Your Legal Questions Answered

Search Questions Previously Answered

No proceeds from fundraiser. What can I do?

There is a ranch in our state that recently held a second fundraiser for a charitable organization. Although the owner advertised that the proceeds would go to the charity, the owner has kept the proceeds. His excuse is always "he didn't make anything." I have contacted the charity several times via email (can't find a phone number) without any reply. What can I do? Is there somewhere else I can report him?

I would start by doing a computer search for the charity’s phone number or checking the Form 990 tax information return on GuideStar.  Form 990 requires a phone number on page 1.   If that doesn’t work, I would look up the officers and directors of the charity (from their tax return on GuideStar if you don’t have any other source) to see if I could reach any of them independently.  They have the most to lose from someone raising funds in their name and not disbursing anything to them.

If that is a dead end or doesn’t bring results and if you are in one of the 38 states or the District of Columbia that has a charitable solicitation registration statute (it used to be 39 states but Arizona repealed its statute this year), I would check to see if there is a professional fundraising counsel or solicitor contract filed by the ranch owner or the charity.  If the charity is located in a different state, I would look there if that state has a registration statute.  These states usually have pretty strict rules for counsel or solicitors and usually prohibit solicitation in the name of a charity without some sort of written agreement.  I would report the situation to the state office that supervises these filings.

If there is no such office in either state, I would report to the state Attorney General or your local prosecutor.  Even without a registration statute, it sounds as though it could be misrepresentation, fraud, or perhaps even theft.  I applaud your effort to get to the bottom of the issue.  It is a disservice to all charities for operators to conduct “fundraisers” without raising any funds for the charities.

Add new comment

The content of this field is kept private and will not be shown publicly.

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.