Cash For Clunkers cause Charity Problems

http://connect2utah.com/content/fulltext/?cid=45141

Cash For Clunkers Charity Problems

Reported by: Dan Rascon

Monday, Aug 10, 2009 @06:50pm

Another big blow for charity organizations who count on old car donations for funding.

First it was a new tax code in 2004, then last year the economy went belly up, and now it’s the federal governments Cash for Clunkers program.

“It’s not a good program for charities,” said Luz Lewis Perez with the National Kidney Foundation of Utah. “We use these vehicles to recycle them or sell them, so we can use the money for our programs.”

According to Craig Cutright with the American Lung Association of Utah they’ve taken about a 50% hit in car donations since the program started a few weeks ago.

“It has not been good…it doesn’t seem like the federal government wants to support non profit organizations,” said Cutright.

The Cash for Clunkers program offers car owners a 4500 dollar credit towards a brand new car for their gas guzzling beat up car as long as it fits into certain requirements.

The engine is then fried and the car is sent to the salvage yard to be recycled.

Many of these clunkers would be donated to charity organizations and the owner would then get a tax credit of 500 dollars or more depending on how much it would sell for.

“It’s taking car sales away from used car dealers it’s taking car donations away from charities, and it’s taking perfectly good vehicles off the road and forcing them to be recycled,” said Perez.

But both organizations say Utahns are generally very giving and believe they will be able to pull through.

“We are hoping to just weather the storm,” said Perez. 

If you would like to donate to either organization you can go to:  www.kidneykars.org or www.lungutah.org

Monday, Aug 10, 2009 @06:50pm CST

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Another big blow for charity organizations who count on old car donations for funding.

First it was a new tax code in 2004, then last year the economy went belly up, and now it’s the federal governments Cash for Clunkers program.

“It’s not a good program for charities,” said Luz Lewis Perez with the National Kidney Foundation of Utah. “We use these vehicles to recycle them or sell them, so we can use the money for our programs.”

According to Craig Cutright with the American Lung Association of Utah they’ve taken about a 50% hit in car donations since the program started a few weeks ago.

“It has not been good…it doesn’t seem like the federal government wants to support non profit organizations,” said Cutright.

The Cash for Clunkers program offers car owners a 4500 dollar credit towards a brand new car for their gas guzzling beat up car as long as it fits into certain requirements.

The engine is then fried and the car is sent to the salvage yard to be recycled.

Many of these clunkers would be donated to charity organizations and the owner would then get a tax credit of 500 dollars or more depending on how much it would sell for.

“It’s taking car sales away from used car dealers it’s taking car donations away from charities, and it’s taking perfectly good vehicles off the road and forcing them to be recycled,” said Perez.

But both organizations say Utahns are generally very giving and believe they will be able to pull through.

“We are hoping to just weather the storm,” said Perez. 

If you would like to donate to either organization you can go to:  www.kidneykars.org or www.lungutah.org