June 22, 2015

On May 18, 2015, the Federal Trade Commission (FTC) and 58 agencies from all 50 states and the District of Columbia filed a complaint charging four cancer charities and the individuals controlling them with allegedly swindling more than $187 million from consumers.

Because multistate actions generally only include 25 to 30 states, it appears that Attorneys General and Secretaries of State in every jurisdiction are active and serious about making charities and fundraisers accountable for their actions and the public representations. In fact, we may see more similar actions in the future. With this in mind, it is important for all charitable organizations to ensure that they are in compliance with all federal and state law requirements relating to charitable fundraising.

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