Wednesday, July 8, 2015

This Cancer Charity Fraud Is A Family Affair

by Gary Snyder

The Tennessee secretary of state’s office is investigating a cancer nonprofit with family ties to four other charities that were sued in May by the federal government on allegations they bilked donors of $187 million..
The group being investigated is the American Association for Cancer Support Inc., of Knoxville, TN.
Two of the four charities mentioned in the suit—one of the largest-ever involving a charity—have agreed to shut down. The American Association for Cancer Support wasn’t named in the suit and continues to operate.

The FTC suit states that family members spent most of the money they took in through their charities on telemarketers, vacations, cars, sporting events and high-paying jobs for family and friends. It said those who ran the organizations “engaged in a massive, nationwide fraud.”
The $4.9 million charity gave away about $35,000 worth of supplies to American cancer treatment centers and about $98,000 worth of goods to U.S. individuals in 2014. None of the gifts were in cash. The group raised $1.9 million in direct donations from the public—but paid $1.7 million to for-profit telemarketing firms to get the money.


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)
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