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Avoiding Scam Charities

HandelontheLaw.com Staff Writer

Friday, May 29, 2015



Avoiding Scam Charities
SCAM Alert!

On May 19, 2015 the Federal Trade Commission (FTC), all 50 states and the District of Columbia filed suit against 4 bogus cancer charities: the Breast Cancer Society; Cancer Fund of America; Cancer Support Services; and Children’s Cancer Fund of America. The suit was also brought against some people behind these false charities, including: James Reynolds, Sr., James Reynolds II, Kyle Effler; and Rose Perkins.

The suit was filed in U.S. District Court for the District of Arizona and alleges that these phony charities collected more than $187 million by outright lying to donors about their organizations’ assistance to cancer patients and their families. Rather than assisting patients and their families through cash grants, medicine purchases, grocery purchases, transportation to and from treatments, counseling and hospice care, the fake charities spent more than 85% of donations on “charity” officers, their families, friends and paid fundraisers.

James Reynolds II, Kyle Effler and Rose Perkins have already reached a settlement whereby:
- they are forever banned from fundraising, charity management, and oversight of charitable assets;
- Children’s Cancer Fund of America and Breast Cancer Society will be dissolved.

James Reynolds, Sr., has reached no such agreement as of May 19, 2015; therefore the litigation continues against him, Cancer Fund of America and Cancer Support Services.

How does a person who wants to help cancer sufferers and their families but does not want to fund a scammer’s yacht avoid phony charities?

First, confine your donations to charities you know and trust.

Secondly, if you are contacted by a charity with which you’re not familiar but are attracted to its message, WAIT. Ask for its contact information and say you will get back to them. If someone says he/she must have a donation within a very limited amount of time, refuse to donate.

Third, check out charities online. Even major charities might have complaints against them that dissuade you from donating. Run the name of the charity through Google, along with the words “complaint,” “scam,” “rip-off” and the like. You can also check out the charity through:
- “Wise Giving Alliance” here http://www.give.org/
- Charity Navigator here http://www.charitynavigator.org/
- Charity Watch here https://www.charitywatch.org/home
- GuideStar here GuideStar

Finally, if you suspect a phony charity, do us all a favor by filing a complaint with the FTC here https://www.ftccomplaintassistant.gov/#crnt&panel1-1


DO’S AND DON'TS

DO confine your donations to charities you know and trust.

DON’T donate to a charity on the spur of the moment.

DO ask for its contact information and say you will get back to them.

DO check out charities online:
- run the name of the charity through Google, along with the words “complaint,” “scam,” “rip-off” and the like.
- “Wise Giving Alliance” here http://www.give.org/
- Charity Navigator here http://www.charitynavigator.org/
- Charity Watch here https://www.charitywatch.org/home
- GuideStar here GuideStar

DO report a suspected phony charity to the FTC here https://www.ftccomplaintassistant.gov/#crnt&panel1-1

By Kathy Catanzarite


Source: Kathy Catanzarite - Handelonthelaw.com Staff Writer

Note from HandelontheLaw.com: This article is to be used as an educational guide only and should not be interpreted as a legal consultation. Readers of this article are advised to seek an attorney if a legal consultation is needed. Laws may vary by state and are subject to change, thus the accuracy of this information can not be guaranteed. Readers act on this information solely at their own risk. Neither the author, handelonthelaw.com, or any of its affiliates shall have any liability stemming from this article.





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