Is There Anything More Sickening Than a Cancer Charity Scam?

But in an ocean full of scammers, people like Russo, Smith, Streng and Reed are relative minnows when it comes to the amount of money stolen. Among the whales: The FTC in March joined 10 states in filing a lawsuit against Cancer Recovery Foundation International (also known as Women’s Cancer Fund) and founder Greg Anderson. The lawsuit alleges that the defendants collected $18 million from donors between 2017 and 2022 while providing less than $200,000 in financial support for cancer patients — just one cent for every dollar donated.

“Women’s Cancer Fund … did not operate as a legitimate charity whose primary purpose was to further its charitable mission. Instead, it was operated by Anderson primarily to benefit his own financial interest,” the lawsuit alleges.

Cancer scams: small in number, big in impact

When a charity is reported to have engaged in misconduct or questionable practices, Charity Navigator posts an alert on the organization’s profile. “Typically, we have anywhere from 400 to 500 organizations that have been [flagged] through our alert system,” says Scally, who adds that only the most serious alerts involve fraud. “So, in a universe of more than 1.5 million nonprofits, it’s a pretty small number that are outright scams.”

“It’s not a common thing,” echoes Miles, whose organization has only been defrauded twice in its 11-year history. “It’s just that when you hear about it, it’s so awful. So, everybody freaks out.”

Because cancer charity scams are so egregious and draw so much attention, they don’t just victimize donors. They also victimize legitimate charities. “When there’s a scam, fraud becomes top of mind. And that can be quite damaging to the nonprofit sector because people don’t feel as confident in giving,” Scally says. “So, a problem that involves a small number of organizations becomes a much bigger issue.”

Trust in nonprofits is declining, confirms Independent Sector, a coalition of nonprofit organizations, foundations and corporate philanthropy programs. In 2023, only 52 percent of Americans said they trust nonprofits to do what is right, which is down 4 percentage points from 2022, according to its 2023 Trust in Civil Society report.

For legitimate and reputable cancer charities, that’s troubling. “The donor community is our lifeblood. It’s our fuel,” says Sarah Rosales, senior vice president of corporate partnerships and direct marketing at breast cancer charity Susan G. Komen. “Without the support of donors, we wouldn’t be able to offer the support to patients that we offer.… And without donor dollars, we certainly wouldn’t be able to fund the breakthrough research that we’re working on that will make a difference for generations to come.”

GoFundMe's Response

GoFundMe spokesperson Jalen Drummond responded to AARP in an emailed statement: “Since 2010, the GoFundMe community has raised more than 3 billion dollars to help those affected by cancer. Being a safe and trusted place to give and receive help is our top priority. Misuse is extremely rare on our platform, and we have a team of Trust & Safety experts who work around the clock reviewing and vetting fundraisers and implementing our terms of service. It’s also important to know that the platform is backed by the GoFundMe Giving Guarantee, which protects donors and their generosity. We guarantee a full refund in the rare case something isn’t right. You can learn more here.

Additionally, If any donor has a concern about a particular fundraiser, they can click the ‘Report Fundraiser’ button on the campaign page to alert one of our specialists to investigate. We take these reports very seriously.”

How to avoid cancer (and other charity) scams

Research: Look up organizations on charity evaluation websites like Charity Navigator and GuideStar. GuideStar awards bronze, silver, gold or platinum Seals of Transparency based on how much information organizations share with donors. Charity Navigator, meanwhile, awards zero to four stars based on performance in key domains like impact and accountability. “As long as they align with your passions and values, you can give with confidence to organizations that have three or four stars, knowing that they’re a trustworthy, impactful organization,” Scally says of Charity Navigator. It’s also a good idea to consult GreatNonprofits for reviews from donors, volunteers and board members “to get a sense of what other folks … are saying about the organization.”

Use your credit card: Avoid making donations by cash, check or bank transfer — just in case. “If anybody is asking for bank credentials, that’s a red flag, as well,” Scally says. “I recommend donating through a more protected method, such as your credit card instead of your debit card. That way, there’s fraud protection baked in if you do run into any sorts of issues.”

It’s a little trickier when you are considering whether to donate to an individual through a crowdfunding site like GoFundMe. Amy Nofziger, AARP’s director of fraud victim support, says that if you don’t know the intended recipient but your friend posted their story on social media, “ask your friend, ‘Do you know them? How do you know them?’ ”

GoFundMe offers advice for determining whether a fundraiser is trustworthy, including asking:

• How is the organizer related to the intended recipient of the donations?
• What is the purpose of the fundraiser, and how will the funds be used?
• Are direct family and friends making donations and leaving words of support?
• Is the intended recipient in control of the withdrawals? If not, is there a clear path for the funds to reach them?

GoFundMe encourages donors to message the organizer if they have questions by clicking Contact next to the organizer’s name.

The state of Michigan’s attorney general’s office also offers tips for avoiding scams on GoFundMe and “other online fundraising sites including DonorBox, Fundly, Donately, GoGetFunding, FundRazr, and PayPal.” Among them: “Check how the organizer or beneficiary is connected to the fundraiser” and “search the website for their cause and reviews.” 

It suggests looking for red flags, such as “organizers who have new social media accounts or less than 40 ‘friends’ ” and/or “won’t respond to direct messages or provide vague answers to your specific questions.”

Report scams: If you suspect that a fundraiser on GoFundMe is fraudulent, forward the information to account-security@gofundme.com.

Report charity scams to your state’s consumer protection office and the FTC at reportfraud.ftc.gov.