Charities

SAN FRANCISCO – Today in San Francisco, California Attorney General Rob Bonta joined GLIDE to share tips and resources on how to donate safely and avoid scams while giving this holiday season. The Attorney General has primary regulatory oversight of charities and the professional fundraisers who solicit on their behalf, and may investigate and bring legal action against charities that misuse charitable assets or engage in fraudulent fundraising practices. In providing today’s tips, Attorney General Bonta encourages donors to take the necessary steps to ensure that their donations get into the correct hands.

“As a proud Bay Area resident, I’m grateful for the opportunity to join GLIDE in giving back this holiday season,” said Attorney General Bonta. “For more than 50 years, GLIDE has been deeply rooted in the Tenderloin community, providing free meals, childcare, housing assistance, and other support – with the goal of creating, sustainable long-term pathways for residents to get back on their feet. I want to express my heartfelt appreciation to the GLIDE staff and volunteers who make this vital work possible and for their partnership today in providing valuable charity tips during the annual time of giving. I encourage Californians to do their research to ensure their donations go where they intended. If you believe that a charity or fundraiser is engaged in misconduct, please report it to my office at oag.ca.gov/charities/complaints.”

"GLIDE cares for our community by providing meals, rental assistance, health resources, childcare, supportive programs and more,” said Dr. Gina Fromer, President & CEO of GLIDE. “We couldn’t carry out our love agenda for the people of San Francisco without the amazing generosity of our donors. We appreciate the Attorney General and his staff for ensuring that everyone’s holiday donations end up where they belong.”

Tips on How to Donate Safely and Avoid Charity Fraud

• Check the Registration Status: Charities and professional fundraisers soliciting donations in California are required to register with the Attorney General’s Registry of Charities and Fundraisers (Registry). They are also required to file annual financial reports. Before you donate, make sure to confirm that the charity is registered and up to date with its financial reporting. Our registry search tool allows you to search the Registry’s database and verify whether a charitable organization or fundraiser has complied with the Attorney General’s registration and reporting requirements.
• Give to Organizations You Trust: Always do your research before making a donation. Review the charity’s annual financial reports to find out how much of your donation will actually be spent on the charitable cause, as well as how much, or if any, will go to overhead and employee compensation. Research charities in your community and support those that make a positive impact.
• Don’t Be Pressured by Telemarketers: If you receive a call from a telemarketer, do not fall for pressure tactics or threats. Remember, you have the right to decline a donation request and can hang up. If you are interested in donating to a particular organization, you can visit their website or contact them directly to get more information.
• Be Cautious of "Look-Alike" and Fake Websites and Emails: Be on the lookout for websites and emails that use slightly different web addresses (URLs) or email addresses in order to pass off as a legitimate charity. Scammers sometimes purchase these types of URLs or create fake email accounts in order to trick potential donors into donating to a look-alike website or steal your information. Be careful of fake websites by closely looking at the web address, and be cautious of web addresses that end in a series of numbers.
• Watch Out for Similar-Sounding Names and Other Deceptive Tactics: Some organizations use names that closely resemble those of well-established charitable organizations in order to mislead donors. Additionally, if you receive an email from an organization to which you have never donated, take extra precautions before clicking on any links. Be skeptical if someone thanks you for a pledge or donation that you never made, as scammers use this trick to deceive you into paying them. If you are unsure whether or not you made a donation, make sure to check your records.
• Be Alert to Fundraising via Peer-to-Peer Social Network: Do not assume charitable fundraising that you see on social media are legitimate, even if the charitable campaign is shared by someone that you trust. If you plan to donate through a social network solicitation, do your research and find out whether your donation is going directly to a charity or to the person who created the campaign, whether the person who created the campaign will keep a portion of your donation, or if you will be charged a fee for donating.
• Protect Your Identity: Never give your Social Security number, credit card information, or other personal identifiable information in response to a charitable solicitation. Some organizations may sell or rent their donor lists to other organizations, including organizations that are not charities. Before making a donation, review the charity’s privacy policy to find out if your information will be shared with outside companies.
• Be Careful When Making Electronic Donations: Electronic donations — such as donations made via text, QR Codes, and portable credit card readers — have become common practice due to their ability to provide a quick and easy way to donate on the spot. While convenient, remember that anyone can create a QR code, send a text, or buy a portable card reader. Always confirm that the solicitation was submitted by a charity, or that the person facilitating the transaction is authorized to receive donations on behalf of a charity. Always check your receipt and your credit card/online payment method statement to ensure that the transaction charged to your account is accurate.

