ST. PAUL, Minn. - A group that has been advertising car donations that support local charities, such as Make-A-Wish, was actually giving most of its donations to two, private for-profit corporations, according to the Minnesota Attorney General Lori Swanson.
Swanson held a press conference Wednesday morning to announce a compliance report that's been issued, questioning the payments of one of the nation's largest car donation charity -- Car Donation Foundation, an organization formed and run by William Bigley and Randy Heiligman.
According to Swanson, Car Donation Foundation solicits car donations from Minnesota residents -- and residents throughout the United States -- with the promise to donate a significant amount of the profits to local chapters of Make-A-Wish. The CDF sells and scraps the vehicles and has told its customers it donates "50 percent to 70 percent" or in one case, all the profits, to charity, according to the report.
"From 2011 to 2014, about 80% of the proceeds car donations foundation received from selling or junking these cars went to fund raising and overhead with only about 20% going to charity," said Swanson, "and $36 million dollars paid to two for profit corporations, which are owned by the founders and managers of the charity." .
"Donors need transparency to make informed decisions, including who they are donating to and how their donation will be spent. They haven't been given that here," said Swanson..
In addition, the CDF advertised online and in newspapers using the name "Wheels for Wishes," along with Make-A-Wish, but did not disclose that the CDF would be the recipient of the donated vehicles, and not Make-A-Wish, which is against state law.
The CDF was placed on the "Scrooge List" of the South Carolina Secretary of State and the "Worst Charity List" of the Oregon Attorney General in 2014, according to Swanson.
Several donors of cars to the CDF joined Swanson at the morning announcement. Michele Cunningham of Brooklyn Park said she "specifically asked them (CDF) if the money would be going to 'Make A Wish'...they assured me that the money was going there. So, I am very disappointed."
Sherry Glanson of Brooklyn Center said she donated three cars in recent years to CDF.
"I thought for sure that the money was going to go to make a wish," said Glanton. "So, it is disappointing to find out that it did not ."
6th Grade teacher Erica Schaps of Roseville felt betrayed by the small percentage of proceeds going to "Make a Wish".
"I have had a couple of students that have gone on 'Make a Wish' trips and so, I assumed that I was contributing back to future students or hopefully, those students that went on that trip," said Schaps,
"I thought I was gonna give money so kids could go to Disneyworld."
