by AJ on November 14, 2016 - 8:47pm
People donate money to different medical foundations in hopes to raise awareness and further research. Many people do this to help ill patients, in memory of someone who they have known that passed from the sickness or to do what they think is a kind act of good heartedness. In recent years, some foundations have been found to be fraudulent. This means that they are advertising for people to donate money to their fictional foundation. Then when donations are made, the money is not going to a foundation but into the con artists’ pockets. Rebecca R. Ruiz the author of “4 Cancer Charities Are Accused of Fraud” states that, “In its complaint, the F.T.C. [Federal Trade Commission} called all four of the cancer groups “sham charities,” charging the organizations with deceiving donors and misusing millions of dollars in donations, including putting money toward personal expenses like carwashes and college tuition, from 2008 to 2012.” Another article, “Cancer Charities Called $187 Million ‘Sham’” by Cameron McWhirter writes that, “A group of family members whose charities claimed to be raising millions of dollars for cancer victims bilked donors to the tune of $187 million over five years, spending some of that money on fancy cars and trips for themselves and their friends, according to a civil suit.” Lastly, Tom Parfitt the author of, “Outrage as charity bosses pocket six-figure salaries from generous public donations” shares that, “Nine executives at Cancer Research UK earn more than the Prime Minister, including chief executive Harpal Kumar, who pockets up to £240,000 a year.” These three authors are proving to many people that there are fraudulent cancer foundations around the world. These people are posing to help cancer breakthroughs and patients but are taking money from generous people to fund themselves.
There are many ‘foundations’ that have been found to be fraudulent, a few of them are: Cancer Fund of America, Children’s Cancer Fund of America, Breast Cancer Society, and Cancer Support Services. While there are most likely many more fraudulent ‘foundations’ around the world, it is important to be cautious while donating to any foundations. Ruiz, states, “Two of the charities, the Children’s Cancer Fund of America and the Breast Cancer Society, agreed to settle the charges before the complaint was filed on Monday, according to the F.T.C. Those organizations will be dissolved. Litigation will proceed against the two other charities and Mr. Reynolds. His son, who is also named in the complaint, agreed to settle charges and will be banned from fund-raising, charity management and oversight of charitable assets.” These men are being held responsible for their actions, thousands of people were deceived by the actions of these men. Some of the money donated was recovered and some of it has been lost to these corrupt foundations. Furthermore, in another article about fraudulent ‘foundations’ the writer McWhirter, says that, “The alleged fraud, which would be one of the largest-ever involving a charity, was detailed in a complaint filed by the Federal Trade Commission, all 50 states and the District of Columbia.”
While many of these fraudulent foundations are being discovered, there are still many fraudulent foundations across the globe. For example, an article by Parfitt states that, “Cooke, a poppy seller, was inundated with requests from charities she felt were "taking advantage" of her generosity. The mother-of-three was struggling with her finances after being diagnosed with cancer. A spokesman for the NSPCC said: "We have thousands of long-term supporters, who are committed to helping end child abuse, of which Olive Cooke was one.”” While there have been many fraudulent foundations that have been uncovered over the last few years, it is possible that there are many more foundations that are ran by people who are pocketing the money instead of using the money to help ill patients.
These fraudulent foundations are being uncovered over time, which is great for accountable foundations that raise money for a good cause. This also raises the issue that people may become hesitant and skeptical about donating money to different foundations because for the fact that some foundations can be fraudulent.
McWhirter, C., (2015). Cancer Charities Called $187 Million ‘Sham’. The Wall Street Journal.
Parfitt, T., (2015). Outrage as charity bosses pocket six-figure salaries from generous public
donations. Express. Retrieved from http://www.express.co.uk/news/uk/582911/charity salaries-donations-Cancer-Research-NSPCC-Amnesty-Olive-Cooke
Ruiz, R., (2015). 4 Cancer Charities Are Accused of Fraud. The New York Times. Retrieved