For more information on how to protect yourself against charity fraud, visit our donation tips webpage at oag.ca.gov/donations.

SAN DIEGO – Today in San Diego, California Attorney General Rob Bonta joined Sharia’s Closet to share tips and resources on how to donate safely and avoid scams while giving this holiday season. Attorney General Bonta has primary regulatory oversight of charities and the professional fundraisers who solicit on their behalf in California. The Attorney General may investigate and bring legal action against charities that misuse charitable assets or engage in fraudulent fundraising practices. In providing today’s tips, Attorney General Bonta encourages donors to take the necessary steps to ensure that their donations get into the correct hands.

“As the holiday season approaches, Californians once again exemplify the true spirit of generosity by volunteering time, donating goods, or making financial contributions to support charitable organizations doing incredible work in our communities. Sharia’s Closet is one of those organizations, and provides free, emergency clothing, diapers, and household essentials to those experiencing financial hardship or facing times of crisis,” said Attorney General Bonta.  “I want to thank them for their critical work and for partnering with us as we share tips to avoid charity scams. I encourage all Californians to extend a helping hand but be wary of potential scammers who might exploit your generosity and compassion. If you believe that a charity or fundraiser is engaged in misconduct, please report it immediately at oag.ca.gov/charities/complaints.”

“At Sharia's Closet, we believe that a small act of kindness can make a world of difference,” said Shamine Linton, CEO of Sharia’s Closet. “Every donation, every moment of support, and every effort to help, transforms lives.”

Tips on How to Donate Safely and Avoid Charity Fraud

• Check the Registration Status: Charities and professional fundraisers soliciting donations in California are required to register with the Attorney General’s Registry of Charities and Fundraisers (Registry). They are also required to file annual financial reports. Before you donate, make sure to confirm that the charity is registered and up to date with its financial reporting. Our registry search tool allows you to search the Registry’s database and verify whether a charitable organization or fundraiser has complied with the Attorney General’s registration and reporting requirements.
• Give to Organizations You Trust: Always do your research before making a donation. Review the charity’s annual financial reports to find out how much of your donation will actually be spent on the charitable cause, as well as how much, or if any, will go to overhead and other expenses. Research charities in your community and support those that make a positive impact.
• Don’t Be Pressured by Telemarketers: If you receive a call from a telemarketer, do not fall for pressure tactics or threats. Remember, you have the right to decline a donation request and can hang up. If you are interested in donating to a particular organization, you can visit their website or contact them directly to get more information, and give directly to that organizations.
• Be Cautious of "Look-Alike" and Fake Websites and Emails: Be on the lookout for websites and emails that use slightly different web addresses (URLs) or email addresses in order to pass off as a legitimate charity. Scammers sometimes purchase these types of URLs or create fake email accounts in order to trick potential donors into donating to a look-alike website or steal your information. Be careful of fake websites by closely looking at the web address, and be cautious of web addresses that end in a series of numbers.
• Watch Out for Similar-Sounding Names and Other Deceptive Tactics: Some organizations use names that closely resemble those of well-established charitable organizations in order to mislead donors. Additionally, if you receive an email from an organization to which you have never donated, take extra precautions before clicking on any links. Be skeptical if someone thanks you for a pledge or donation that you never made, as scammers use this trick to deceive you into paying them. If you are unsure whether or not you made a donation, make sure to check your records.
• Be Alert to Fundraising via Peer-to-Peer Social Network: Do not assume charitable fundraising that you see on social media are legitimate, even if the charitable campaign is shared by someone that you trust. If you plan to donate through a social network solicitation, do your research and find out whether your donation is going directly to a charity or to the person who created the campaign, whether the person who created the campaign will keep a portion of your donation, or if you will be charged a fee for donating.
• Protect Your Identity: Never give your Social Security number, credit card information, or other personal identifiable information in response to a charitable solicitation. Some organizations may sell or rent their donor lists to other organizations, including organizations that are not charities. Before making a donation, review the charity’s privacy policy to find out if your information will be shared with outside companies.
• Be Careful When Making Electronic Donations: Electronic donations — such as donations made via text, QR Codes, and portable credit card readers — have become common practice due to their ability to provide a quick and easy way to donate on the spot. While convenient, remember that anyone can create a QR code, send a text, or buy a portable card reader. Always confirm that the solicitation was submitted by a charity, or that the person facilitating the transaction is authorized to receive donations on behalf of a charity. Always check your receipt and your credit card/online payment method statement to ensure that the transaction charged to your account is accurate.

