Charity that allegedly gave just 1 cent of every $1 to cancer victims is sued for deceiving donors

[BumRushDaShow]

Source: CBS News

Updated on: March 22, 2024 / 8:57 AM EDT


The Women's Cancer Fund raised $18.3 million by vowing to help patients, telling donors that their money would help pay the living expenses of women going through treatment for the disease. But a new lawsuit from the FTC and 10 states allege that the bulk of the money instead went to pay the charity's president and for-profit fundraisers.

The lawsuit, filed on March 11 in federal court, alleges that the Women's Cancer Fund raised the money from 2017 to 2022 by making deceptive and misleading claims. In reality, the bulk of the donations went to the $775,139 salary of the charity's president, Gregory Anderson, and to pay for-profit fundraisers $15.55 million, as well as overhead expenses, the lawsuit alleges.

"[O]f the $18.25 million donated to the Women's Cancer Fund only $194,809 – roughly one percent – was spent directly on helping women with cancer," the lawsuit claims.

While charities incur overhead expenses, it's generally considered good practice to spend only a fraction of their budget on overhead, with CharityWatch giving its "highly efficient" rating to nonprofits that spend less than 25% on operating costs. The lawsuit alleges that donors who opened their wallets to give to the Women's Cancer Fund were deceived by the group's marketing efforts.

Read more: https://www.cbsnews.com/news/womens-cancer-fund-lawsuit-ftc-maryland-gregory-anderson/

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Link to FTC PRESS RELEASE - FTC, 10 States Take Action Against Operator of Sham Cancer Charity for Deceiving Donors

[ArkansasDemocrat1]

1. 1-99 ratio?

Shut those scammers down

[peppertree]

2. Sounds downright Trumpian

The only thing missing in this story, is a gold-framed portrait - and of course a gold toilet.

[SouthernDem4ever]

24. My first thought too

Is it a trump charity?

[KS Toronado]

28. No but they graduated from Trump University with straight As.

[DENVERPOPS]

9. Most Charities are a scam

A lot of people have realized they can pull this off, and start a charity and make tons of money for themselves and executives.

A few years back, I remember reading that the All Stars of Rip Off Charities that did this same thing were the tsunami of Breast Cancer Charities that had sprung up across the nation. I read that the FBI had decided to wage war on the TOP 600, yes, Top 600 Breast cancer charities that had sprung up where most of the money went to the Executives of the Charity......

There are websites that report on Charities that give the percent of money that is spent by the administration.

I personally check the report before donating any money every year.

I donate thousands every year to the "Food Bank of the Rockies" that has admin costs of about 3-4% and runs a huge organization serving the entire northern Colorado Front range.....

[PatrickforB]

13. Food Bank of the Rockies is great. Back in the JTPA summer youth days, we put crews of kids we were serving in

subsidized Work Experience positions there during summer. It's a really good operation.

[DENVERPOPS]

17. Yes it is

and they have a bunch of people who love to volunteer working there.

People who go to grocery stores and buy something to put in the store's collection bin should just donate the money to the Food Bank because the Food Bank can buy food at wholesale, and the grocery store doesn't get the markup on the food......

I know a few people that abuse the Food Bank, but there are always a few.......

[PatrickforB]

26. Yeah, there's always someone. But that's OK, because most are genuinely in need.

There are a bunch of charities that do really good work. Remember Daddy Bruce?

[DENVERPOPS]

29. I sure do...........

Like your name......mine too

[flying_wahini]

33. I used to donate occasionally while at the grocery store until I figured it was scammy.

Of course the grocery store writes it all off as a donation (with your dollars).

[ArkansasDemocrat1]

22. I ignore all the charities I see advertising on TV over and over

The costs to advertise as much as they do means they're NOT giving the money to the charity in any amount we'd accept as non-exploitative.

[Earth-shine]

30. It's funny how they all want the same amount - just $19 per month, just 61 cents a day.

[ArkansasDemocrat1]

35. Yep

They don't get a penny from me. In fact, I can't think of any ad on TV in the past year that's Influenced me to go somewhere or buy something.

[SouthernDem4ever]

25. My local food bank uses a fund raising company

So I know they are losing at least .50 or more of every dollar. I just send my check to them directly.

[COL Mustard]

16. I need a job like that

No, I don’t. Disgusting behavior.

[Fla Dem]

3. What disgusting people.

[Hekate]

4. Timely reminder to always check Charity Navigator before writing that check. Especially...

Especially if the word “Cancer” or “Woman” or “Child” shows up in their name.

Charity Navigator here
https://www.charitynavigator.org/

[SergeStorms]

8. I always check with them.....

before giving any charity a penny. I've been using their site for at least a decade, probably a lot more.

