Friday, April 8, 2016

The Sugarcoating Of Cancer Charity Fraud

by Gary Snyder

He took $75 million from donors and the punishment he got was that he can no longer do the same because they took away his keys to the vault. The two bogus charities-Cancer Support Services and Cancer Fund of America-he set up were closed and he is barred from making money through charity fund-raising or working in the not-for-profit world. (Freep)

The reality is that he remains a very wealthy man and the amount he took according to the “FTC and our state enforcement partners… have ended a pernicious charity fraud that siphoned hundreds of millions of dollars away from well-meaning consumers, legitimate charities, and people with cancer who needed the services the defendants. “ seems much greater than it appeared.

“Today’s agreement helps ensure that the charitable donations of Michigan residents are used as intended by their donors and for the good of society,” according to Michigan Attorney General Bill Schuette.

This is nonsense. These are public relations gambits to cover the magnitude of the problem.

The fraud uncovered from charities and taxpayers is enormous and it is a sliver of the actual amount. Studies suggest that it amounts to more that $40 billion.

On the day of the press conference, public documents indicated that…
1. a charitable foundation was defrauded out of $75 million;
2. 12 Detroit principals, an administrator and a vendor were charged in a $1-2.7 million kickback scheme;
3. a youth baseball league charity was ripped off for $22,000;
4. millions of dollars were taken from an animal cruelty charity;
5. a Kentucky church was hit for $274,000;
6. a township Supervisor is accused of embezzling from the Fraternal Order of the Eagles;
7. a treasurer of a youth football league is accused of taking $204,000.

This is a a typical day is the nonprofit world. 

As far as restitution goes, the likelihood is minimal.  Restitution is seldom discharged. In some instances, legal authorities do no even seek it.

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,, 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,, CORP! Magazine, Crain’s Michigan Nonprofit,, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner,, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today,, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization),, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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