Email One of the most disgusting methods criminals use to con money out of the populace involves exploiting philanthropic intentions. These frauds pose as altruistic organizations hoping to make this sick, unfair world slightly better, then use some underhanded accounting tactics and use it for their own personal needs. Fortunately, resources such as Charity NavigatorThe Chronicle of PhilanthropyBetter Business Bureau and others provide consumers with plenty of advice on how to recognize a potential fraud trying to pass itself off as something entirely altruistic. Research them thoroughly before making any definitive financial commitments.
See Article History Charity fraud, type of fraud that occurs when charitable organizations that solicit funds from the public for philanthropic goals, such as seeking cures for diseases or aiding the families of slain police officers, solicit donations in a deceptive manner or use the monies that they collect for purposes not intended by the donors.
Charities are subject to the kinds of fraud that can also plague business organizations, such as embezzlement and misappropriation of funds by executives. Establishing and prosecuting charity fraud is not necessarily straightforward.
Many scholars agree that money solicited by persons or groups that are not legitimate charitable organizations constitutes charity fraud, but the question of fraud is complicated when considering charities that use a high percentage of donations for administrative costs or additional fund-raising rather than for the charitable cause.
These kinds of issues, as well as the very large number of charitable organizations worldwide, make charity fraud difficult to monitor and eradicate.
Charity fraud is perceived as a particularly abhorrent kind of deceptive business practice because it abuses the trust of altruistic persons who offer donations with the expectation that they are assisting those in need.
Charity fraud can result in a lasting backlash because those responsible have manipulated the emotions and generosity of donors in order to elicit a donation, leading to anger and disillusionment if it is revealed that the charity and philanthropic promises were invalid. Disillusionment and suspicion caused by fraudulent charitable solicitation or misappropriation of funds has the additional effect of tainting the fund-raising appeals of legitimate charities, which suffer by association with those who defraud donors.
Misrepresentation Charities may be guilty of fraud when they mislead donors about the percentage of contributions that is applied to various business expenses, thereby vastly overstating the amount of the contribution that will go to the charitable cause. All charities have some administrative costs, but some charities have exorbitant overhead costs that result in almost none of the donation actually going to the charitable cause.
Charitable organizations may also act in a fraudulent way by misrepresenting themselves or associating themselves in a deliberately vague way with known famous charities or with governmental associations for the purpose of obtaining donations.
An example of this kind of deception on the part of a charity is the case of the Police Survivors Fund. It was established in and disbanded by when its founder pleaded guilty to various fraud charges.
The aim of the Police Survivors Fund was to aid widows and children of police killed on the job. Though this aim was clearly stated in telephone solicitation calls, other factors were left more vague.
Consumers may have been confused by the name of the organization as stated during the telephone solicitations because it sounded official. The actual connection between any municipal police force and the Police Survivors Fund was not made clear to donors because there was no such sponsorship of the charity by a police force, despite the official-sounding name.
The Police Survivors Fund had a fund-raising strategy familiar to prosecutors of charity fraud. Fund-raisers would tell those who were solicited that the donation was for widows and children. Fraudulent fund-raisers may also intimidate those they call by misrepresenting the result of refusing a donation, using fear suggesting that police departments will no longer answer calls from the residence of a hesitant donor, for example or social pressure.
Legitimate and well-meaning charities that do not engage in the practices described above do not necessarily escape charges of fraud, because they may suffer from mismanagement of funds by charity executives. Perhaps the most famous example of a scandal affecting a well-respected charity is the case involving the former president of United Way of America, who received a seven-year prison sentence for using money donated to the charity to fund his personal expenses, including lavish vacations and support for mistresses.
Charities as victims Charities that are constantly seeking new fund-raising opportunities may themselves fall victim to fraudsters.Since I got a C on this essay, I decided to revise this essay. I want to have a better grade and also because Jennifer had shown me that I have lots of grammar mistakes in this essay.
Not just grammar mistakes, but also a lot of small mistakes in this essay.
Charity Fraud Essay Words 6 Pages In the United States a charitable foundation is an organization which has formalized the process of relieving poverty, advancing education, supporting disaster relief, and/or assisting with community projects. May 21, · While the government's actions in pursuing this case of charity fraud are commendable, donors are only slightly more protected today than they were yesterday. The Top 9 Charity Scams of All Time. April 10, Share. Better Business Bureau and others provide consumers with plenty of advice on how to recognize a potential fraud trying to pass itself off as something entirely altruistic. Research them thoroughly before making any definitive financial commitments. considered one of the worst.
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20 June by Third Sector Online Voluntary organisations can be an easy target for criminals, but there are steps they can take to minimise this risk.
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Charity Fraud Essay Words 6 Pages In the United States a charitable foundation is an organization which has formalized the process of relieving poverty, advancing education, supporting disaster relief, and/or assisting with community projects.
Essay on Fraud: Early Warning Signs of Fraud - A Ponzi scheme is a type of fraud called investment fraud. It, “involves the payment of purported returns to existing investors from .