A burglar broke into a mansion one night.
He shone his flashlight around, looking for valuables, and when he took a priceless painting off the wall to put into his sack, a strange, disembodied voice echoed from the dark, saying,
“God is watching you.”
He nearly jumped out of his skin, clicked his flashlight off, and froze. When he heard nothing more after a bit, he shook his head, promised himself a vacation after the next big heist, then clicked the light back on and began searching for more valuables.
Just as he picked up some jewelry off of a nightstand, clear as a bell, he heard,
“God is watching you.”
Totally rattled, he shone his light around frantically, looking for the source of the voice. Nothing.
As he starts to put silver trays from the dining room into his burglar’s sack, the stern voice blares out again,
“God is watching you.”
The burglar shines his flashlight everywhere. Finally, in the corner of the room, his flashlight beam comes to rest on a parrot.
“Did you say that?” He yelled at the parrot.
“Yes,” the parrot confessed, then squawked, “I’m just trying to warn you.”
The burglar relaxed and bellowed out loud. “Warn me, huh? Who do you think you are, anyway?”
“Moses,” replied the bird.
“Moses!” The burglar laughed. “What kind of people would name a parrot ‘Moses’?”
The bird promptly answered, “The same kind of people who would name their pit bull ‘God’!”
Every so often, we read or hear scandalous stories about “so-called nonprofits” that “pulled the wool over their supporters’ eyes.” How regrettable, because their claims for charitable support weren’t genuine. Where’s that pit bull when you need him?
From time-to-time disaster relief appeals also relieve you of well-intended, but stolen gifts. Earthquakes in Turkey, tsunamis in Japan, wars in the Middle East, wildfire conflagrations and the list runs on. Watching images from these areas wrenches our hearts out, and we sometimes empty our wallets to support counterfeit pleas. These situations provide an ideal opportunity for evildoers to set up bogus charities to entrap unsuspecting people.
So, what should donors, or even fundraisers, do?
First, let’s look at some unscrupulous individuals who defrauded the public through their nonprofit schemes. On August 24, 2018, Charity Watch, a well-known charity watchdog, published a story on their website (https://www.charitywatch.org/) called “CharityWatch Hall of Shame: The Personalities Behind Charity Scandals.” The exposé shines the spotlight of shame on leading public figures who, “… Regardless of how distinguished, well-connected and honored a charity leader is, he is only human and may be tempted to use the power and influence of his position to abuse the public’s trust.” You should read the shocking revelations in that story.
Known scoundrels in the above story include Father Bruce Ritter, founder of Covenant House; William Aramony who served for 22 years as president and CEO of the United Way of America; philanthropist and entrepreneur John Bennett, Jr. (Founder, Foundation for New Era Philanthropy, a Ponzi scheme); Lorraine Hale and her husband, Jesse DeVore, (Hale House); John Donald Cody aka “Bobby Thompson” (The United States Navy Veterans Association); and Zvi Shor (founder, National Children’s Leukemia Foundation). These shady characters are only part of a long list of ne’er-do-wells. Among the abuses that plagued their organizations were sham charities, theft, fraud, kickbacks, embezzlement, corruption, money laundering, cover-ups and various forms of sexual misconduct.
When deciding which charities to include on your list of legitimate contributions, consider these steps:
- Transparency: Most notable in the checklist of items is the word “transparency.” It refers to the nonprofit’s disclosure of privileged information to the public—donors, staff and the community at large. Providing information about key administrative considerations such as finances, governance policies and operational procedures represents transparency. A charity’s Annual Report found on its website or in its main office might provide easy access to these, or you can request one from the organization.
- Internal Revenue Service (IRS): Use the Tax-Exempt Organization Search (TEOS) tool at IRS.gov to find and verify approved, authentic charities before donating. According to the IRS,
“With the TEOS, people can:
*Verify the legitimacy of a charity
*Check its eligibility to receive tax-deductible charitable contributions
*Search for information about an organization’s tax-exempt status and filings.”
- Watchdogs: Consumer-oriented safeguards for nonprofits can help certify their legitimacy. A few of these organizations are GuideStar, Charity Navigator, Charity Watch and the Better Business Bureau’s Wise Charity Alliance (BBB). As part of their mandate, these civic overseers publish financial and operating benchmarks for organizations. Make sure they stay true to their mission and values.
- Form 990: Not-for-profit organizations are required to file annual 990 forms. You can use this method to find out if an institution is spending your money efficiently and effectively. In this document, you might find several eye-popping “red flags.” