Aug 3, 2009 8:31 pm US/Central
Federal Clunkers Program Hurting Local Non-Profit
by Selena Hernandez
NORTH TEXAS (CBS 11 / TXA 21) ―
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Justin Sullivan/Getty Images
The popular Cash for Clunkers program maybe stimulating the U.S. economy, but it's also apparently driving down revenue for one North Texas non-profit organization.
With more and more people trading in their 'clunkers' for federal rebates, the
Texas Can Academy is having to shift gears, to find some much needed cash.
The organization encouraging you to "Write-Off The Car, Not The Kid," is itself in jeopardy of being written off.
"This right here is the heartbeat of the organization. I need to make this money so these kids can be in our campuses. That's a lot of students who aren't going to be taken care of," Cheryl Rios of Texas Can said about her organization's struggles to turn a profit.
Texas Can relies heavily on the donation of old cars. When they're donated to Texas Can, those cars are in turn auctioned off and the money is used to help young kids complete their high school education.
"It's a half-day program. A lot of our kids are working full-time, they're pregnant, so they just need some extra help," said Rios.
But with the creation of the federal Cash for Clunkers program, Texas Can donations have dropped significantly. Just for the month of July, Texas Can donations are down $100,000.
"We need to fill that hole. We need to be able to make that revenue up somehow," Rios said of the dilemma facing Texas Can.
When residents
make a donation to Texas Can they get to write off the amount their car gets at auction on their taxes. The amount can range anywhere from a few hundred to several thousand dollars. In comparison, the Cash for Clunkers guarantees owners up to $4,500 towards the purchase of a new, fuel-efficient car.
The Cash for Clunkers program is so appealing that some donors are bypassing
Texas Can and driving down the organizations bottom line. "We obviously want the economy stimulated, but in the big planning of it all, it wasn't thought about how it would affect non-profits that rely heavily on car programs," says Rios.
For now, Texas Can organizers are hoping donations will pick up once the government program reaches the end of its road.
Texas Can has been in North Texas for 25 years and has six campuses in the Dallas/Fort Worth area.
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