For more information on how to protect yourself against charity fraud, visit our donation tips webpage at oag.ca.gov/donations.

SAN FRANCISCO — California Attorney General Rob Bonta today delivered remarks on California Department of Justice’s preparations to protect California’s values, people, and natural resources ahead of a second Trump Administration. To view a recording of the press conference, please visit here. 

Attorney General Bonta's Remarks as Prepared for Delivery:

As the reality of a second Trump Administration takes hold, I know there is a great deal of fear, sadness, anxiety, and panic. 

I understand. 

I’m here today to reassure you that in California, progress will prevail. 

No matter who is in the White House, no matter who holds control of Congress, in California we will keep moving forward. 

In California, we will choose calm over chaos. 

Fact over fiction.

Belonging over blame.

Unity over division. 

“Us and we” over “I and me.” 

It’s why we’re the 5th largest economy in the world. Not in spite of our commitment to workers, consumers, and the environment, because of it. 

Because we’re the largest and most diverse state in the nation.

Because we believe in the power of inclusivity.

Because we believe in truth over lies. Hope over hate. Light over dark.

Because  we believe in looking forward.

It’s who we are in the Golden State. It’s in our DNA. Nothing and no one can change that. 

As Attorney General, I’ll continue to use the full force of the law and authority of this office to address injustice. 

To stand up for all people, especially those who have long been overlooked and undervalued.

To safeguard reproductive rights. 

And advocate for more housing — especially more affordable housing for lower and middle-income families just trying to get by.

I’ll continue to take on greedy corporate giants and fight for more affordable gas, groceries, and everything in between.  

I’ll continue to defend our world-renowned natural resources and protect them for generations to come. 

Continue to fight for clean water to drink and clean air to breathe.

Continue to crack down on illicit guns on our streets and get fentanyl out of our neighborhoods. 

Continue to fight for workers.

I’ll continue to protect, defend, and serve every single Californian. No matter your politics. 

I’m here to ensure every person — no matter how they look, how much money they make, where they’re from, who they love, how they identify, or how they pray — can pursue their version of the California Dream. 

A fair wage and good benefits.  

A safe and affordable place to live.  

Affordable and accessible health care. 

Good schools to send our kids to. 

Safe neighborhoods to raise our families. 

That’s my promise to you, no matter who is in the White House.  

We’ve been here before.

We lived through Trump 1.0. 

We know what he’s capable of. 

We know what plans he has in store. 

The silver lining is just that: we know. 

We know to take Trump at his word when he says he’ll roll back environmental protections, go after our immigrant and LGBTQ+ communities, attack our civil rights, and restrict access to essential reproductive care.

Which means, we won’t be flat-footed come January.

You can be sure that as California Attorney General, if Trump attacks your rights: I’ll be there. 

If Trump comes after your freedoms: I’ll be there. 

If Trump jeopardizes your safety and well-being: I’ll be there.

California DOJ did it before and we’ll do it again.  

During the last Trump Administration, California DOJ fought to stop illegal rollbacks and proposals that would’ve harmed the well-being, health, safety, and civil rights of our people and of people across the country. 

