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-   -   Misuse of charitable funds? (https://www.askmehelpdesk.com/showthread.php?t=576622)

  • May 15, 2011, 11:34 PM
    lovemydog1221
    Misuse of charitable funds?
    Hi! I'm an animal lover, and recently donated to a 501c3 (along with many other people) to help buy heartworm medication for 2 rescued pit-bulls. The director of the rescue recently notified us that the foster family that was supposed to be caring for the dogs spent literally all of the money on things like rawhides, chews, dog beds, and even kept some for herself (siting 8.00 per day, per dog for "foster care boarding fees."). Now, there is no money left for the heartworm medication, the 501c3 has taken the dogs from that foster and is relocating them to another, but we are all devastated, and angry. We were under the impression that our money was going to buy them medication. Can the 501c3 group sue or take any sort of legal action against the foster home to recover the money?
  • May 16, 2011, 03:53 AM
    ScottGem

    Its possible. It depends on the terms of the donation. F the donation specifically state3d it was to be used for meds, then not only might they be sued, but they may be subject to criminal prosecution.
  • May 16, 2011, 05:03 PM
    ebaines

    Just to clarify something - you as a donor were under the impression that your donation would go for the specific purpose of heartworm medication for 2 dogs, but you relied on the charity's representation of that, right? Whether the charity knew or should have known that the dogs owner was going to use the money for something else is unclear here. I would suggest that there were several mistakes here:

    1. The charity that you donated to should have required the foster owners to sign a contract that specified that the money they would receive from the charity would be used for a specific purpose. Did they? If not, why not?

    2. If the charity represented to you that your donation would be used for a specific purpose over which they really had no control (due to the lack of a contract as above), then you as a donor have a case against the charity. But you have no case against the foster family because you had no contract directly with them.

    Unfortunately you as as donor have no case here, but the charity may have a case if they had a contract or some form of letter of intent that the foster family had agreed to and failed to meet.
  • May 16, 2011, 06:01 PM
    Fr_Chuck

    I am confused why the 501C did not just buy the medication theirself, But if the charity gave the money to the family with specific instructions to be used only for the medication, then the 501C could sue the family. But I doubt it will happen, depending on the written agreement, there could even be criminal charges for fraud

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