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Charity Fraud

CHARITABLE organizations solicit funds from the public for philanthropic goals such as seeking cures for diseases, or aiding the families of slain police officers. Fraud occurs when donations are solicited in a deceptive manner or are used for purposes never intended by the donors. Charities are also subject to the kinds of fraud that plague all business organizations, such as embezzlement and misappropriation of funds by executives.

It is not always easy to establish and prosecute charity fraud. All scholars would agree that money solicited by persons or groups that are not legitimate charitable organizations would constitute charity fraud, but the question of fraud is complicated when considering charities that use, for example, a very high percentage of donations for administrative costs or additional fundraising ...

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