That would have caused irrevocable damage to our environment.

No matter who is in charge of the federal government…

No matter what the incoming Administration has in store… California will remain the steadfast beacon of progress it has long been.  

A constant, unwavering, immoveable force to be reckoned with.  

We’ll continue to be a check on overreach and push back on abuse of power. 

Be the antidote to dangerous, extremist, hateful vitriol.

Be the blueprint of progress for the nation to look to.

Remember: in moments of chaos in D.C., you can always look to California for calm resolve. 

California leaders across the state are ready to stand arm-in-arm. 

Governor Newsom and every single Constitutional Officer;  

Senator Padilla and Senator-elect Schiff;  

Democratic members of Congress; 

Pro Tem McGuire, Speaker Rivas, and the California Legislature; 

Mayors, supervisors, and city councilmembers from San Francisco to San Diego are ready to fight for our California values. 

For our people. For our environment.

For progress and justice.

And as necessary, we’re ready to take on the challenges of a second Trump Administration — together.

While a great deal of change is on the horizon…

California’s path to progress remains full steam ahead.

It may not always be linear. Progress so rarely is. 

It zigs and zags. Takes frustrating detours. Inches forward and backward and forward again. 

The detours and setbacks don’t define our progress.

Our commitment to forward momentum defines our progress. Defines us. 

It’s what we do next that will define us. 

If you’re feeling despondent today, remember that you’re not alone. 

In California, we’re not looking back. We’re not moving back. 

We’re California! We’ll meet any challenges head on and rise to the occasion.

As is so often said, as California goes, so goes the nation.

In the days and months and years to come, all eyes will look west. 

In California, they’ll see: we’re still moving forward.

Thank you. 

OAKLAND — California Attorney General Rob Bonta today announced the release of the updated Guide for Charities, which provides best practices for charitable organizations (including charities, charitable trusts, and other nonprofits), fundraising professionals, and charitable fundraising platforms that operate in California. The Attorney General has the primary responsibility for supervising charities and professional fundraisers who solicit on their behalf. Under Government Code section 12580 et seq., the Attorney General may investigate and bring legal actions against charities and fundraisers that misuse charitable assets or engage in fraudulent fundraising practices. 

“From providing food to families in need to helping dogs and cats find their forever homes, charities perform important functions throughout California. With our updated Guide for Charities, and through other outreach efforts, my office is committed to helping them operate legally,” said Attorney General Bonta. “At the same time, let there be no doubt that we will continue going after those who divert donations for personal use and otherwise commit fraud against generous California donors.”  

The Attorney General’s Registry of Charities and Fundraisers (Registry) administers the registration and reporting requirements set forth under Government Code section 12580 et seq. The Registry does this through its various programs, such as: Initial Registration, Registration Renewals, Delinquency, Dissolution, Professional Fundraising, Raffles, and Complaints. The Registry also maintains the Registry Search Tool for the public to research registered charitable organizations, fundraising professionals, and charitable fundraising platforms.  

The updated Guide for Charities is intended to help directors and officers of charities understand what is required of them under state law. The previous version of the Guide for Charities was published in June 2021. The Guide for Charities that is being released today contains important updates, including: 

• An overview of, and regulatory requirements for, charitable fundraising platforms (found in Chapter 9). Effective June 12, 2024, charitable fundraising platforms — or crowdfunding websites like GoFundMe, Meta, and PayPal and other online platforms that perform, permit, or enable solicitations for charitable donations through their platforms — are required to register with the Registry. 
• An addition of a section on “behested payments.” A behested payment generally occurs when monetary or in-kind donations are made at the request, suggestion, or solicitation of a public official for a principally legislative, governmental, or charitable purpose. The Political Reform Act requires a public official to report behested payments to the California Fair Political Practices Commission on Form 803.
• Now reflecting the Registry’s new name — it was formerly called the Registry of Charitable Trusts — and the renumbering of the regulations applicable to charities and fundraisers.

