FTC Settlement Leads to Closure of Three California Charities

Three Southern California nonprofit groups targeted by the Federal Trade Commission in its nationwide crackdown on charity abuses will dissolve after reaching a settlement with the U.S. agency, the Los Angeles Times reports.

The government said the American Veterans Relief Foundation, the Coalition of Police and Sheriffs, and the Disabled Firefighters Fund, which share a Santa Ana address, spent only 5 percent of the $19-million they raised from 2005 to 2008 on charitable purposes. Instead, most of the money went to staff members and telemarketing contractors, according to regulators.

The commission fined the charities $19-million but waived the penalty due to their inability to pay. A lawyer for the organizations said they decided to settle because they could not afford to mount a defense.

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