Cash for Clunkers, Disaster for Charities

Cash for Clunkers, the government rebate program that's cleaning out car lots, is also cleaning out the coffers of charities in our area. Instead of donating cars, people are trading them in for cash. So, before trading in your clunker for cash some charities ask that you think about the needy people not benefit ting from that money.

One Fairfield car dealer tells FOX 40 the program has "cleaned out our inventory more than have our inventory has moved, I've had to order new cars from the port." While Cash for Clunkers is boosting the economy for car dealers, it's a crushing blow for charities who use car donations to generate capital for their operations. Mission Solano in Fairfield allows people to donate their cars in exchange for tax benefits, the cars are then sold to provide funding for the Mission. The Mission's director, Raymond Courtemanche, says "We've seen a huge, about a 40% decrease in vehicles that's come onto our lot so it's having a significant impact." Courtemanche says it's impossible to drive away hunger when there are no donation cars driving onto their lot, saying "You can't compete with someone who is buying them for $4500, you know you can't compete with that so we've become a competitor with our government."

With the programs popularity, it seems the $3500 to $4500 savings is out weighing the tax breaks and the desire to donate. But Mission Solano says they hope people will see that their donation will continue to serve the community.