America’s Top 7 Worst Charities — And How They Siphon Off Your Donated Money

Think your donation is going to a worthy cause? Think again.

Watchdog organizations say no more than 35% of donations should go to fundraising costs — i.e. good charities should not spend more than 35 cents to raise a dollar. However, since there is no standard for how much should be spent on direct cash aid, America’s worst charities spend more than 80 cents of every dollar raised on fundraising.

A yearlong investigation by The Tampa Bay Times and The Center for Investigative Reporting has revealed that the 50 worst charities in the United States raised more than $1.3 billion over the past 10 years, but less than 4% of that donation went directly to terminally ill children, burn victims, cancer patients, diabetes research, crime victims, veterans, police or firefighters.

Collectively, the 50 worst charities in the United States paid their solicitors nearly $1 billion of that $1.3 billion. According to CNN, if that money had gone to charity, it would have been enough to build 20,000 Habitat for Humanity homes, buy 7 million wheelchairs or pay for mammograms for nearly 10 million uninsured women.

Here are America’s worst charities:

1. Kids Wish Network

Kids Wish Network is a 501 non-profit organization that grants wishes to children with life-threatening medical conditions. Nonetheless, in 2008, Charity Navigator gave “the creator of happy memories” zero out of four stars in its “efficiency rating,” based on how much money is spent on fundraising in comparison to charitable activities. In addition, the American Institute of Philanthropy gave it a failing “F” grade. In 2013, the TBT/CIR investigation named Kids Wish Network “the worst charity in the nation,” based on cash paid to solicitors in the last decade.

Every year, Kids Wish Network raises millions of dollars in donations in the name of dying children and their families. Every year, it squanders almost every penny.

According to the TBT/CIR investigation, Kids Wish Network spent less than 3 cents out of every dollar raised on wish-granting. The charity not only channeled nearly $110 million donated for sick children to its corporate fundraisers, it paid its founder Mark Breiner and his own companies at least $4.8 million in salary and fees over the years.

Ex-employees were not surprised by the ranking. Rhonda Erlo, who worked as a wish coordinator for about a year, said:

“I realized this was more of a money, money, money business than a children’s organization. There are better organizations people can give their money to.”

2. Cancer Fund of America

Cancer Fund of America (CFA) claimed to provide direct financial aid and other support and services to financially indigent cancer patients, but instead, spent the overwhelming majority of donations on its operators, families and friends, and fundraisers.

According to a complaint filed by the Federal Trade Commission, attorneys general and secretaries of state of all 50 states, the family behind CFA built a network of “sham charities” that bilked more than $187 million from donors. The complaint also alleged that donations intended for the sick paid for “extravagant insider benefits”, including cars, luxury cruises, college tuition, gym memberships, jet ski outings, sporting event, concert tickets, dating site memberships, and trips to Las Vegas and other tourist destinations.

In March 2016, CFA and its affiliated charities were dissolved, and their presidents were banned from profiting from any charity fundraising in the future.

3. Children’s Wish Foundation International

Children’s Wish Foundation claims to “enrich the lives of seriously ill children through wishes, educational and entertainment programs.” However, the charity, which mimics the mission and charity name of the well-established Arizona-based Make-A-Wish Foundation to fool donors, spent nearly $6 million for services from “professional fundraisers” in 2010, but only about $3.6 million granting wishes and donating gifts to terminally ill children in the same year.

4. American Breast Cancer Foundation

Phyllis Wolf started the American Breast Cancer Foundation in 1997 to raise funds for the research of breast cancer and supply free mammograms for women who are unable to afford them. In its initial years, more than a half dozen professional fundraisers were paid nearly 75 cents of every dollar raised. When her son Joseph Wolf formed a telemarketing company, the American Breast Cancer Foundation paid nearly $18 million between 2003 and 2010 to the son to raise donations for his mother’s charity. In June 2010, Phyllis Wolf was forced to resign and the charity terminated the contract with her son. In January 2011, American Breast Cancer Foundation ended all telemarketing contracts.

5. Firefighters Charitable Foundation

The Firefighters Charitable Foundation was created to financially assist fire and disaster victims. But today, the charity pays its for-profit professional solicitors nearly 90 cents of every dollar raised.

6. Breast Cancer Relief Foundation

The Breast Cancer Relief Foundation claims to “serve the unmet needs of individuals with breast cancer and other serious illness through education, detection, prevention medical relief and research support”. But according to the IRS records, the Foundation is one of the nation’s most wasteful charities. 70% of the nearly $64 million raised in the past 10 years was paid to professional fundraisers. Just over 2% of donations raised were given directly to hospitals or to women in need of breast cancer screenings.

7. International Union of Police Associations, AFL-CIO

The International Union of Police Associations was formed to provide financial assistance to the families of fallen police officers. But the TBT/CIR investigation found that of the $57 million in donations given by the public over the past decade, more than 72 cents of every dollar was spent paying professional fundraisers. Less than half of 1% — about $28,000 a year — was spent on survivor benefits.

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