A nonprofit breast cancer charity based in Florida has been banned from soliciting in Michigan for 10 years because of deceptive fundraising practices.
Michigan Attorney General Bill Schuette says the organization, Breast Cancer Outreach Foundation, Inc, deceptively raised $1.4 million nationwide, and at least $36,372 in Michigan.
The group’s solicitations told donors that funds raised would be used for breast cancer research grants, when in reality all the money raised, except for one grant totaling $8,235 went to professional fundraisers and other expenses. The money did not go breast cancer research.
“In recent years, my office has combatted deceptive solicitations for cancer, veterans, firefighters, and police. It’s sad to see these causes exploited,” said Schuette. “Donors should remain vigilant during solicitations—especially regarding emotional appeals for sympathetic causes. And it bears repeating: research the charity before giving.”
The foundation will also pay $150,000, with $125,000 going for breast cancer research, and the remaining settlement will go to recoup the state’s investigative costs.
Best practices when donating
To ensure residents are making the best decision and has all the information when it comes to donating, the Attorney General’s Office established an online searchable database.
This is to ensure that those donating can make wise decisions, and know that the money they are giving is going to where it is intended.
Some tips for donating wisely are:
• Research: Make sure the money is going to a legitimate charitable nonprofit with tax-exempt status.
• Be careful with online donating: Verify the site’s connection is secure for financial transactions, and research to see if the fees are deducted from donations, if donations are tax-deductible and where the funds are going.
• Protect personal and financial information: When possible, provide donations to organizations that are known and trusted. Never give a check or make a contribution by credit card payable to an individual.
• Be wary of phone calls: Callers can often be for-profit fundraising firms that keep a large portion of the donations received. Never give out credit card information over the phone, and tell the caller you will research the cause and get back to them.