[DENVERPOPS]

10. Or Breast and Animal charities too?????????????? NC

[Hermit-The-Prog]

37. I dunno. That doesn't include the new Send-A-Hermit-To-Hawaii charity fund.

[70sEraVet]

5. There needs to be wage restrictions on the people running these 'non'profits.

[PatrickforB]

14. Wage caps for CEOs is a great idea across the board, nonprofit or for-profit. n/t

[70sEraVet]

20. Agreed.

[niyad]

6. May all involved receive vverything they deserve.

[Hekate]

7. Indeed

[Aussie105]

11. Not the first time nor the last time

that a 'charity' benefits the wrong people.

The control of finances need to be taken away from actual charities, using oversight by a reputable financial organization that tracks in and outgoing of donations and expenses.
And the head of any charitable organisation had better be very frugal in his request for a regular paycheck.
A $775,139 salary for the charity's president, Gregory Anderson, just isn't on!

Some Churches are well known for this, unfortunately.
And don't get me started on fake charity collectors in shopping centres!

Short of finding someone you personally want to donate to face-to-face, there is no way around this rorting.

I'd personally rather give a person in need - genuine need - $50 than donate 10 cents to any charity.
Same for animal welfare organizations - no donations, but I'd rather walk into a shelter and ask them what they need, and go out and buy food, bedding, whatever.

[bucolic_frolic]

12. What if it's a political non-profit and the money all goes to a candidate's legal fees?

Asking for a friend.

[Hikerchick57]

15. I remembered getting calls from them, I only give locally to organizations that help my community.

[FakeNoose]

18. I've never gotten calls from this particular scam

... but I used to get calls from people (mostly men) asking for donations to the "local fireman's charity" or the "local policeman's charity." I'm guessing these callers made some good scores, but they never got any donations from me. It was all too skeevy, and I blocked those phone numbers.

Nowadays they don't even bother making phone calls. It's just skeevy websites and some people are way too trusting.

[4lbs]

19. This is why I rarely ever "give" to charities anymore. I'd rather give the money directly to the person(s)

they claim to support.

Back in the olden days of .... say... 30 years ago, that's what many people did.

What's that? You want me to donate $20?

Can I look at your financials to verify that most or nearly all of that $20 will actually go to the people you claim will get it?

No? Well then... kick rocks.

BTW, I have an even harsher criteria than that 25% operating cost figure. I want 90% of any of my donations to go to the people a charity is supposed to help. That is another reason why I don't really "give" any more. No charity meets that figure. Maybe a few "small" ones, but once they get bigger and mainstream, their operating costs go sky high.

[in2herbs]

21. Charity that allegedly gave just 1 cent of every $1 to cancer victims is sued for deceiving donors

Charities can also be used by individuals as an estate plan to avoid Wills, Trusts, and probate.

I am a private foundation, the foundation's only donor, and only donate to selected animal charities, I do not co-mingle with other charities, I do not receive a salary or benefits, and neither do the members on the Board --- who are all women.

There are many reputable national and international animal charities that are desperate for donors. In order for these animal charities to protect and rehab animals, the salaries for veterinarians and office staff must come out of the donation pool. Limiting your donating to only rescues that are in your neighborhood will never reach the charities that exist and do good outside your neighborhood.

A word of warning: the financial industry is wholly against the use of a charity instead of an IRA for making donations and estate plans. But doing so via a charity is a procedure that the tax gods at the IRS have approved of.

Feel free to DM me if you want info.

[HandmaidsTaleUntold]

23. Trumper

[marble falls]

27. Messes things up for more unknown, but legitimate charities ...

... I can catch most scams by asking if they are a tax exempt charity. But this charity, I think, is exempt.

There is no way to justify it.

[twodogsbarking]

31. Info on charities is available online. Check there first.

[Brenda]

32. Sounds like Susan G. Komen Scam. Devious as well as sociopathic and greedy. nt

[flying_wahini]

34. If you think that's bad somebody ought to audit Churches.

And the grift goes on.

[Oneironaut]

36. This ia fairly common I think.

Very few “charities” give more than 50% of funds to their stated cause. The rest goes to “administrative costs,” a big chunk of which goes to the charity’s executive leadership.

Just remember - the Wounded Warrior project throws lavish parties of millions of dollars of cost per party for their senior leadership constantly. Others have actually had parties with cocaine and prostitutes.

It’s a business, and, guilt is the sales pitch. It’s another means by which the rich siphon money from the poor.

[Grins]

38. $775,139 went to the charity's president?

“…the $775,139 salary of the charity's president, Gregory Anderson…”

$775,139 annual salary to a guy heading an $18- million charity?

Who does this guy think he is - Franklin Graham????

[orwell]

39. Another "God cured me" fraud...

...that led to a lucrative income.

The Cancer Conqueror!

https://www.dailymail.co.uk/news/article-13215685/Sham-charity-stole-18MILLION-donors-thought-giving-money-help-women-undergo-cancer-treatment.html

Another Anti-Christ for Jesus.

Sounds like future Speaker of the House material to me...