Cash For Clunkers Programs Success Starting To Take A Toll On Charities

The popular "cash-for-clunkers" program is boosting U.S. auto sales and manufacturing but is also slashing donations to charities that rely on gifts of cars to fund social programs, charity officials say.

Volunteers of America and other charities that receive tens of thousands of cars each year said such donations have quickly fallen up to 12 percent -- and fear a 25 percent drop eventually, or over $100 million -- as owners rush to trade gas guzzlers for new fuel-efficient models while federal rebates last.

"We started seeing it right away in July" when the program began, said Jim Hartman, vice president of vehicle donations at Volunteers of America, a nationwide charity. "It varies by market, but there's been an 11 to 12 percent drop compared with last year."