Group Agrees To Disclose Where Charitable Donations Go
POSTED: 6:19 pm EST February 19,
2009
UPDATED: 6:49 pm EST February 19,
2009
CLEVELAND -- Action is being taken following a 5 On Your Side investigation that exposed how millions in donations never reached disabled veterans.Investigator Ron Regan reported that the phone solicitors will have to come clean about where the money is really going.The agreement spells out how consumers will now be much more informed about where their money is going.The NewsChannel5 investigation found that donations going to a local charity called the Disabled Veterans Association was really going to a fund-raising operation known as CDG, Civic Development Group.As a result, Ohio's attorney general took CDG to court. Civic Development Group has agreed to clearly disclose CDG as the fundraiser and identify itself as a professional solicitor.Plus, it is required to tell consumers the percentage of donations actually going to charity when asked.Civic Development Group did not admit to any wrongdoing but agreed to pay $35,000 in fines.CDG raised $9.4 million for disabled veterans in 2006 and pocketed $8.7 million. The charity itself paid its director another $92,000 of the money and hasn't returned NewsCHannel5's phone call.
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