The Women’s Cancer Fund managed to raise a staggering $18.3 million with the promise of aiding patients and assisting in 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 these funds were diverted towards the charity’s president and for-profit fundraisers, rather than reaching the intended recipients.
A lawsuit was filed on March 11 in federal court, accusing the Women’s Cancer Fund of raising funds through deceptive and misleading claims. According to the lawsuit, the majority of the donations received between 2017 and 2022 were allegedly used to pay the charity’s president, Gregory Anderson, a salary of $775,139, and for-profit fundraisers a total of $15.55 million. Additionally, the funds were purportedly used to cover overhead expenses.
According to the lawsuit, the Women’s Cancer Fund received a total donation of $18.25 million. Shockingly, only approximately one percent of this amount, which equals $194,809, was actually used to directly assist women battling cancer.
While charities do have overhead expenses, it is generally considered a good practice for them to allocate only a small portion of their budget towards these costs. In fact, CharityWatch rates nonprofits as “highly efficient” if they spend less than 25% on operating costs. The lawsuit claims that donors who generously donated to the Women’s Cancer Fund were misled by the organization’s marketing efforts.
According to the lawsuit, the Women’s Cancer Fund, which is also referred to as Cancer Recovery Foundation International, allegedly utilized the donations to cover various costs such as accommodations and transportation.
“Samuel Levine, director of the FTC’s Bureau of Consumer Protection, strongly condemned Cancer Recovery Foundation International and Anderson for exploiting the kindness of American donors in a highly unethical manner,” stated in a recent press release. Levine emphasized the FTC’s determination to take decisive action against such illegal behavior that not only harms generous donors but also deprives legitimate charitable organizations of vital funding. He expressed gratitude to the state partners for their collaboration in safeguarding the public’s interests.
The states that filed the lawsuit include California, Florida, Massachusetts, Maryland, North Carolina, Oklahoma, Oregon, Texas, Virginia, and Wisconsin.
