Who is responsible for fraud in a Non Profit Organization?

How can you tell if a non-profit organization is legitimate?

• I'm looking at an organization that says it is non profit but it has given me all the red flags of a scam. For starters, they had a downloadable volunteer application that I received last year with an address on it. I went to the address listed at the bottom of the paper and I ended up in a designer showcase in a warehouse. I was SUPPOSE to end up at a dog rescue. Furthermore, I emailed the 'rescue' via their website twice last year and never received a response. I called the number they provided and it takes you to an automatic voicemail NO MATTER WHEN you call. I found the 'official' Facebook page for the rescue last month and emailed the so-called president. She said she had never gotten my emails from the year before and that there is NO physical shelter, that all the dogs are in private foster homes. However, if you Google the rescue, it gives you 3 different addresses to the rescue downtown of where I live. She said the phone is a voicemail system, and that because they do not have a physical address, they do not have a phone system. She was insistent that they need volunteers and foster homes, and I asked her how can one volunteer if the dogs are all in private foster homes? I also stated I did not see why emailing the website is listed as an option if it is faster to receive a response if you email her (the president of the so-called rescue) directly. According to their website, they have been struggling to make payments for medical bills and such since September of 2009. They stopped taking dogs, and said they would resume taking dogs once (this is directly off their website): All adoptable dogs currently in foster care will be adopted out to permanent homes. All of our record keeping and bookkeeping will be caught up to date and our public financial records updated. We will conduct a fund raising campaign, pay off current bills and bank money to cover several months of regular expenses. We will reorganize our operations in a way that puts less of a personal and financial burden on key people while efficiently involving more volunteers. And this is how they said one could help (again, off their website): Refer potential adopters to our website. Make a tax-deductible donation* to help us get our bills paid off. Complete a volunteer application and include a list of your skills so we can put you to work. I have looked at their website, and they are asking for donations via Google Checkout and they have a shop set up. They claim they understand it is a recession, but they are overpricing items in their shop. This comment is from someone DIRECTLY off their website. The QUESTION was never answered by staff of this organization: I am hoping that very soon I will be able to adopt one from you guys, so I will keep checking in!!! and question, the “shop”, does that money go to helping to feed and house the dogs? The question was ignored. An above questioned was addressed with "download an application and send it to us!" This is from my email I sent to the "president': It also would appear that you have only participated in contests to receive LARGE amounts of money, and that you have done nothing to raise money on a smaller scale, other than clicking on the "donate" button on your website. I haven't heard of this organization in the street, asking people to help them raise money. I have seen the ASPCA stand in the street, asking for people to sign their petitions and I have seen the Gay Rights Community asking for signatures as well. When was this organization in the street, making themselves known to the public? My other concern is that it does not sound like there accurate record or book keeping. It sounds like right now it is very disorganized, and has been so since September 2009. People are not going to support a disorganized organization that sounds completely unprofessional and like it is run by a bunch of teenagers. I received an email from her today that said: We have need for people to work on our website, walk dogs in foster care, do flyers, man booths at events, make phone calls, do home visits, etc. You seem to have so many assumptions about our organization that are unfortunately false or misguided. If you would like more detailed and correct information we can set up a call. If they are as active as they claim to be, they would update their website and twitter more often than they do. It appears the ONLY time they are active is when there is some large charity donation giveaway, in which they beg people to vote for them to win the money. They are NOT listed under the Better Business Bureau's website under charity. However, on their website they have this written: ----- incorporated as a not-for-profit corporation under the Not-for-Profit corporation law of New York State and is a federal 501(c)(3) non-profit corporation. After reading all of this, do you think this organization is legit? A

• Answer:

  First, check your state's Department of State to find out if the organization is properly incorporated. If they don't have a record, it is not a legitimate organization. Look for a state-issued charitable solicitation license there too. http://www.usa.gov/Agencies/State_and_Territories.shtml Then you can check GuideStar.org to see their financial filings. You have to register, but it's free. http://www2.guidestar.org/Home.aspx If nothing is there, report them to your state. It is illegal to solicit money from the public without a state-issued solicitation license. And they only give those to properly constituted nonprofit corporations with IRS tax exempt status They can be forced to return every penny they've collected AND each person involved can be fined up to $2500 AND each person can spend up to a year in jail. I've been a volunteer, staff, manager, board member, board president, and consultant to nonprofits for more than 30 years and this crap REALLY pisses me off.