Minnesota AG: How Charitable Is a Wheels For Wishes Donation?

business_ethics_highlights_2A lot of people who equate not-for-profit with ethics, but there is no necessary connection between adopting the not-for-profit organizational form and ethical conduct. Here, Minnesota’s attorney general raises the concern that Wheels for Wishes’ advertising misleads automobile donors about both the relationship between Wheels for Wishes and the Make-a-Wish Foundation and the tax advantages accruing to those who donate their cars. Also interesting are the financial and governance relationships between Wheels for Wishes and two for-profit companies that are its principal suppliers, consuming much of Wheels for Wishes’ budget. The article and the report linked therein may be useful to initiate a classroom discussion about the ethics of, and ethical abuses in and by, not-for-profit organizations. >>>

LINK: Report: “Wheels For Wishes” Charity Misled Donors About Make-A-Wish Donations (by Chris Morran for Consumerist)

Car Donation Foundation, more popularly known as “Wheels for Wishes,” is the nation’s largest auto donation charity. Every year, it takes in millions of dollars from donated cars for the supposed purpose of benefiting local chapters of the Make-A-Wish Foundation. But Minnesota Attorney General Lori Swanson says the charity has been misleading donors about its connections to Make-A-Wish and about how much money that organization was getting from the donated vehicles.

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