The organization has been criticized for inadequately disclosing its Jewish educational work.[44][45] In 2009, Joy for Our Youth paid $65,000 in fines in Pennsylvania;[46] while Kars4Kids paid $65,000 in fines in Oregon[47] in settlements reached with the respective state attorneys general as a result of their contention that the organization had to state clearly that the beneficiaries were of a "certain religious affiliation." In Oregon, the attorney general added that Kars4Kids failed to disclose that its offer of a "free vacation" for vehicle donors was designed to recruit people to attend timeshare presentations.[47]

In 2017, the Minnesota Attorney General conducted a compliance review and submitted a 300-page report to the Internal Revenue Service. The report found that 44% of funds raised by Kars4Kids went to program expenses, and most of that money had gone to its sister organization Oorah, whose concentration in New York and New Jersey meant only one Minnesota child was believed to have benefited from one of its programs in the years 2012–2014. The report also mentioned the charity had lost money in real estate investments in the financial crisis of 2008 and may have been a victim of losses from a Ponzi scheme.[48