Beware of scams as holidays approach

Last updated Nov 22, 2015 2:30pm0

In 2014, Americans donated an estimated $350 billion to charities. A generous country we are, but how much of those funds actually benefit those in need? You might not want to know. There are good charities. There are bad charities. And there are the worst charities.

America’s “worst” charities have gained their titles by how much they raise in donations for their cause, and how little of that money goes towards the same cause. As these deceptive organizations ask you for your financial support, many lie about where or to whom that money is alloted, sometimes paying themselves “multiple salaries” and “consulting fees.” One cancer charity paid the company president’s son nearly $18 million over eight years, to solicit donations. The Tampa Bay Times reports:

Some nonprofits are little more than fronts for fundraising companies, which bankroll their startup costs, lock them into exclusive contracts at exorbitant rates and even drive the charities into debt.

Bogus charities often use accounting tricks that allow them to legally squeak by. Not only do they deceive the public, they are also taking money away from reputable charities that make a true difference in the lives of many. One very large dishonorable charity in Florida, called the Kids Wish Network, has taken the #1 spot for “America’s Worst Charity.” The Tampa Bay Times adds:

Every year, Kids Wish Network raises millions of dollars in donations in the name of dying children and their families. Every year, it spends less than three cents on the dollar helping kids. Most of the rest gets diverted to enrich the charity’s operators and the for-profit companies Kids Wish hires to drum up donations.

Below is a descending list (#1 being the worst) of America’s Worst Charities, last updated in December of 2014. Sadly, not much has changed since the report was created in 2013. The majority of these charities continue to mislead. They are ranked first by how much each charity took from donors and paid solicitors, and then how much of the total donations raised was paid to their cause. Some of the figures are astounding.

Charity name Total raised Paid to solicitors % spent on

by solicitors direct cash aid

1 Kids Wish Network $137.9 million $115.9 million 2.5%

2 Cancer Fund of America $86.8 million $75.4 million 1.0%

3 Children’s Wish Foundation International $92.7 million $61.2 million 10.6%

4 Firefighters Charitable Foundation $62.8 million $53.8 million 7.4%

5 Int’l Union of Police Associations, AFL-CIO $66.6 million $50.4 million 0.5%

6 Breast Cancer Relief Foundation $63.9 million $44.8 million 2.2%

7 American Association of State Troopers $48.1 million $38.6 million 8.9%

8 National Veterans Service Fund $70.2 million $36.9 million 7.8%

9 Children’s Cancer Fund of America $43.7 million $34.4 million 4.6%

10 Children’s Cancer Recovery Foundation $38.5 million $28.9 million 0.7%