NEWARK
- Nevada-based Vehicle Donation Processing
Center (VDPC) will pay New Jersey $33,876.50
and register with the Attorney General as
an independent paid fund raiser, under an
agreement announced today by Attorney General
Stuart Rabner and Division of Consumer Affairs
Acting Director Stephen B. Nolan.
Over
the past several years, VDPC solicited New
Jersey residents to donate their motor vehicles
to charitable organizations through newspaper
ads and its web site. Some of the charitable
organizations are not registered with the
state as legally required.
VDPC also coordinated the sale of donated
motor vehicles using unregistered independent
paid fund raisers. VDPC typically received
a large portion of sales proceeds as compensation
and then the charitable organization received
the remaining funds.
“Vehicle donation appeals have surged
in recent years and this settlement highlights
the need for consumers to be extremely wary
before handing over their titles and keys,”
Attorney General Rabner said. “Consumers
have the right to ask how much of their
donation actually goes to the charity and
if the fund raiser and charity are registered
to do business in New Jersey.”
The
consent order resolves multiple violations
of the Charitable Registration and Investigation
Act of 1994 (ACRIA) and the state's Charities
Regulations. The order also requires VDPC
to register with the Attorney General as
a charitable organization if, at any time,
it operates as such, and before it solicits
funds in any way. VDPC also is prohibited
from participating in any solicitation efforts
with any charitable organization that is
not registered with the state.
AEvery
charitable organization and fund raiser
doing business in New Jersey is obligated
to know and follow the rules regarding registration,"
said Acting Director Nolan. "The potential
for abuse in the area of charitable solicitations
is great."
Deputy Attorney General Brian M. Brennan
represented the state in the VDPC matter.
The
public can obtain information about charitable
organizations and paid fund raisers who
are registered to operate in New Jersey
by contacting Consumer Affairs' Charitable
Registration Unit at 973-504-6215
or by going to the unit's web site, www.NJConsumerAffairs.gov/ocp.htm#charity.
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