US charity exposed for funneling millions to programs in ‘Israel’

Kars4Kids, a US-based nonprofit known for its long-running radio and television commercials urging donors to contribute used vehicles, has come under legal and public examination.

For over two decades, the organization has promoted its mission as supporting low-income children through educational and mentorship programs.

However, court findings and investigations reveal that a substantial portion of its funds supports specific religious initiatives rather than broad charitable aid for underprivileged youth.

According to recent court testimony and documents, Kars4Kids funnels approximately $45 million annually to Oorah, its affiliated Orthodox Jewish nonprofit organization.

Oorah utilizes these resources for programs including summer camps in the New York and New Jersey areas, mentorship initiatives, and gap-year trips to ‘Israel’ for 17- and 18-year-olds.

The charity also directed significant sums toward property acquisition in ‘Israel’, including $16.5 million for a building to expand its presence there.

A California judge ruled on May 8 that Kars4Kids violated the state's false advertising and unfair competition laws.

Orange County Superior Court Judge Gassia Apkarian determined that the organization's advertisements, featuring its memorable jingle and images of young children, were misleading by omission.

They failed to disclose the primary religious focus, the age range of primary beneficiaries, and the geographic emphasis on programs outside California, despite generating substantial revenue from the state.

The ruling stemmed from a lawsuit filed by donor Bruce Puterbaugh, who stated he would not have contributed had he known the funds primarily supported Orthodox Jewish outreach rather than general aid for needy children nationwide.

The court ordered Kars4Kids to cease its current advertisements in California unless they include clear disclosures about the organization's religious affiliation, program locations, and beneficiary details.

Kars4Kids has described the decision as flawed and intends to appeal.

Kars4Kids, based in Lakewood, New Jersey, operates as a Jewish 501(c)(3) organization and maintains close operational ties with Oorah.

While it reports providing millions in support for youth programs, critics and prior settlements in other states highlight concerns over transparency regarding its religious mission and allocation of donations.

The organization has faced similar advertising-related investigations and fines in the past.