New York Unravels Automobile Donation Scam

This along with subpoenas being handed out to 15 other recognized automobile donation services. It appears the state of new york is cracking down on fraudsters and cleaning up a service where there are really two victims. Those who donate and those who are supposed to receive the proceeds of those donations.

So this of course casts a shadow over the entire industry. Now people are going to have to do far more homework when they intend to donate. Although they should be doing this already many people are now feeling the sting from this unscrupulous con artist.

So what is the average person supposed to do to ensure that you are making a donation to a legitimate organization? The main thing is to do your homework. The first place to look is on the IRS website and see what charities have registered to be non profits. Legally you can only get a tax deduction if the charity you choose to donate to is a registered non profit group. This is an added bonus for anyone who is planning to donate their car, truck, or boat.

Second thing you should be doing is scrutinizing the Charity itself. Make sure they have a good reputation and that the other who have donated to them have had a good experience.

There are just way to many ways to be scammed these days and this is just underlining the fact. We all have to be a bit more careful now. This is going to be an interesting storey as this case and others start to emerge and we all get to see the extend of how deep this fraud goes.

For those who have donated to this organization or the others being investigated there is little to nothing that can be done as of yet. It is unlikely that the donors or the recipients of those donations will see anything in return. Although this isn’t the only case that is being looked at by the attorney General of New York said other well know organizations are also being investigate to see if they have been committing any wrongdoing. Some charities are now suspected of gathering hundreds of thousands of dollars in automobile donations but only actually giving a small percentage of that to their respective charities. In one case only about 9% of what the group received went to the charity.

Not only is this robbing the donors and the recipients it is also a third slap in the face to the US public . These groups are claiming tax exempt status and are pleasantly enjoying the money you donated.

Start by looking at the IRS database for registered charities and if at all possible avoid using a donation service all together. There are some charities out there that will receive donations directly. Although you have to find out before donating to them because it can often be a bigger burden for a charity that isn’t set up to process the donation.

To really avoid any hassle you  can always take a more proactive approach and try selling the vehicle you plan to donate and then take the proceeds and donate that directly to the charity. This makes a bit more work for you but you can be assured that the money you are donating will go to the charity and not the pockets of dishonest people.