Church Executive Web Exclusive

By Ronald E. Keener

The Cash for Clunkers program that is invigorating the nation’s economy is driving the cars ministries of some churches into the ditch.

“This program has had a very negative impact on our ministry,” says Warren Young, with the cars ministry of mega Willow Creek Community Church in South Barrington, IL. [www.Cars4Moms.org] The church has had a program for 20 years in giving new life to old, donated cars that are then given to single moms and others who need reliable transportation.

Young says that they will give away more than 100 refurbished cars this year, but “the day the [clunkers] program kicked off it was like our phone lines had been pulled.”

“My research shows that other similar programs are being affected,” Young says, “and the worse is probably yet to come now that another $2 billion is expected to come into the program.” He says that he hears of programs in other states that have taken a big hit too.

“I have just come from a meeting where we are looking at what we need to do if this trend continues,” he says. “It doesn’t look good.”

Providing workable cars

There are a number of churches across the country that have ministered to those in need by giving them a workable car they would not otherwise be able to afford. For single mothers with young kids or seniors who can’t afford a better car, it can make the difference in surviving economically.

Sherry Loschi, outreach coordinator at Ginghamsburg Church in Tipp City, OH, reports that “we currently have more than 35 families on our waiting list, who are without transportation and are waiting for a car to be donated on their behalf.

“Since the Cash for Clunkers program we have not received any new donations of used cars to our program.

“I wish there was some way to get cars from the lots that are being traded in and are in good working condition,” she says. “What a blessing it would be to these single moms who are currently without transportation at all.

“The families we serve are in rural areas where there is no public transportation available and jobs are scarce within walking distance. This is a true need to these parents and retirees who have no way to get around accept by the mercy of their neighbors.”

The church’s CAR program – Christian Auto Redemption – began in 1995 when a member began fixing cars in his garage to give to persons in need of reliable transportation. Since then 580 cars have been given to single parents and persons in need, and this year alone they will provide 35 cars. Up to 30 volunteers work in such phases of the ministry as classes, car repair, maintenance, case management, etc.

Dealership makes referrals

The ministry has referrals from a local Ford dealership of people who desire to make a donation and plans to broaden that part of the program through other local car dealerships. The church’s ministry is a 501(c)3 charitable organization and thus can offer a tax receipt for their donation.

Willow Creek’s Young says that in the 20 years of their cars program “we have never seen the market swings like we are experiencing it now. We are visiting different auctions and trying more on eBay than we ever have before.”

Willow Creek’s program is run as a self-supporting ministry and is required to balance their budget, but Young says “more and more we are being redefined as a ‘compassion’ ministry which enables us to give out the same amount of benevolence even if it means the church has to underwrite the shortfall.”

Competition is likely to also come from the government-certified salvage yards that purchase and process the clunkers, looking for leftover car parts and scrap metal. A report by Parker Leavitt in the August 12 issue of Arizona Republic says, “On average, salvage yards pay dealers $100 to $500 for the cars. They can make several times that by selling the recycled car parts to body and repair shops. The parts can fetch as little as $25 for an alternator or as much as $400 for a transmission.”

Willow Creek’s CARS program, in addition to refurbishing used cars, last year did 192 repairs to cars. Young says his program has 85 to 90 volunteers who form 11 teams “that work their magic.”

One ministry not yet hurt

Another Chicago-area church has been holding its own in donated cars. Bruce Harnew who directs the car ministry at Orland Park Christian Reformed Church in Orland Park, IL, says “so far we have been seeing a slight increase in car donation.

“Seems like people have made a decision to get a new car and if their existing car doesn’t quality for Cash for Clunkers—because the rules are so confusing—they find a meaningful program to donate their old car and still buy the new car for the best tax write-off possible.

Since his ministry began in year 2000, the church has given out 399 cars and this year will provide 70 cars. Half the recipients are single moms, a quarter of them go to a husband and wife with children, and another quarter to retired persons on a fixed income.

Harnew does note that in the past two years the typical repair of a donated car has doubled to the present $1,000. “People are hanging on to good used cars and only donating if the car is in really bad shape,” he says.

“It would be great if the government could find a way to release Cash for Clunkers cars, before destroying the engines, to those ministries that are giving cars to needy individuals so they can get to their jobs, church, grocery stores, and doctor appointments, while they strive to become self-sufficient once again,” Harnew says.

A ministry executive says much the same thing about finding a place for the clunkers traded in at dealerships. Shocked by the sight of hundreds of late model, drivable automobiles lined up for eventual destruction under the Cash for Clunkers program, a homeless mission in northern California is calling for a “Clemency for Clunkers” program.

“The government’s Cash for Clunkers program has pronounced a death sentence on cars that used to be donated to our used car lot,” said Ron Marlette, executive director of Fairfield, CA-based Mission Solano. “This not only takes away the sales profits that help support our feeding and housing of the homeless, it eliminates a whole class of cars that would have been purchased by those who can not afford more.”

Marlette says that the federal Cash for Clunkers program could result in 750,000 vehicles, 25 years old or newer, being rendered inoperable and junked. Many of these vehicles previously found their way to charitable resale lots like that operated by Mission Solano. But the government’s generous buy back provisions, as much as $4,500 per vehicle, can not be matched by charities that traditionally provide no more than a tax write off.

Marlette is calling for a “Clemency for Clunkers” program. “Give these cars a second chance at life on the streets, driven by those who can’t afford a new car,” he says.

“Once these cars are out from under the threat of destruction, we should have a national debate on how to reintroduce these cars to society. But I would hope that some of these cars end up at existing charity car lots that have been harmed by the Cash for Clunkers program.”

Mission Solano provides food, shelter, counseling and training for the most vulnerable residents in Solano County.