Florida Charity Banned from Soliciting in Michigan for Ten Years for Allegations of Deceptive Fundraising
A Florida Charity is facing over $100,000 in fines and is banned from soliciting in Michigan for the next ten years due to alleged deceptive fundraising.
Last month, the Michigan Attorney General issued a notice to the Breast Cancer Outreach Foundation, alleging over 14,500 civil violations of charitable donations fraud.
These violations carry a maximum penalty of $10,000 per violation.
According to the Attorney General’s Office, in 2015, the Breast Cancer Outreach Foundation raised over $1.4 million, telling donors that the funds would be used for grants for breast cancer research.
However, the Foundation’s financial statements allegedly failed to show any breast cancer research grants awarded in that year. The company then amended their financials to show one grant of $8,000 for research. All other money raised allegedly went to other purposes, such as paying professional fundraisers and executive salaries.
A settlement was reached with the company, where Breast Cancer Outreach Foundation will pay $150,000, with $125,000 going to breast cancer research and the remaining $25,000 to recoup the state’s costs.
The Foundation will withdraw their charitable solicitations registration and is also banned from soliciting in Michigan for the next ten years.