Wisconsinites Targeted in Car Donation Scam

According to a press release from the Better Business Bureau:

You may have seen the ads in local community newspapers or heard the radio ads, including a catchy jingle that says, “Be a star, donate your car.”

The charity behind the advertisements is Heritage For The Blind, a Brooklyn, New York-based organization, that, according to its website, works to help the blind and visually impaired and offers free information about vision loss and eye disorders.

It has no office in Wisconsin, but is heavily advertising here, currently asking people to donate their “vehicles, boats and RV’s” and is actually offering a “free 3-day vacation” for doing so. 

According to the vacation offer’s details, “Donors will enjoy a 2-night hotel stay in the city of their choice of available cities.” Taxes, fees, transportation and meals are not included.  The offer also says that a “refundable ‘Reservation Guarantee Deposit’ is required.”

There is one “available city” for Wisconsin: Wisconsin Dells, otherwise known as “the water park capital of the world”, but also well known for timeshare solicitations.

Charities soliciting for donations are required by Wisconsin state law to be licensed.  However, Heritage For The Blind has not provided the Wisconsin Department of Regulation and Licensing with information and its license expired July, 2006. According to DRL, if an organization’s license is expired, it should “cease solicitation until such time as they once again meet (its) qualifications.”

Heritage For The Blind has also not provided the Better Business Bureau’s Wise Giving Alliance with requested information on its charity, including its annual report and financial statements, earning it the following non-disclosure statement:  “Without the requested information, the Alliance cannot determine if this charity adheres to the Standards for Charity Accountability.”

In addition, the Wisconsin BBB warns that donations to Heritage For The Blind may not be tax-deductible, as donors may expect.  According to the Internal Revenue Service regarding “Contributions in Which You Benefit”, if you receive or expect to receive a financial or economic benefit (such as a vacation) as a result of making a contribution to a qualified organization, you cannot deduct the part of the contribution that represents the value of the benefit you receive.

“Consumers naturally have many questions about a charity and what it does with the money it receives,” said Ran Hoth, BBB president/CEO. “Where exactly does the money go?  Does it go to the actual cause for which it was intended? Those are valid questions and the BBB always advises consumers to know the breakdown of their contributions before making a donation. We want you to give, but give wisely.” 

In June, 2010, the New York Attorney General announced its industry-wide investigation into car donation charities: The investigation was the result of a review that found fraudulent practices that deceived donors and diverted funds from those in need.  As a result, the Attorney General subpoenaed 16 charities, fundraisers and individuals involved in the charitable car donation industry—including Heritage For The Blind. The subpoenas seek materials relating to the revenues that charities and for-profit fundraisers have collected through car donation programs, and how those revenues were used by the charities. They also seek evidence to support the representations made in solicitations to potential vehicle donors. 

The Better Business Bureau offers the following tips before making a donation:

• Check out an organization with the BBB at www.bbb.org. Also check with the local charity registration office (usually a division of the state attorney general’s office).
• Do not give cash; always make contributions by check and make your check payable to the charity, not to the individual, collecting the donation.
• Keep records of your donations (receipts, canceled checks and bank statements) so you can document your charitable giving at tax time. 
• Don’t be fooled by names that look impressive or closely resemble the name of a well-known organization.
• Verify your contribution is tax-deductible with the I.R.S.

For more information or further inquiries, please contact the Wisconsin BBB at www.wisconsin.bbb.org or 414-847-6000.