Problems at Feed the Children, one of the nations most recognized charities, have led to a crimial investigation. The states attorey general’s office is coducting a crimial investigation into possible violations of the law during Larry Jones tenure as president of Feed the Children, an assistant attorney general disclosed Monday in a legal filig. Formal allegations of misus of charity funds, which could end up being a criminal matter.
Charity fraud is the act of using deception to get money from people who believe they are making donations to charities. Often a person or a group of people will make material representations that they are a charity or part of a charity and ask prospective donors for contributions to the non-existent charity. Charity fraud not only includes fictitious charities but also deceitful business acts. Deceitful business acts include businesses accepting donations and not using the money for its intended purposes
A flyer in the mail, a phone call, a personalized email — everyone receives requests for donations in one form or another. Many legitimate charities use telemarketing, direct mail, email and online ads to ask for contributions. Unfortunately, scam artists also use these techniques to pocket your money. If someone asks for a donation, take your time and familiarize yourself with the charity:
Ask for the charity’s name, address, and phone number, and written information about its programs.
Ask whether the person contacting you is a professional fundraiser and how much of your contribution will go to fundraising costs.
Check the history of the organization with the office that regulates charities in your state. For a list of state offices, visit the National Association of State Charity Officials.
You should also know the warning signs of a scam:
High pressure pitches. Reject them: It’s okay to hang up.
A thank you for a pledge you don’t remember making. Be skeptical; scam artists will lie to get your money.
Requests for cash. Avoid giving cash donations.
Charities that offer to send a courier or overnight delivery service to collect your money.
Charities that guarantee sweepstakes winnings in exchange for a contribution.
Charities that spring up overnight, especially those that involve current events like natural disasters, or those that claim to be for police officers, veterans, or firefighters. They probably don’t have the infrastructure to get your donations to the affected area or people.
For more detailed information about charity donations, read Charitable Donations: Give or Take.
Law Offices of Matt Swain