The Federal Trade Commission has charged four major cancer charities and their operators with bilking $187 million from donors.
FTC and law enforcement partners from every state and the District of Columbia have filed court complaints against the Cancer Fund of America Inc., Cancer Support Services Inc., Children’s Cancer Fund of America Inc. and The Breast Cancer Society Inc. and their executives.
Tennessee Secretary of State Tre Hargett said the four allegedly scammed more than $187 million from consumers throughout the country, and used a majority of that money on themselves.
Tennessee Secretary of State Tre Hargett said the four allegedly scammed more than $187 million from consumers throughout the country, and used a majority of that money on themselves.
Cancer Fund of America, started in 1984, claims in pledge letters that it is on the front lines of the fight against cancer. But its main activity has nothing to do with funding research or paying for cancer treatment. Instead, the charity collects donated goods — including shampoo, DVDs and air fresheners — and ships them across the nation to dying patients and the families who have gone broke trying to save them.
Cancer patients get help to make their lives a little easier. But while gift baskets are made up of trinkets and toiletries, for-profit fundraisers take home millions of dollars every year. CFA’s founder and at least a dozen other family members earn a total of $1 million in salaries from CFA and four spin-off charities.
The waste has been going on for decades. Year after year CFA raises millions and sends 82 percent to its for-profit fundraisers. Over the past decade, fundraisers have collected $98 million in donations. Patients have gotten less than $1 million in direct cash aid over those 10 years, IRS records show.
As far back as 1991, CFA’s founder, James T. Reynolds Sr., said he intended to reduce the charity’s high-fundraising costs. But more than 20 years later, fundraising still takes more than 83 cents of every dollar raised.
Reynolds referred all questions to his attorney. Regarding his charity’s fundraising expenses, he said, “I can’t help it that some things are costly.”
“We can only help others with the funds we net whether it be 90 or 20 percent,” Reynolds said.
In an online statement, The Breast Cancer Society denied any wrongdoing, but said it was suspending operations because the investigation was a distraction. The other groups have made any statements.