Over 109,000 charitable organizations are registered with the Registry. As of June 2022, registered charities reported total revenues over $473 billion, an increase of $69 billion from June 2021. Donation tips can be found here. 

The updated Guide for Charities is available here.

SACRAMENTO – California Attorney General Rob Bonta today announced the final regulations implementing Assembly Bill 488 (Government Code section 12599.9), a first-of-its-kind law governing charitable fundraising on internet platforms. The final regulations are the result of an extensive rulemaking process, and allow the Attorney General to properly supervise crowdfunding websites and other online platforms that perform, permit, or enable solicitations for charitable donations through their platforms. Most notably, starting on June 12, 2024, these charitable fundraising platforms are required to register with the Attorney General’s Registry of Charities and Fundraisers.

“There’s no denying that, in recent years, charitable giving has been increasingly taking place online. Internet platforms like GoFundMe, Meta, and PayPal all make it convenient for Californians to donate to or support their favorite charities, but that convenience can come at a cost,” said Attorney General Bonta. “With the final regulations that we are announcing today, my office will be better equipped to protect donors and charities, and ensure that donations are going toward their intended purposes.” 

The final regulations implement Government Code section 12599.9 requirements that charitable fundraising platforms and platform charities: 

• Register and submit annual fundraising reports to the Attorney General’s Registry of Charities and Fundraisers, with filings made available for public viewing.
• Provide conspicuous disclosures in their solicitations, intended to prevent public deception, confusion, and misunderstanding.
• Promptly issue tax donation receipts, when applicable.
• Promptly distribute donations to charities.
• Only solicit for charities that have provided prior consent, unless certain criteria are met that safeguard against harm to charities and the public.
• Only solicit for charities in good standing in California and with the IRS. 

A copy of the final regulations can be found here. More information on Government Code section 12599.9 and the regulations, including registration and reporting, is available here. AB 488 was sponsored by Attorney General Bonta and authored by Assemblymember Jacqui Irwin (D-Thousand Oaks). 

Coalition moves for permanent injunction against Cancer Recovery Foundation International and President Gregory Anderson  

OAKLAND – California Attorney General Rob Bonta joined the Federal Trade Commission (FTC) and a bipartisan multistate coalition of 10 attorneys general in filing a lawsuit seeking a permanent injunction against Cancer Recovery Foundation International, Inc. (CRF) and its president, Gregory Anderson, for operating sham charities that collected millions of dollars from donors but provided little monetary assistance to cancer survivors and their families. In the lawsuit, the coalition alleges that CRF filed false and misleading financial reports and conducted deceptive solicitations to consumers across the country by using telemarketing scripts, direct mailers, and pledge letters. These deceptive business practices were designed to profit Gregory Anderson at the expense of women fighting cancer. CRF also operates under the names of Women’s Cancer Fund, Pink Diamond Women’s Cancer Fund, New Era Cancer Research Fund, and Nutrition as Medicine. The coalition seeks a permanent injunction to ban the charity and its president from operating and prevent future violations of the law.

“Cancer Recovery Foundation solicited and misused generous donations from hardworking families – in California and across the nation – who wanted to help battle cancer, and support cancer patients and their families. In reality, the foundation’s president solicited donations unscrupulously to pay his salary, expenses, and benefits,” said Attorney General Bonta. "This type of behavior is unacceptable. Charities like Cancer Recovery Foundation that mislead individuals will be held accountable. The California Department of Justice is committed to protecting California's charity donors, beneficiaries, and organizations from the harm caused by deceptive charities." 

The Women’s Cancer Fund collected $18 million from generous donors between 2017 and 2022, promising donors that their donation would go directly to assist cancer patients with basic living expenses such as rent, utilities, and food for their children. Instead of using donors' contributions as intended, a large portion of the funds were used to benefit CRF's president, Gregory Anderson. CRF only spent $194,809, or roughly 1% of these funds on financial support to cancer patients. At the same time, Anderson paid himself a salary of $775,139 – nearly four times as much as CRF collectively gave to all the cancer patients it supported. In addition to his salary, Anderson also used donated funds for various costly expenses, such as hotels and travel. Meanwhile, Women’s Cancer Fund gave the vast majority of the funds it collected from donors, about 85%, to for-profit fundraisers that Anderson hired to make deceptive pitches on behalf of CRF. The Women’s Cancer Fund made misrepresentations to donors nationwide regarding its purported charitable programs. Women’s Cancer Fund lied to tens of thousands of generous donors about their charitable contributions.

