We break for cars - Letters

Washington Monthly, Sept, 2002 by Jon Engel

Tyler Cabot ("The Tow-Away Tax Break," June) concludes that "with each car towed in the name of charity, donors benefit greatly, fundraisers obscenely, and the poor only occasionally" However, this is not always the case. The Working Cars for Working People program of Community Action Inc. in San Marcos, Texas, is a prime example of a car donation program that really works. One-hundred percent of the benefit of the program accrues directly to the low-income family that receives a car through the program.

Unlike the programs Mr. Cabot describes, Working Cars for Working People does not aim to raise funds for the not-for-profit organization that operates it. Rather, it aims to provide poor people who are ready and able to work with the transportation they need to gain and keep employment. In November and December of 2001, the program provided working cars to 23 families. Within 30 days of receiving a car, 65 percent of the recipients reported increased earnings from work, 57 percent obtained health insurance through their employer, and 44 percent left the Temporary Assistance for Needy Families program.

The government and the taxpayer benefit because the value of the car recipients' decreased reliance on taxpayer-supported social programs far outweighs the value of the donors' tax deductions, and the not-for-profit-agency, Community Action Inc., wins because it accomplishes its mission, which is to promote opportunities for low-income people to succeed.

There are many unscrupulous fundraisers in the car donation business. But not all car donation programs are shams of scams, and any limitation on the car donation tax deduction would significantly hurt programs that help poor people. If any of your readers in the Austin-San Antonio corridor would like to donate a car, get a nice tax break, and sleep well at night, they can give us a call. They might even see their old car commuting back and forth to work in the near future.

Jon Engel
Community Development Director,
Community Action Inc.,
San Marcos, Texas