Contribution Tips and Fraud Enforcement:
When has Fraud occurred?
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Under Alabama Code § 13A-9-72, a professional fundraiser or solicitor who commits both of the following acts, commits charitable fraud:
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Knowingly represents that they are soliciting funds for a charitable organization without that organizations consent and
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Receives any contributions which are not delivered to the organization either a) within 30 days after receipt or b) 10 after the charitable organization requests the funds; whichever is sooner.
What are the Penalties for charitable fraud?
Criminal Penalties:
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Under Alabama Code § 13A-9-73, theft of property by charitable fraud which exceeds $1,000.00 is charitable fraud in the first degree and is a Class B felony.
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Under Alabama Code § 13A-9-74, theft of property by charitable fraud which exceeds $100.00 is charitable fraud in the second degree and is a Class C felony.
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Under Alabama Code § 13A-9-73, theft of property by charitable fraud which is less than $100.00 is charitable fraud in the third degree and is a Class A misdemeanor.
Civil Penalties:
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Attorney General may bring a civil action under § 13A-9-76 against a charitable organization, professional fund raiser, professional solicitor, or commercial co-venturer, and any other persons acting for or on their behalf.
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The action may be to enjoin the charitable organization and other persons from continuing the solicitation or collection of funds or cancel any registration statement previously filed with the Attorney General for engaging in solicitation or collection of funds through any scheme, plan, artifice, to defraud or obtain money or property under false pretense or misrepresentation.
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State penalties can be imposed in the amount of up to $5,000 per violation.
Enforcement:
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The Attorney General has supervisory authority over charities in the State of Alabama.
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The District Attorney’s Office for each county is charged with enforcement.
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If you have evidence or information regarding charitable fraud contact the District Attorney’s in your area.
Reporting Fraud:
- Contact the police in the county where the nonprofit organization is located.
- Contact the District Attorney’s Office in your county. A listing of all counties District Attorney’s contact information can be found at: www.ago.state.al.us/victim_vso.cfm?Action=All
- Contact the Attorney General for Alabama, preferably in writing at:
Office of the Attorney General
500 Dexter Avenue
Montgomery, AL 36130
Protect Yourself:
