CharityWatch has different tools in our toolbox than the
Federal Trade Commission (FTC) and state charity regulators. As an independent
charity watchdog organization, we are often able to warn donors about
inefficient charities and predatory fundraising schemes many years before
regulators are able to take the steps necessary to pursue legal claims against
bad actors or shut them down for good. To illustrate, CharityWatch has been
issuing “F” ratings to some of the charity clients cited in the Complaint in the matter of Federal Trade Commission, et al. v. Associated Community Services, Inc., et al. since
as long ago as 2007 (Kids Wish Network). It is important to note that the defendants in this legal
action were not the charities themselves, but rather some of the charities’
for-profit telemarketers that solicited donations on their behalf. The Complaint and details regarding the subsequent settlement can be viewed on the FTC’s website.
The FTC worked in conjunction with 46 agencies from 38
states and the District of Columbia to investigate telemarketing companies that
are estimated to have placed as many as 1.3 billion telemarketing calls to 67
million different phone numbers. The FTC’s press release citing the Complaint states that “the
defendants conducted an invasive robocall onslaught and kept the lion’s share
of the more than $110 million of consumers’ contributions – as much as 90 cents
of every donated dollar.” In addition, according to the FTC, “the complaint
charges the defendants with violating the TSR [Telemarketing Sales Rule]
provision that prohibits the delivery of prerecorded messages to prior donors
unless the call promptly provides the consumer with a means to opt out of
future messages.”
CharityWatch encourages donors, such as those in California or Florida, to check the website of their state charity regulator for more information about how
these telemarketing companies may have targeted donors in their respective
state.
List of CharityWatch “F” Rated Charities Cited in the
Complaint
Claiming to assist cancer patients:
Claiming to assist individuals with various health-related issues:
Claiming dedicated to assisting veterans, firefighters, and other first responders: