Reynolds cancer charities

The Reynolds cancer charities are a series of "sham charities"[1] run by James T. Reynolds, his family and friends; they include the Cancer Fund of America, Cancer Support Services, Children's Cancer Fund of America, the Breast Cancer Society and others.[2] These charities have been identified as among America's worst, based on high management costs, high salaries to directors, and low (1%–2.5%) proportion of income disbursed to beneficiaries.[3] The Better Business Bureau warned in 2013 that cancer patients received only "pennies in the dollar" from one of the charities.[4]

A civil suit was initiated by the Federal Trade Commission and all fifty states plus the District of Columbia[5] in May 2015, claiming that "most of the money collected through donations from 2008 through 2012 went to pay the telemarketing companies, and the operators of the charities then kept most of the rest of the funds for themselves". The groups are alleged to have used an "accounting device that involved pharmaceutical shipments overseas", making them appear to be much larger and more active than they actually were.[6]

Two of the charities, the Breast Cancer Society and the Children's Cancer Fund of America, agreed to shut down to settle the complaint.[5]

Reynolds set up the first charity after being forced out of the American Cancer Society in 1984 due to "sloppy record keeping" and allegations of theft of a vintage car donated to the charity.[7]

Reports indicate that up to $187m has been appropriated by Reynolds and his immediate family, as directors and officers of four of the charities.[8] The Federal Trade Commission described this as "one of the largest charity fraud cases ever".[9] Reports include lavish spending on luxury goods, family trips to Disneyland and payment of college tuition fees, the beneficiaries being a group of individuals including Reynolds's close family and friends.

Tampa Bay Times and the Center for Investigative Reporting listed Cancer Fund of America at no. 2 on its list of America's Worst Charities, based on costs of soliciting donations over a ten year period.[3] Investigations of Reynolds's "wretched charity empire" were reported to have begun some time in 2013.[10]

On March 30, 2016, the Federal Trade Commission announced the complete disbandment of the Cancer Fund of America and Cancer Support Services. Additionally, James Reynolds, Sr. was barred from ever again operating or fundraising for non-profit organizations.[11]

References

  1. ↑ "Sham charity operators turn the Big C into a Big Con". Federal Trade Commission press release. May 19, 2015. Retrieved June 1, 2015.
  2. ↑ "All in the family" (PDF). Tampa Bay Times. September 12, 2014. Retrieved June 1, 2015.
  3. 1 2 "America's Worst Charities". Tampa Bay Times. September 12, 2014. Retrieved June 1, 2015.
  4. ↑ "BBB Alert: Cancer Patients Get Pennies Of Each Dollar Donated To Breast Cancer Society". Better Business Bureau. October 13, 2011. Retrieved June 1, 2015.
  5. 1 2 "Cancer Charities Agree To Dissolve Amid Fraud Claims". Forbes. May 19, 2015. Retrieved June 1, 2015.
  6. ↑ "Cancer Charities Called $187 Million 'Sham'". The Wall Street Journal. May 20, 2015. Retrieved June 1, 2015.
  7. ↑ "The Seedy, Profitable World of Scam Charities". The Atlantic. May 20, 2015. Retrieved June 1, 2015.
  8. ↑ "Four Cancer Charities Accused of Pocketing $187M in Donations". Good Morning America. May 19, 2015. Retrieved June 1, 2015.
  9. ↑ "4 Cancer Charities Are Accused of Fraud". The New York Times. May 19, 2015. Retrieved June 1, 2015.
  10. ↑ "The Reynolds Family's Wretched Charity Empire". Nonprofit Quarterly. June 14, 2013. Retrieved June 1, 2015.
  11. ↑ "FTC, States Settle Claims Against Two Entities Claiming to Be Cancer Charities; Orders Require Entities to Be Dissolved and Ban Leader from Working for Non-Profits". Federal Trade Commission. March 30, 2016. Retrieved March 30, 2016.
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