A legal action has been taken against the Women's Cancer Fund for allegedly misusing the $18.3 million it raised between 2017 and 2022. The fund promised to assist cancer patients with living expenses but, according to the lawsuit filed by the FTC and 10 states, most of the donations went towards the charity's president's salary and for-profit fundraisers.
The lawsuit, filed on March 11 in federal court, claims that only about one percent of the total donations was used to directly support women with cancer. The bulk of the funds, including $15.55 million, allegedly went to pay for-profit fundraisers and cover overhead costs.
CharityWatch recommends that nonprofits spend less than 25% of their budget on operating costs to be considered highly efficient. The Women's Cancer Fund's alleged mismanagement of funds has raised concerns about the deceptive nature of its marketing practices, potentially misleading donors who believed their contributions would directly benefit women in need.
Sources: Maryland Attorney General, CharityWatch
The Women's Cancer Fund, also known as Cancer Recovery Foundation International, also used the donations to pay for expenses like hotels and travel, the lawsuit alleges.
"Cancer Recovery Foundation International and Anderson abused the generosity of American donors in the most egregious way" said Samuel Levine, director of the FTC's Bureau of Consumer Protection, in a statement earlier this month. "The FTC is committed to aggressively pursuing such illegal conduct, which hurts donors and deprives legitimate charities of needed funding. We are grateful to our state partners for joining in this effort to protect the public.
The states that joined the lawsuit are: California, Florida, Massachusetts, Maryland, North Carolina, Oklahoma, Oregon, Texas, Virginia and Wisconsin.
The Women's Cancer Fund did not immediately respond to CBS MoneyWatch's request for comment.