CRF falsely claimed in its donor solicitations that their contributions were critically important and could help save women’s lives. It falsely fundraised by lying to donors stating that “50% of all money… goes to support women in treatment and recovery to overcome their financial difficulties.” Anderson solicited donations from donors despite knowing that only a small percentage of the funds would be spent on financially supporting women battling cancer. Anderson recruited and negotiated contracts with fundraisers who solicited contributions from donors. In numerous instances, Anderson signed contracts with fundraisers that specifically indicated that the fundraisers would receive 85% to 90% of total funds raised. Anderson approved and authorized fundraisers’ use of the scripts, pledge letters, and mailers with these misrepresentations included. In early 2020, Anderson also sent a handwritten letter to donors that he signed on behalf of Women’s Cancer Fund assuring donors that their donations would directly help thousands of women battling cancer with “basic living expenses.” Pledge letters made false promises and manipulated donors into thinking that their gifts were getting to cancer patients and their families. Instead, only about a penny of every dollar donated went to provide such support, while the overwhelming majority went to pay for-profit fundraisers and Anderson. 

Charities are required to report their donations and program expenses to the California Department of Justice, which include information about how much support a charity received from the public or other sources, how the charity is spending the money, and information on its assets and liabilities. The California Department of Justice works to regulate charities and the professional fundraisers who solicit on their behalf. The oversight protects charitable assets for their intended use and ensure that the charitable donations contributed by Californians are not misapplied and squandered through fraud or other means. Charities are required to register and file annual financial reports with the Attorney General’s Registry of Charities and Fundraisers. Donors are urged to research charities on the Attorney General’s website before deciding to donate.

In filing the lawsuit, Attorney General Bonta joins the FTC and the attorneys general of Florida, Indiana, Maryland, Massachusetts, North Carolina, Oklahoma, Oregon, Texas, Virginia, and Wisconsin.

The complaint is attached here.

SAN DIEGO – California Attorney General Xavier Becerra announced today a jury verdict in favor of the State against individuals who fraudulently solicited charitable donations under the pretext of assisting wounded veterans and their families and instead illegally enriched themselves with the donated funds. In April 2017, Attorney General Becerra filed a lawsuit alleging that the operators committed fraud against California donors.  Following trial, the jury awarded nearly $8.8 million to the state against defendants Matthew G. Gregory and spouse Danella J. Gregory, their adult children Matthew J. Gregory and Gina D. Gregory, and their business Gregory Motorsports. 

“These unscrupulous con artists exploited the generosity of Americans by falsely claiming to help our country’s wounded warriors and their families. Instead, they used our charitable donations for personal gain,” said Attorney General Becerra. “A jury of their peers has justly slapped down the Gregory family and their corrupt enterprise. But there are more sham charities out there plotting to defraud us. That’s why the California Department of Justice has ramped up its investigation and enforcement against suspect charities. We intend to hold them accountable before they prey on you.” 

In this case, the jury found that the defendants, as directors of Wounded Warriors Support Group and Central Coast Equine Rescue and Retirement, breached their fiduciary duty to act in the best interest of the two charities. Wounded Warrior Support Group, a nonprofit that purportedly supported military veterans and their families, is located in Carmel-by-the-Sea, California, and engaged in fundraising and raffle activities in Alameda County and throughout the State of California. Central Coast Equine Rescue and Retirement, a nonprofit with a mission to rescue abused and unwanted horses and educate the public on the horses’ care and neglect, operated out of Livermore, California, and Carmel-by-the Sea, California.

The jury found that the defendants breached their fiduciary duty by failing to use donated funds for charitable purposes for which the donations were sought. The filed complaint alleged that the defendants instead spent the donated proceeds for personal use, including shopping at Victoria’s Secret, paying off personal credit card debt, traveling, dining, and purchasing dressage equipment, admittance to traffic school, and other personal expenses. The jury also found that the defendants conducted misleading and deceptive fundraising by running illegal charity raffles in locations throughout California; breached their fiduciary duty to act in the best interest of the charities by filing false reports with the Attorney General’s Office; violated the Attorney General’s Cease and Desist Orders; engaged in self-dealing transactions; gave improper loans to directors; and operated the two charities without keeping corporate records and minutes. Against the non-director defendants, the jury found that they aided and abetted the directors in their unlawful acts to advance their own interests and financial gain. 

The jury found the defendants acted illegally a total of 3,430 times and awarded damages to the state as follows:

• Against Matthew G. Gregory: $1.35 million for breach of fiduciary duty; $1.35 million for deceptive and misleading solicitations; $641,528 for self-dealing transactions; and $500,000 for unjust enrichment.
• Against Danella J. Gregory: $500,000 for unjust enrichment. 
• Against Matthew J. Gregory: $1.35 million for breach of fiduciary duty; $1.35 million for deceptive and misleading solicitations; and $562,782 for unjust enrichment. 
• Against Gina D. Gregory: $251,129 for aiding and abetting a breach of duty; $2,700 for deceptive and misleading solicitation; and $751,129 for unjust enrichment. 
• Against Gregory Motorsports: $146,000 for aiding and abetting a breach of duty. 

In addition, the court issued a separate judgment for the involuntary dissolution of both charities as well as an order permanently prohibiting the individual defendants from operating or serving on the board of any California charity and from soliciting charitable donations or holding charitable raffles. 

Kevin Manz Allegedly Embezzled over $1 Million from Local Charitable Organizations

SACRAMENTO - Attorney General Kamala D. Harris today announced the arrest of Kevin Manz, 59, on felony charges of grand theft for embezzling money from multiple charitable organizations in the Sacramento area. According to the criminal complaint, filed today in Sacramento Superior Court, Manz illegally directed funds from Cathedral Pioneer Church Homes Inc., Cathedral Pioneer Church Homes Foundation, and the Pioneer Foundation to personal bank and business accounts and used the funds for personal expenses such as jewelry and cars.

“Preying on charities that benefit senior citizens is despicable behavior that will not be tolerated,” said Attorney General Harris. “My office will continue to prosecute those who embezzle and misuse charitable funds for personal gain. I thank the California Department of Justice Special Agents for their diligent investigative efforts in this case.” 

Manz is a licensed attorney in Kansas who gained the trust of charity boards and church congregations in the Sacramento area.  He convinced multiple charitable organizations, including foundations that provide housing for seniors, to allow him to manage their financial accounts.  According to the criminal complaint, he then embezzled over $1 million from three charitable organizations.

The arrest came after a 5-month investigation by the California Department of Justice’s Bureau of Investigation and the Tax Recovery and Criminal Enforcement Task Force.  The case will be prosecuted by the Attorney General’s Financial Fraud and Special Prosecutions Section.

A copy of the felony complaint is attached to the online version of this press release at oag.ca.gov/news.

English

LOS ANGELES - Attorney General Kamala D. Harris, along with two local District Attorneys, today filed civil lawsuits against two car donation charities for violating state law by misrepresenting their charitable programs and improperly profiting from ostensibly charitable activities.

In partnership with the Los Angeles County District Attorney’s Office, Attorney General Harris filed suit against People’s Choice Charities; and in partnership with the Ventura County District Attorney’s Office, the Attorney General filed suit against Cars 4 Causes. 

Car donation organizations are 501(c)(3) tax-exempt organizations that solicit car donations (often through extensive advertising), sell the vehicles, deduct all their costs, and then use what is left to fund a charitable program, which they choose or allow the donor to choose.  

