New York State Attorney General Eric Schneiderman is going after a local breast cancer charity for stealing most of the $9.1 million it has collected over the past five years. He claims they used the money as a personal slush fund, with little of it actually going to the charity work they were claiming.
The Attorney General's office is suing The Coalition Against Breast Cancer of St. James and its fundraising arm, Campaign Center Inc., for spending only $364,000, or less than 4% of its money on breast cancer services. The complaints, regarding violations of state not-for-profit and charitable solicitation laws, were filed last week in Suffolk State Supreme Court.
The suit alleges that the funds were used to pay salaries to workers who had other jobs. They were provided with retirement benefits, health benefits, and personal technology like Blackberry cellphones. Approximately 85% of the money raised by Campaign Center was stolen. According to CharityWatch.org, the least egregious charities spend 75% of their revenues on their programs. This charity was given a grade of "F."
The alleged 2009 figures are instructive. Only $57,481 was handed out in grants -- far less than the $73,500 salary that went to director of development Debra Koppleman. While $1.5 million was raised, $1.1 million of that went to fundraising. In 2008, treasurer Andrew Smith was illegally loaned $105,000 by the charity, which he promptly lost in a failed local Ponzi scheme that year. Smith and Koppleman, among others, were named in the suit.
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