When Scamming Becomes a Normal Business Practice!!

Kars4Kids has been operating for years, preying on the goodwill of Canadians and Americans alike. This program, which claims to raise funds for underprivileged children, has been secretly directing funds to Israel and Orthodox Jewish causes through its sister company, Oorah, primarily based in New York and New Jersey.

For over two decades, the charity has run a popular advertisement featuring a catchy jingle sung by children, urging viewers to donate their old vehicles to the program.

It wasn’t until February 2021 that a 70+-year-old California cabinetmaker, Bruce Puterbaugh, filed a lawsuit against the organization after donating his 2001 Volvo XC, valued at $250 US. He assumed the proceeds would help “underprivileged kids from all over the U.S.” Instead, he discovered that Kars4Kids mainly allocated its funds to Orthodox Jewish programs linked to Oorah, with some resources directed toward Israel.

This revelation initiated a court case against Kars4Kids in California’s Orange County Superior Court. On May 8, 2024, the court ruled that the charity must cease airing its advertisements until it provides clear disclosures regarding how donations are utilized.

Judge Gassia Apkarian’s ruling highlighted the misleading nature of Kars4Kids’ promotional materials. She noted that the charity’s jingles and ads misled donors by failing to disclose their religious affiliations and the true beneficiaries of their contributions. Her remark, “When a charity generates millions annually through a ‘jingle’ that conceals its primary religious and geographic focus, it creates an unfair playing field for local California charities that are honest about their missions,” encapsulates the legal and ethical concerns at stake.

As a result of the ruling, Kars4Kids is obligated to halt its advertising, protecting donor interests and ensuring transparency in the information it provides. The court also mandated that the advertisements clarify the charity’s religious connections and the true beneficiaries of the donations. Additionally, minors cannot appear in advertisements unless the proceeds directly benefit them.

For donors like Puterbaugh, the verdict offered a sense of validation. He expressed his frustration during the hearings, stating, “I feel taken advantage of by the ad and information that was not there.” This sentiment echoes the feelings of many donors who, unknowingly, contribute to organizations that are misaligned with their intentions.

Testimony during the case further supported the court’s decision. Esti Landau, the Chief Operating Officer of Kars4Kids, confirmed that most funds were used for Oorah’s programs, which focus on Jewish heritage and activities, rather than assisting local children, as the advertisements suggested.

Despite the ruling, Kars4Kids attempted to contest the findings. Their communications and PR director, Wendy Kirwan, claimed that the decision misrepresented the charity. “We believe this decision is deeply flawed, ignores the facts, and misapplies the law. It’s well known that we are a Jewish organization, and our website makes that abundantly clear,” she stated, voicing the organization’s dissatisfaction with the court’s approach.

While this argument may have resonated with some sympathizers of the Israeli cause, Kars4Kids’ long history of scrutiny across multiple states remains concerning.

This wasn’t Kars4Kids’ first controversy. The charity has faced investigations and fines in Pennsylvania, Oregon, and Minnesota, creating a pattern of scrutiny across several states. Consequently, CharityWatch included Kars4Kids on its list of “the worst charities in America” in 2024.

Charity Intelligence Canada awarded Kars4Kids a solitary one-star rating, indicating failures in multiple areas, particularly in reporting to donors about how their money was utilized. “It’s a fail when it comes to transparency,” stated Kate Bahen, the managing director. “You have better giving options.”

Wendy Kirwan of Kars4Kids did not respond when asked whether any proceeds raised in Canada help Canadian children. According to Canadian tax filings, the organization transferred $12.6 million to the US and Israel in the fiscal year ending May 31, 2025, the most recent data available, for projects such as the Texas Torah Institute and the Cincinnati Hebrew Day School.

Oorah’s CRA filings show $19 million in expenditures for the 2024-25 fiscal year, including $3.7 million for advertising and promotion.

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