A newly announced action by the Federal Trade Commission (FTC), in coordination with law-enforcement agencies in 19 states, exposes a major deceptive fundraising scheme at a charity-affiliated vehicle donation operation.
According to a Complaint filed on September 25, 2025, the fundraising company Kars‑R‑Us.com, Inc. (Kars) and its operators, Michael Irwin and Lisa Frank, solicited vehicle donations nationwide on behalf of the United Breast Cancer Foundation, Inc. (UBCF), claiming that donated vehicles would help the charity “save lives” through free or low-cost breast cancer screenings. The Complaint alleges that of the more than $45 million raised between 2017 and 2022, only $126,815 (0.28 %) was used for the advertised breast-cancer screening services.
A Proposed Settlement Order would permanently bar co-defendant Michael Irwin from participating in any fundraising, directly or indirectly, and prohibit the company and its current owner, Lisa Frank, from misrepresenting any charitable solicitation, funding allocation, or the percentage of contributions applied to the stated mission. It would require Kars-R-Us and Frank to substantiate all future fundraising claims and, within ten days of the Order’s entry, require the defendants to pay an initial $550,000 into an escrow‐fund earmarked for charities consistent with the claimed breast-cancer screening mission.
The Stipulation Order also enters a judgment of $3,882,091 against the defendants, with most of the amount suspended contingent on the truthfulness of their sworn financial statements, and provides that any misstatement or omission will trigger immediate payment of the full judgment plus interest. Moreover, the defendants must relinquish any interest in transferred assets, fully cooperate with investigations, retain detailed records for up to ten years, and deliver the order to all relevant personnel and affiliated entities within set timeframes.
Data aggregator, Charity Navigator, currently gives United Breast Cancer Foundation a perfect 4 out of 4 stars and a 96% charity rating based on its fiscal years 2021, 2022, and 2023, despite the organization being at the center of the FTC and multi-state enforcement action alleging deceptive marketing practices. Charity Navigator’s profile of United Breast Cancer Foundation states: “If this organization aligns with your passions and values, you can give with confidence.” It reports that the charity spent between 80.5% and 86.5% on its programs during 2021 – 2023, and that it kept its overhead spending, which includes fundraising costs, below 20% annually.
This stark disconnect underscores the weaknesses in Charity Navigator’s automated rating system, which relies primarily on data pulled from unaudited IRS Form 990 tax filings. These forms are self-reported by charities, often contain inconsistencies, omissions, and subjective expense categorizations, and are not verified for accuracy by the IRS. As a result, a charity can appear financially efficient on paper while diverting much of its fundraising revenue to overhead or outside contractors. Without manual analysis or cross-reference to audited financial statements, such ratings can inadvertently mislead donors into trusting organizations whose public filings mask serious governance or accountability issues.
By contrast, United Breast Cancer Foundation has received an “F” rating from CharityWatch since we began rating the group in fiscal 2008. Our analysts determined that the charity spent only 20% of its cash expenses on its programs and a striking 80% on overhead in 2022. We also determined that it cost the charity $75 to raise every $100 in donations that year.
To an untrained eye, (or an unsophisticated algorithm), United Breast Cancer Foundation’s financial reporting makes the organization appear to be operating efficiently. However, CharityWatch’s analysts, who are degreed accountants, found that United Breast Cancer Foundation regularly nets its fundraising costs from revenue rather than booking them as fundraising expenses. We also found that the charity counted $6.1 million in “joint costs” in its reported program spending in 2022.
Its poor financial performance has not stopped the charity from spending big on salaries for its executives:
| Name | Title | 2022 Compensation |
|---|---|---|
| Audrey Stephanie Mastorianni | President / Executive Director | $610,375 |
| Mary Elisabeth Reichart | Director of Operations | $184,606 |
| Kenneth Petterson | Senior VP of Donor Engagement | $121,780 |
According to the United Breast Cancer Foundation 2022 tax filing, UBSC reports re: the existence of a family relationship among officers, directors, trustees, or key employees, a “brother/sister” relationship between Nicholas Mastroianni II and Audrey Stephanie Mastroianni, and a “brother/sister” relationship between John Mastroianni and Audrey Stephanie Mastroianni (IRS Form 990, Schedule O).
All three Mastroiannis are reported as being both board members and officers of UBCF. Audrey Stephanie Mastroianni is reported as President and Executive Director, Nicholas Mastroianni II as Secretary, and John Mastroianni as Treasurer (IRS Form 990, Part VII).
UBCF reports having nine voting members on its governing body at the end of 2022, with six voting members reported as independent (IRS Form 990, Part VI, Section A, lines 1a & 1b). Also according to the UBCF 2022 tax filing: “Audrey Stephanie Mastroianni, as sole member, may appoint members to the governing body” (IRS Form 990, Schedule O re: Form 990, Part VI, Section A, line 7a).
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| Charity | |
|---|---|
| United Breast Cancer Foundation |
