In 1987, James T. Reynolds started a new charity called the Cancer Fund of America. It told donors it was paying for pain medication for children and hospice care for terminally ill patients, and eventually branched into several other charities.
But in a filing yesterday, the Federal Trade Commission says that was all a sham. Less than 3 percent of the money raised actually went to patients, according to the filing, while almost $200 million was spent on luxury vacations, cars and tuition for the founder's family and friends.
Here & Now's Robin Young talks with Suzanne Perry of the Chronicle of Philanthropy about the ripple effects this case is having in the charity world.
Resources for checking the credibility of charities:
- Suzanne Perry, senior editor at the Chronicle of Philanthropy. She tweets @copsuzanne.
This segment aired on May 20, 2015.