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Depending on who you ask, car donation is a lot of different things. In the best case scenario, it is an easy process that allows charities to raise money with minimal effort. The difference comes from the organization trusted to manage their vehicle donation program. You want to know where your car — and the money from your donation — are going. At Car Donation Wizard, we understand your concern. We offer the best car donation returns to our charities nationwide, and we’ve got proof to back it up. The best way to avoid a car donation scam is to do your research and ask the right questions.

In November 2018, the California Attorney General released a report on all charitable fundraisers and their returns to the charities they purport to help. Some of the returns might surprise you.

Numbers Don’t Lie

The numbers here regarding returns to charity with vehicle donations comes from a 2018 California Attorney General Report that analyzed 597 reports from different charitable organizations. The report reveals that in 2017, $88,283,142.42 was raised through charity car donation programs. How much went to back to the charities? Only $29,923,577.93 actually made it to the intended organization. On average, only 33.9% of the gross proceeds made it back to the charity.

That isn’t just a flunking grade, but an abysmal reflection of a potentially valuable donation source.

That is where Advanced Remarketing Services, the engine behind Car Donation Wizard, comes in. Our donation program returned 81.43% of the gross proceeds directly to the charity, well over twice the industry average. That is the difference between an average donation program and an outstanding program. 

car donation scam

 

Signs of a Car Donation Scam

If you are getting ready to donate a car, you might be taking a look at some prospective charities and comparing different donation programs to see which one will not only tow your car away quickly but support the causes you care about. The main thing to keep in mind is how much the organization promises to return, and if they specify if it is the net or gross proceeds.

Does the organization promise a percentage of the net proceeds to your charity, or do they guarantee a specific amount of the gross returns?

Let’s break it down. The gross refers to the total amount of the sale. The net is the amount the seller receives after costs have been removed. If your donated car sells for $1000, that full amount is the gross. If the towing and auction fees total $200, the net is $800. Our vehicle donation programs return around 80% of the gross proceeds.

Some organizations report that they give back 70% of the net proceeds. Where is the rest of the money going? Maybe to advertising costs, or maybe the commercial fundraiser takes a percentage of the proceeds as their own cut.

Be sure to ask how much of the gross proceeds go back to your charity. Organizations that only tell you what percentage of the net proceeds are returned may indicate a car donation scam or at least a less-than-trustworthy program.

Car Donation Wizard gives more back to your charity than any other vehicle donation program out there. When you are donating your car, avoid car donation scam and a less-than-beneficial outcome for your charity. It’s simple, trust Car Donation Wizard. It’s not magic. It’s integrity.

If you’re looking for more news about car donation fraud, we’ve got you covered. We are proud of the returns we guarantee to our charities and know our work sets us above the rest. We’ve raised over $150,000,000 for charity, and will continue to raise the bar for car donations.