.
"We started seeing it right away in July" when the program began, said Jim Hartman, vice president of vehicle donations at Volunteers of America, a nationwide charity. "It varies by market, but there's been an 11 to 12 percent drop compared with last year."
"The cars I'm seeing cashed in as clunkers, like older SUVs, are absolutely the typical donation to us," he said.
The clunkers program gives consumers a U.S. government rebate of up to $4,500 for trading in older, inefficient vehicles for new, fuel-sipping ones. Washington scrambled early this month to add $2 billion when the popular program's initial $1 billion funding was quickly spent.
Rick Frazier, director of the car donation program at The Military Order of the Purple Heart, which assists U.S. veterans, estimates the $3 billion will result in 700,000 clunker trades.
Frazier said charities would normally receive 25 percent of those 700,000 cars and, at an average value of $600 each, they could be out $105 million over 24 months.
"That will be devastating," he said. "A lot of services will have to be cut."
Clunkers program slows car gifts to U.S. charitiesn| U.S.n| Reuters
Volunteers of America and other charities that receive tens of thousands of cars each year said such donations have quickly fallen up to 12 percent -- and fear a 25 percent drop eventually, or over $100 million -- as owners rush to trade gas guzzlers for new fuel-efficient models while federal rebates last.
"We started seeing it right away in July" when the program began, said Jim Hartman, vice president of vehicle donations at Volunteers of America, a nationwide charity. "It varies by market, but there's been an 11 to 12 percent drop compared with last year."
"The cars I'm seeing cashed in as clunkers, like older SUVs, are absolutely the typical donation to us," he said.
The clunkers program gives consumers a U.S. government rebate of up to $4,500 for trading in older, inefficient vehicles for new, fuel-sipping ones. Washington scrambled early this month to add $2 billion when the popular program's initial $1 billion funding was quickly spent.
Rick Frazier, director of the car donation program at The Military Order of the Purple Heart, which assists U.S. veterans, estimates the $3 billion will result in 700,000 clunker trades.
Frazier said charities would normally receive 25 percent of those 700,000 cars and, at an average value of $600 each, they could be out $105 million over 24 months.
"That will be devastating," he said. "A lot of services will have to be cut."
Clunkers program slows car gifts to U.S. charitiesn| U.S.n| Reuters
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