Kars4Kids

CharityWatch's rating of Kars 4 Kids includes the financial activities of the legal entities consolidated in its audited financial statements for the organization's fiscal year ended December 31, 2025. According to Note 1 of the consolidated audit, these include:

"...the accounts of Kars 4 Kids Inc. and its wholly owned subsidiaries Carsandmore2001 LLC, K4K LTD, Kars Resources LTD, K4K LLC, and K4K Media LLC. Carsandmore2001 LLC sells donated vehicles outside of the organization’s usual distribution channels. K4K LTD and Kars Resources LTD provide back-office services to the Organization in Israel. K4K LLC holds investments in real estate and real estate donations. K4K Media LLC is an in-house advertising agency for the Organization. All material intercompany balances and transactions have been eliminated in consolidation." 

According to the Kars4Kids consolidated audit of December 31, 2025 (Note 11, In Kind Contributions):

Kars4Kids received in-kind contributions during fiscal 2025 on which it placed a total value of $94,017,108. Of this amount, $82,440,832 and $9,350,851 was attributed to "Cars" and "Real estate," respectively. These figures represent approximately 87% and 10% of Total Revenues per the audited Statement of Activities and Changes in Net Assets, respectively. 

According to the Kars4Kids consolidated audit of December 31, 2025 (Note 14, Contingencies):

"On May 8, 2026, the Superior Court of California, County of Orange, issued an order and statement of decision in a civil action relating to alleged misleading omissions in the Kars4Kids vehicle donation advertising campaign.

The Court ordered the Organization to pay restitution of $250 to the plaintiff within 30 days and permanently enjoined the Organization from broadcasting the Kars4Kids jingle, or any variation thereof, in California unless the advertisement includes certain audible disclosures regarding the Organization’s religious affiliation, the geographic location of its primary beneficiaries, and the age range of the beneficiaries. The Court also awarded costs and reasonable attorneys’ fees to the plaintiff. Judgment is to be entered unless timely objections are filed in accordance with the applicable court rules. The Organization disagrees with the ruling and intends to appeal and vigorously defend its position. 

A separate claim with similar allegations has been brought in the United States District Court for the Northern District of California. The plaintiffs seek to represent a nationwide class of persons allegedly exposed to the advertising. The Organization believes the allegations are without merit and intends to vigorously defend against them."

According to the Kars4Kids consolidated audit of December 31, 2025 (Note 10, Related Party Transactions):

"The Organization had significant related party transactions during the year ended December 31, 2025, including grants to an affiliated nonprofit organization under common management totaling $37,902,428, of which $3,500,000 remained in accounts payable at year-end. The Organization also received donated services from related organizations totaling $1,558,299 during the year. The Organization and its affiliates share premises, and certain overhead costs are allocated between them based on usage. In addition, a member of the Board serves as Chief Executive Officer of a company in which the related organization that received the grants holds an equity investment."

According to the Kars 4 Kids 2025 IRS Tax Form 990, in 2025 Kars 4 Kids made a cash grant in the amount of $35,645,882 to its related public charity, Oorah (tax ID#22-3746051. According to Oorah's IRS tax Form 990 of the same year, Oorah's mission is stated as follows:

"Oorah is an outreach organization whose mission is to develop Jewish children and families by giving them opportunities to connect with their rich heritage and traditions. Oorah takes a holistic approach to its mission, providing a strong, all-encompassing network of personal guidance and educational resources to develop youth into well-balanced, productive and engaged members of the community. Oorah's year-round programs aim to support children in every aspect of their life and environment in order to have a maximum impact."

According to Oorah's 2025 IRS tax Form 990, Schedule F, the organization made cash grants to the "Middle East and North Africa" totaling $8,635,891 that year. The purpose of the grant is reported as "to promote religious education." 

According to the Kars 4 Kids tax filing of December 31, 2025, IRS Form 990, Schedule L, Part IV & V, Business Transactions Involving Interested Persons & Supplemental Information:

Two transactions are reported during fiscal 2025:

Transaction 1

The "Name of interested person" is reported as "Yisachar B Broyde."

The "Relationship between interested person and the organization" is reported as "Family member of Joseph Weinberger[,] Trustee."

The "Amount of transaction" is reported as "$98,200."

The "Description of transaction" is reported as "Payroll."

Transaction 2

The "Name of interested person" is reported as "Ford Medical."

The "Relationship between interested person and the organization" is reported as "Akiva Goldberger, Board Member, is the Chief Executive Officer."

The "Amount of transaction" is reported as "$3,929,647."

The "Description of transaction" is reported as "Oorah, a related organization, holds an equity investment in Ford Medical LLC with a fair market value of $1,929,647 at year end and a note receivable from Ford Medical LLC with an original principal amount of $2,000,000. Akiva Goldberger, a member of Kars 4 Kids' board, serves as Chief Executive Officer of Ford Medical LLC."

According to the Kars4Kids consolidated audit of December 31, 2025 (Note 13, Concentrations of Credit Risk, Accounts Receivable and Donated Goods):

"The Organization’s primary source of revenue is donations of used vehicles, which are sold at auctions by independent car dealers. At December 31, 2025, one car dealer accounted for approximately 68% of total accounts receivable and 53% of total income."