Livestrong Tanking: Part 2

By Gary Snyder

Some fed up donors are planning on filing a lawsuit against Livestrong to get their money back, but their complaints go far beyond Lance Armstrong’s drug use.

Some fired up fundraisers have outlined a laundry list of reasons as to why the nonprofit should return their money, but there’s little mention of the founder’s fall from grace, CBS reports.

One disgruntled donor estimates that he’s given about $50,000 to the nonprofit and that he’s also encouraged friends and family to give an additional $15,000. He shared his slew of grievances with CBS, which includes the fact that he wasn’t aware that the nonprofit was phasing out its funding of cancer research projects. His primary complaint, though, was how Livestrong sold its name in 2008 for $2.5 million to a media company that now runs the for-profit site, Livestrong.com, which advertises health and fitness products, a move he and other experts say could confuse do-gooders looking to contribute to the organization.

Major credit card, clothing and food companies often license the names of charities to promote their products, according to Nonprofit Quarterly. “Cause marketing is not illegal, nor is it uncommon,” Jennifer Amanda Jones wrote in Nonprofit Quarterly in a piece about the Livestrong lawsuit.

"I gave you this money, and worked for you and asked other people for this money in good faith," Birdsong told CBS. "We were suckers. We got taken. That's the way sometimes we feel about it."

Some others  donors, in October, came forward and said that they felt duped by the mission and wanted their money back.

Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Charity Navigator, Vermont Public Radio, Miami Herald, National Public Radio (NPR), Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), “Betrayal”, (a movie), NBC (on Charity Fraud…TBD), FOX2, ABC Spotlight on the News, WWJ Radio, Marie Claire, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, Charity Navigator, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Accountants News, Newsweek.com, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, American Chronicle, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, Nonprofit Blog, National Coalition of Homeless Newsletter, Finance and Administration Roundtable Newsletter, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)