As if veterans and their supporters didn’t have enough to worry about, fake charities exist that are scamming people out of money. In particular, one of these false charities collected over $11 million in donations over 2 years in Ohio.
This charity called “Help The Vets” operated out of Florida, but when the Ohio Attorney General’s Office looked into their finances, they discovered that less than 5% of the donations were actually going to charity. The rest was being pocketed by the founder and employees.
What is being done to combat this?
The Federal Trade Commission is stepping in to investigate this charity and eight others like this.
As of now, “Help The Vets” and its founder Neil Paulson Sr. has been banned by the FTC from collecting money for charitable causes
As punishment, the Ohio Attorney General Office is making the company pay all of its remaining funds (a total of $1.75 billion) to an actual charity.
These Scams Hurt the Innocent
These fraudulent charities give a bad name to all veteran charities and make people less open to donating to them.
The Miami Valley Military Museum is only one example of innocent charities feeling the effects of scammers. People have told them that they would not be willing to donate to the museum because they didn’t trust that the money would go to good causes.
They fear there will be a funding shortage resulting from all of the charity scams for veteran nonprofits who really need the support. With the government really taking these fake charities seriously, donors are going to have less to worry about when it comes to making contributions.