Question re unregistered charity
Posted: Thu Aug 23, 2007 8:30 pm
I need some input on something I'm checking into.
There appears to be an unregistered charity collecting funds under false pretenses, and also accepting funds from a registered charity which are earmarked to be given to the unregistered charity. Donors are being told that their donations are tax deductible, but it appears they are not deductible due to the earmarking.
The registered charity claims it is not giving money to the unregistered charity, but if that's true, why would donations need to be earmarked?
In the interim, the state of Oklahoma consumer protection agency appears to have issued a cease and desist order against the unregistered charity, for misappropriation of funds. From what I understand, it appears that they're just living off the money. I'm quite sure they are not reporting this money to the IRS as income.
The reason for the cease and desist might go deeper, though. Basically, this is the family of a child who was murdered by a stepfather, and the biological father's family claims the father is a "war hero" who was serving in Iraq when his daughter was killed. In truth, he was in drug rehab at Fort Benning, and was deemed unfit for military service and given a dishonorable discharge. They were and are soliciting funds under this facially false story, and I'm wondering if this is a fraudulent inducement case.
Can someone take a look at this and give me an opinion?
http://www.activeboard.com/forum.spark? ... D=13039208
There appears to be an unregistered charity collecting funds under false pretenses, and also accepting funds from a registered charity which are earmarked to be given to the unregistered charity. Donors are being told that their donations are tax deductible, but it appears they are not deductible due to the earmarking.
The registered charity claims it is not giving money to the unregistered charity, but if that's true, why would donations need to be earmarked?
In the interim, the state of Oklahoma consumer protection agency appears to have issued a cease and desist order against the unregistered charity, for misappropriation of funds. From what I understand, it appears that they're just living off the money. I'm quite sure they are not reporting this money to the IRS as income.
The reason for the cease and desist might go deeper, though. Basically, this is the family of a child who was murdered by a stepfather, and the biological father's family claims the father is a "war hero" who was serving in Iraq when his daughter was killed. In truth, he was in drug rehab at Fort Benning, and was deemed unfit for military service and given a dishonorable discharge. They were and are soliciting funds under this facially false story, and I'm wondering if this is a fraudulent inducement case.
Can someone take a look at this and give me an opinion?
http://www.activeboard.com/forum.spark? ... D=13039208