
Vehicles for Change
Company that helps people donate their old cars for tax benefits.
Date | Investors | Amount | Round |
---|---|---|---|
$500k | Grant | ||
Total Funding | 000k |
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Vehicles for Change (VFC) operates as a social enterprise focused on breaking generational poverty by providing transportation and technical training. Founded in April 1999 by Martin Schwartz with an initial $30,000 grant, the organization began by awarding five cars per month in Carroll County, Maryland. Schwartz, who holds degrees in accounting and information systems, transitioned from a career in auditing to coaching and college development, where his passion for community impact led him to establish VFC. His entrepreneurial background includes a prior nonprofit, Cars for Careers, which served as a precursor to VFC's model.
The core of VFC's operation is its car award program. The organization accepts public donations of used vehicles, refurbishes them, and provides them to low-income families referred by partner social service agencies. Recipients secure these vehicles through low-interest loans, typically around $950, which helps them build credit. This model has a demonstrated impact, with 75% of recipient families obtaining better jobs or increasing their annual earnings by an average of $7,000. Since its inception, VFC has awarded over 8,000 cars, impacting more than 26,000 individuals across Maryland, Virginia, Michigan, and the Washington D.C. area.
A significant expansion of VFC's mission occurred in 2015 with the launch of the Full Circle Auto Repair and Training Center. This initiative provides paid internships and automotive mechanic training to individuals with barriers to employment, particularly those recently released from prison. Interns gain hands-on experience by repairing the donated vehicles, which are then either awarded to families or sold to the public. The program boasts a high success rate, with 100% of graduates finding employment in the automotive industry and a recidivism rate below 5%. To further enhance its training capabilities, VFC developed a virtual reality (VFC-VR) auto mechanic training module in 2023, a move praised by the National Auto Dealers Association.
VFC's business model is a hybrid of nonprofit and for-profit activities. Revenue is generated from several streams: grant funding from foundations and government entities, proceeds from the low-interest loans on awarded cars, and income from its social enterprises. These enterprises include Full Circle's public auto repair shops and a used car lot named Freedom Wheels, which sells donated vehicles not suitable for the award program to the general public, with profits supporting VFC's mission.
Keywords: car ownership program, workforce development, prisoner reentry, automotive training, social enterprise, poverty alleviation, nonprofit, vehicle donation, auto repair, financial independence, job access, transportation solutions, technical skills, community development, ex-offender training, Maryland, Virginia, Michigan, virtual reality training, ASE certification, low-income families, economic mobility, Full Circle Auto Repair