Consumer Alert: The one question you should ask before donating to a charity
ROCHESTER, N.Y. – Monday’s Consumer Alert takes a look at smart giving. The FTC is suing what it calls a sham charity for taking millions and giving away very little. This charity was supposed to be supporting cancer patients. The FTC says for every dollar Cancer Recovery Foundation International raised, only a penny went toward the cause. The rest lined the pockets of executives and fundraisers.
Cancer Recovery Foundation International runs a number of what the FTC calls scams. One of them is the Women’s Cancer Fund. The legal complaint is shocking.
It says out of $18.2 million dollars raised, only about $194,800 actually helped patients, roughly one percent. Meanwhile the founder, Gregory Anderson paid himself a salary of more than $775,000. Gregory authored a number of books that claim he survived cancer through positive thinking and prayer.
This may be familiar to viewers in Rochester. You may remember News10NBC investigated a charity called the United Breast Cancer Foundation in 2022 after getting viewer complaints about solicitors standing outside a store in Pittsford.
Deanna Dewberry approached the solicitors and asked how much of each dollar given actually went toward their mission. A young man answered 86 percent. After asking several times, the young man admitted that he worked for a professional fundraising organization.
But when I pulled the organization’s 990, the mandatory form charities must file with the IRS, it showed the non-profit hired five for profit fundraisers that raised more than $2.6 million in 2021. But, the fundraisers kept most of the money, giving the foundation only $6.5 million, about 30 percent.
So, if a telemarketer calls you, it’s likely a for-profit fundraiser. The most important question to always ask is the following: How much of every dollar raised goes toward the mission? Then hang up and check for yourself. Here are some charity watchdogs that will help your research – Charity Watch, Charity Navigator, and GuideStar.