Nonprofit Fraud: Another Sandy Relief Charity Investigation

by Gary Snyder

A state investigation is under way into the financial dealings of a Sandy relief group that has raised $1 million while misleading donors about its tax-exempt status.

An Asbury Park Press investigation published Sunday raised questions about the group, the Hurricane Sandy Relief Foundation.

Among other findings, the Press found the HSRF wasn’t a 501(c)(3) entity, as it has claimed on its website, nor is it legally registered to raise funds in New Jersey. Its website also uses the name of the charity headed by New Jersey first lady Mary Pat Christie, the Hurricane Sandy New Jersey Relief Fund, though state law prohibits such practices.

In addition to investigating the HSRF group, the New Jersey Division of Consumer Affairs is alerting dozens of other unregistered Sandy relief groups that they need to comply with the state’s charities code.

Eric T. Kanefsky, acting director the state Division of Consumer Affairs, said Monday that the agency began looking into the group in December when the division’s charities registration unit spotted red flags on the HSRF website, www.sandyrelief.org.

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