
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comCounsel
212-286-0747 dbrecher@sh-law.comAccording to the complaint, the organizations bilked donors out of $187 million from 2008 through 2012. The FTC alleges that the contributions were largely used to fund the lavish lifestyles of the charities’ leaders, while only three percent were used to provide services to cancer patients. “[D]onated funds were used to pay for vehicles, personal consumer goods, college tuition, gym memberships, Jet Ski outings, dating website subscriptions, luxury cruises, and tickets to concerts and professional sporting events,” the complaint says. The companies face significant fines, and two have already shuttered their doors.
Unfortunately, scams involving charities are relatively common. While charitable organizations are required to file reports with the Internal Revenue Service, the nonprofit sector largely operates under very loose oversight. There is no regulator like the Securities and Exchange Commission looking over their shoulders, and no investors to hold them accountable.
Even charities that are not outright scams may still not be using your contribution to further the mission of the organization. In many cases, the actual percentage of your donation that is actually devoted to the charity’s mission can vary greatly.
As with any investment opportunity, it is wise to conduct some due diligence prior to making a charitable donation. CharityWatch provides a list of top-rated charities, which spend 75 percent or more of their budgets on programs, spend 25 percent or less to raise public support, do not hold excessive assets in reserve and receive “open-book” recognition for disclosing basic financial information and documents.
As highlighted by Daniel Borochoff, president of CharityWatch, “Spending just a little time on research can exponentially increase the good works accomplished by a donation.”
In addition to verifying how your money will be used, other tips for making the most of your donation dollars include obtaining detailed information about the charity’s endeavors via an annual report, maintaining written records of your donations, and keeping an eye out for frauds that capitalize on recent disasters, such as the recent earthquake in Nepal.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!