In 2009, the Federal Trade Commission (FTC) announced a law enforcement sweep called “Operation False Charity.” In this effort, FTC is joined by 49 States in bringing 76 enforcement actions against 32 fundraising companies, 22 non-profits or purported non-profits on whose behalf funds were solicited, and 31 individuals. The FTC also released materials to assist consumers in recognizing and avoiding charitable contribution fraud.

The enforcement actions involve complaints and proposed settlement orders against defendants who allegedly tricked consumers into giving by falsely claiming that the contributions would support police, fire fighters, and military families, and by misleading consumers about how much of the contribution would be contributed to those in need.

While this law enforcement effort generally targets “false charities,” true charities should nonetheless take this initiative as a reminder to continue to be extremely vigilant about their methods of solicitation and to provide adequate disclosures about the direction of funds raised.