Impact of CARS Legislation Looms for Nonprofit Resellers

June 26th, 2009

Goodwill Industries International is concerned about the passage of Car Allowance Rebate System legislation (C.A.R.S.) that would provide vouchers of up to $4,500 to consumers that trade in their old vehicles for more fuel efficient vehicles, while mandating the destruction of their old vehicles.

The sale of gently-used goods by nonprofits such as Goodwill not only funds critical human services programs, but protects the environment by preventing these items from being prematurely disposed of in our nation’s landfills. In 2008, 90 local Goodwill agencies across the United States reported nearly $14.5 million in combined revenue resulting from vehicle donations; approximately 85 percent was used to supplement government investments in job training and employment services for people with barriers to employment.

While intended to reduce vehicle emissions and stimulate auto sales, requiring trade-ins to be “crushed or shredded,” would create unintended consequences for charitable giving programs. Goodwill commends efforts to reduce emissions and increase fuel efficiency, and believes that such efforts should not be at the expense of efforts that help people gain and maintain employment and actively contribute to the social and economic welfare of their communities.

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