Minnesota says a car donation charity copied another's name. It must now dissolve.

Minnesota Attorney General Keith Ellison on Wednesday, October 7, filed an Assurance of Discontinuance in Ramsey County District Court that requires Auto Tech Donations, Inc. to dissolve. It permanently bars the nonprofit's president, Prince Singh, from incorporating nonprofits in the future and from serving as a director or officer of one, the attorney general's office said. Under the settlement, the ban covers that conduct in Minnesota.

According to the settlement, Singh incorporated the nonprofit in February 2021 and is its only officer and director. He is also the manager of Auto Tech Sales and Leasing, a used-car dealership in Saint Paul.

What the state alleges

The attorney general's office alleges that the nonprofit's website said it was an IRS-approved 501(c)(3) organization, asked for vehicle donations, and claimed the cars were refurbished and given to people referred by community agencies. It also alleges the group used a name, branding and website content similar to those of an unrelated nonprofit, so that donors were misled into believing they were giving to that organization. The settlement notes that Auto Technical Incorporated, a Minnesota nonprofit incorporated in 1992, is a separate organization not affiliated with Singh.

The office says it identified donated vehicles, worth $2,700 in total, that Singh's dealership resold for his personal benefit. It also found that the charity had no functioning board of directors, held no board meetings and kept no proper records, with Singh alone acting as the board. Singh and the nonprofit neither admit nor deny the allegations.

What the settlement requires

• Restitution. Singh must pay $2,700 within 30 days of signing. The office may distribute the money to donors who were harmed.
• A stayed penalty. He is liable for an additional $50,000 civil penalty if the court finds he violated the agreement.
• Shutdown. The nonprofit may not solicit or accept contributions, including used cars, in Minnesota or from Minnesota residents. It must take down its website and social media accounts and begin dissolving within 30 days of court approval. Any remaining assets must go to a 501(c)(3) with a similar mission.

"The vast majority of Minnesota's nonprofit sector plays by the rules and does tremendous work for our state. The dissolution of Auto Tech Donations should send a message to those who take advantage of Minnesotans' generosity: We won't stand for it," Ellison said.

Before you donate a car

In our view, the dollar figure is small and the lesson is not. A lookalike name is easy to miss when a donor is trying to get rid of a car quickly.

1. Check the exact legal name. Look up the organization in the IRS Tax Exempt Organization Search before you sign over a title, and compare it with the name on the website.
2. Ask what happens to the car. A charity should be able to say whether it will use the vehicle in a program or sell it.
3. Look for a real board. A nonprofit run by one person acting alone is the problem a board exists to prevent.