“These charities exploited the goodwill of generous donors by misrepresenting their charitable programs, misappropriating donations and accruing excessive administrative costs,” said Attorney General Kamala D. Harris. “These lawsuits hold People’s Choice Charities and Cars 4 Causes accountable for breaking the law and give California consumers greater confidence that their donations go toward the intended charitable cause.”

Los Angeles-based People’s Choice Charities (PCC) claimed that 100% of the net proceeds from the sale of donated cars would go to the donors’ chosen charities. As the lawsuit filed today alleges, 97% of the donations were spent on administrative costs, such as towing and car repairs, and advertising.  PCC claimed that towing was free and that PCC employs experienced staff to repair and sell the cars at minimal cost.  In reality, PCC charges the charities for towing expenses and has no repair staff; instead they pay outside vendors hundreds of thousands of dollars to do this work.  After PCC deducts its numerous and undisclosed expenses, only a tiny fraction of the vehicle’s sale price is forwarded to the donor’s chosen nonprofit.

According to audits conducted by the Attorney General’s office, from 2007 to 2012, PCC reported that it had donated over $700,000 to other nonprofits, while actually only donating $174,000. To increase their inventory, PCC also developed a “cash back” program whereby vehicle donors could receive money in return for their “donation,” effectively transforming a charitable organization into an unlicensed used car dealership in violation of state law.

Ventura-based Cars 4 Causes claimed it “worked smarter” to “get the most money for charity.”  In reality, as the lawsuit filed today alleges, C4C used 87% of its donations to pay for items such as advertising and administrative costs, including staff salaries, while only 13% was directed to actual charities. From 2009-2014, C4C reported that $15.9 million was donated to charity.  In reality, C4C only gave $5.4 million to charity—and many of the charities designated by donors received nothing at all.  During this time, C4C denied many requests from individuals in need seeking a car, including single mothers, college students, and seniors, all while paying thousands towards staff salaries and millions to advertisers.

C4C took money from the very charities it promised donors that it would support.  According to C4C’s own accountings, it misappropriated about $2 million from thousands of charities, including over $600,000 that should have been given to charities serving the sick and providing medical research, $250,000 to children’s and education charities, $100,000 to veterans’ organizations, $230,000 to religious organizations, and $200,000 to charities serving the poor, among others. 

In order to ensure that charitable donations are spent as intended, Attorney General Harris urges donors to donate directly to the organization they want to benefit.  If a car donation organization is used, call the beneficiary organization you designated to confirm that they received your donation.  If they did not, call the car donation organization and demand that they forward your donation.

Attorney General Harris has made it a priority to focus on enforcement of charitable misconduct.  For example, in May of 2015, the California Attorney General jointly filed with state law enforcement partners in every other state in the nation, the District of Columbia, and the Federal Trade Commission, a federal lawsuit against four cancer charities Cancer Fund of America, Children’s Cancer Fund of America, Cancer Support Services and The Breast Cancer Society and their operators, who allegedly scammed more than $187 million from consumers throughout the country.  In the eight-count complaint, the FTC and all the plaintiff states charged the defendants with misrepresenting that contributions would be used for charitable purposes, misrepresenting specific program benefits, misrepresenting revenue and program expenses related to international Gift in Kind, and misrepresenting that the primary focus of their reported programs was to provide direct assistance to individuals in the United States. 

The Attorney General's office today released a report summarizing the results of solicitation campaigns conducted in 2014 by commercial fundraisers in California.  The report is prepared from information contained in the annual financial disclosure reports filed by commercial fundraisers for 2014 and includes statistics for donations of both cash and used personal property (such as clothing and vehicles) for the benefit of charity.  The report shows that thrift stores and car donations provided significantly less donations to charities than other solicitation campaigns.   View the report here: https://oag.ca.gov/sites/all/files/agweb/pdfs/charities/publications/2014cfr/cfr2014.pdf?

Consumers can file a complaint with the Department of Justice by using the following form: http://oag.ca.gov/contact/consumer-complaint-against-business-or-company.

Copies of the complaint are attached to the online version of this release at http://oag.ca.gov/news.