The Women’s Cancer Fund managed to accumulate an impressive $18.3 million by promising to provide assistance to patients in need. Donors were led to believe that their contributions would go towards covering the living expenses of women undergoing cancer treatment. However, a recent lawsuit filed by the FTC and 10 states claims that the majority of the funds were actually used to compensate the charity’s president and for-profit fundraisers.
A federal lawsuit, filed on March 11, claims that the Women’s Cancer Fund engaged in deceptive practices and misleading claims while raising funds from 2017 to 2022. According to the lawsuit, the majority of the donated money, instead of being used for its intended purpose, was allocated towards the president’s salary of $775,139 and paid to for-profit fundraisers, totaling $15.55 million. Additionally, the funds were allegedly used to cover overhead expenses.
According to the lawsuit, the Women’s Cancer Fund received a donation of $18.25 million, but only a mere $194,809, which is approximately one percent, was actually used to directly support women with cancer.
Charities typically aim to minimize their overhead expenses, with the general expectation being that only a small portion of their budget, typically less than 25%, should be allocated to operating costs. To be deemed highly efficient by CharityWatch, nonprofits must meet this criterion. However, the lawsuit claims that the Women’s Cancer Fund misled donors through their marketing campaigns, causing them to contribute funds under false pretenses.
According to the lawsuit, the Women’s Cancer Fund, also known as Cancer Recovery Foundation International, utilized the donations for various purposes, including covering expenses such as hotels and travel.
“The Cancer Recovery Foundation International and Anderson have severely exploited the kindness of American donors,” expressed Samuel Levine, the director of the FTC’s Bureau of Consumer Protection, in a statement released earlier this month. “The FTC is determined to vigorously pursue such unlawful behavior, as it not only harms donors but also deprives genuine charities of essential funds. We deeply appreciate the collaboration of our state partners in this endeavor to safeguard the public.”
The lawsuit includes the following states: California, Florida, Massachusetts, Maryland, North Carolina, Oklahoma, Oregon, Texas, Virginia, and Wisconsin.
CBS MoneyWatch reached out to the Women’s Cancer Fund for comment, but they did not respond immediately.
