There are also thieves and crooks out there raising a lot of money, pretending it's for something good. There have been cases where foundations are set up as fronts. These foundations prey on public sympathy to raise money for heart disease, cancer and other diseases. They raise huge sums of money, but rather than help people, they line their own pockets with the proceeds. The law does not provide for much scrutiny of tax-exempt organizations.
Few states have the resources to carefully scrutinize charitable groups.
In Florida, the United Children's Foundation and the Florida Children's Welfare Association Inc. did not even register with the state. But both raised thousands of dollars to help sick, dying and abused children, telling donors that they would send the children to amusement parks. As McElroy sees it, the problem is not so much what is illegal as it is what is legal. As long as you are benefiting an organization, you haven't really defrauded anyone. This material shall not be published or redistributed directly or indirectly in any medium.