Accounting Irregularities: Regulators Zooming In

The editors of The Nonprofit Times recently published a warning to charities around the nation: More than ever, state regulators are taking aim at certain accounting practices they assert are misleading and improper. In particular, they are focusing on two issues: (1) allocation of joint costs and (2) valuations of gifts in kind (GIK); that is, non-cash donations. While - so far - the regulators’ positions on Read More

Cause-Related Marketing: New Aggressive Enforcement

In the 1980’s, the American Express company tried out an advertising technique that had not been done before. The financial services giant joined with the nonprofit organization that was leading the fundraising campaign to pay for restoring the Statue of Liberty.  This experiment was a huge success for both sides. Here’s how it worked: American Express launched an advertising campaign to sign up new Read More

Sting Against Charity Fraudsters Allegedly Helping Veterans

Back in 2015, the Federal Trade Commission and all 50 state attorneys general joined in a coordinated lawsuit to take down a group of four sham charities and the people running them. These scam artists collected some $187 million over a four-year-period from unsuspecting donors around the U.S. who thought they were giving money to help cancer patients.  Instead, the “overwhelming majority of” the money was spent Read More

Charity Fraud: State AGs Crack Down

Attorneys general around the nation are - now more than ever - high profile and newsworthy as they take on matters ranging from defying presidential executive orders to cracking down on criminal business conspiracies. They continue to work together as well to root out charity fraud and malfeasance, particularly if these activities cross state lines. Last year, all 50 state attorneys general cooperated in halting a Read More