Fundraiser sued in Iowa for making false claims of ties to kids' charity

woman working at a call centerAn Indiana-based fund-raising company has agreed to stop asking for money from Iowa residents as part of a $10,000 settlement with the Iowa Attorney General's office.

The Campaign Center and its president, Jonathan Wright, conduct telemarketing and fund-raising services for non-profit organizations. The suit says the company is not registered in Iowa as a professional commercial fundraiser, a legal requirement.

The lawsuit says a Campaign Center telemarketer called on behalf of the Children's Charity Fund, a Florida-based organization that helps children with disabilities, but gave a false impression she was directly associated with the company, and that the donation was for a holiday drive, when in reality donations are collected year-round.

Further, the consumer was told the funds would be used in Iowa and that more than half the money would go to the charity. Based on the financial agreement between the Campaign Center and Children's Charity Fund, only about one cent from every dollar goes to disabled children.

The Campaign Center as part of the agreement admits to no wrongdoing, but any further violations in Iowa will result in civil penalties.

The attorney general. also recently re-proposed a Charitable Solicitation Act for the state, which would allow consumers to search an online database for reputable charities and would require organizations to disclose the portion of funds that goes to actual charity work.

Increase your money and finance knowledge from home

How Financial Planners go Grocery Shopping

Learn to shop smart and save.

View Course »

Understanding Credit Scores

Credit scores matter -- learn how to improve your score.

View Course »

Add a Comment

*0 / 3000 Character Maximum