A car donation program for Volunteers of America in Sacramento helped put a new roof over needy mothers and infants, and paid for a van to transport homeless people. Blessing or curse, car donation programs are growing in popularity as a new way to finance charities. Donors like them because they get rid of clunker cars and claim sizable income tax deductions.
Charities are equally pleased with new sources of revenue.
Meanwhile, the programs have attracted attention from regulators and tax officials, who see plenty of room for abuse. Kathy Clowes, left, and Shirley Maier fill their arms with books to be signed by their authors at the National Kidney Foundation Authors' Luncheon in November. In an adjacent room, authors waited at tables to greet donors and sign their books. Dick Schmidt Carroll Schroeder, executive director of the Stanford Lathrop Memorial Home for Children in Sacramento, was surprised when his board proposed vehicle donations four years ago. But it didn't take long to see the benefits.