Four Cancer Charities Accused of Fraud, With Some Important Lessons

According to the New York Timesfour sizeable charities — the Cancer Fund of America, Cancer Support Services, Children’s Cancer Fund of America and the Breast Cancer Society — have been accused by the Federal Trade Commission and all fifty U.S. states of being controlled by the same small network of individuals who were enriching themselves with millions in donations.

According to the complaint, [James] Reynolds devised the fund-raising scheme in 1987 and recruited his son, friends and members of his church congregation to participate in the years that followed. The F.T.C.’s finding of $187 million in misspent donations reflects the charities’ activity from 2008 to 2012. In that time, the charities spent less than 3 percent of donations on cancer patients.

“The defendants’ egregious scheme effectively deprived legitimate cancer charities and cancer patients of much-needed funds and support”, said Jessica Rich, director of the F.T.C.’s bureau of consumer protection.

The complaint also accuses the organizations of falsifying financial documents, reporting inflated revenues and “gifts in kind” they claimed to distribute internationally.

Aside from the sheer sordidness of this affair — enlisting loved ones and church members to embezzle funds meant to go to cancer victims — this it is vital reminder about the importance of being vigilant towards any and every charity you are interested in. No matter how admirable or convincing the cause, please do your utmost to fact-check rigorously. Plenty of good and honest organizations doing effective work lack funding.

And while it is true that these organizations have not been formally convicted, the details of the case, and some prior controversies, do not look encouraging.

In any case, checkout charity reviewers like Charity NavigatorGive Well, and Charity Watch to see if any organizations you are interested in make the cut. Feel free to share your own trustworthy watchdogs.

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