Kars-4-WHO

We have probably all heard the jingle on the radio for the charity Kars-4-Kids, which claims to use car donations towards rehabilitation for children in need. Recently, however, attorneys-general offices in Pennsylvania and Oregon have found that the charity isn’t all it claims. According to tax returns, all funds raised by the organization have been funneled to a group which promotes the education of children in Jewish heritage. The ad also claims to give free vacations for those who do donate their cars. These vacations have turned out to be a ploy for timeshare opportunities.

Given that regulations on charities are different state-by-state, is this simply an issue of caveat emptor? Or, on the other hand, should the state get involved to protect those who might want to donate to charities?