Wise Giving Wednesday: Kars4Kids Ruling Highlights the Need for Clear Charity Appeals

A catchy appeal can open the door to giving, but clear charity appeals are what build lasting donor trust.

What the Kars4Kids Ruling Found

On May 8, 2026, the Superior Court of California ruled against Kars4Kids, a Lakewood, NJ-based charity for making untrue or misleading statements in their advertising materials.

The ruling in the case, Puterbaugh vs. Oorah, states that the organization “should have known through reasonable care, that the statements were untrue or misleading.”

Kars4Kids was found in violation of section 17500 of California’s Business and Professions Code, as well as section 17200 of the Unfair Competition Law (UCL).

Why Clear Charity Appeals Matter

The case involved the donation of a 2001 Volvo, valued at $250, to Kars4Kids. The Plaintiff donated the non-operational vehicle after his wife demanded the car be moved before a social event.

He testified that his decision to give to Kars4Kids was influenced by the Kars4Kids jingle:

“1-877-Kars4Kids, K-A-R-S Kars for Kids, 1-877-Kars4Kids, Donate your car today.”

Based on these messages, the Plaintiff believed that his car donation would benefit underprivileged children in California, but later learned the donation supported a religious organization based in Lakewood, New Jersey.

The Plaintiff noted that the “jingle” contained no religious affiliation or indication that donations would be limited by geography, religion, or ethnicity. He also indicated that he had not visited the organization’s website, as he was “not a computer person.”

Kars4Kids’ Chief Operations Officer, Esti Landau, acknowledged the jingle, which has aired for two decades, did not provide specific details about the charity’s activities, which support summer camps in New York and New Jersey, and other religious programs serving youth and adults.

Approximately 25% of Kars4Kids’ revenue comes from donations made in California. Landau testified that Kars4Kids has no programs in California and that the organization’s primary purpose is not to help economically disadvantaged children.

The ruling in the case requires Kars4Kids to refund the $250 within 30 days and cease all non-compliant broadcasts within the same timeframe. You can find Kars4Kids post-trial statement here.

BBB Wise Giving Alliance has a current nondisclosure report on Kars4Kids, as the organization has not responded to our requests for information.

Fundraising Appeal Guidelines for Charities

Below are some guidelines to keep in mind when developing charity communication materials:

• Provide Clear Program Descriptions: Clearly describe the programs or services for which you are seeking contributions. Even a brief explanation can help potential donors better understand your work and how and where their support will be used.

• Ensure Accuracy and Truthfulness: Make sure all facts and figures in your appeals are accurate, including program accomplishments, financial information, and statistics about the issues you address. Avoid creating any misleading impression. If you make claims about your program’s effectiveness or impact, ensure you have sufficient documentation to back them up.

• Use Stories and Photos Responsibly: If you feature a story or photo about a specific individual or event, verify that it accurately reflects the situation described. If photos or stories are more than three years old, identify their age so readers don’t assume they represent current situations. For those interested in more guidance, see our previous post about photos and images in fundraising appeals.

• Establish a Review Process: Problems with fundraising appeals can arise when fundraising operates in isolation from the rest of the organization. To help prevent this, charities should establish a regular review process that involves key staff such as legal and finance personnel, use internal guidelines or checklists to avoid recurring issues, and promote a culture of transparency and information-sharing across the organization.

• Update Communication Materials: Review and update website content and annual reports regularly to ensure they provide a current, clear, and accurate picture of the charity’s mission, programs, and impact. Donors increasingly rely on these materials when evaluating transparency and trustworthiness.

Tips for Donors Reviewing Charity Appeals

The following tips can help donors assess the accuracy and transparency of charity appeals and materials:

• Understand What You are Supporting: Look for clear descriptions of the charity’s programs and services, including how and where donations will be used.

• Check for Accuracy: Review appeals carefully to ensure claims about impact, accomplishments, and finances appear accurate and well supported.

• Review Stories and Images Carefully: Consider whether stories and photos accurately reflect the individuals, events, or situations described. If images or stories are more than three years old, they should be identified as such. If a photo or appeal appears to be AI-generated, you may also want to look for disclosure or ask the charity for additional information.

• Review Website and Annual Reports: Check the charity’s website and annual reports for current, clear, and consistent information.

• Ask Questions: If you have questions about a charity’s fundraising appeals, programs, or how donations are used, contact the charity directly for clarification. 

Give With Confidence

Before making a donation, take a moment to look beyond the appeal. Visit Give.org to see whether the charity you’re considering meets the 20 BBB Standards for Charity Accountability and to better understand its transparency and accountability practices.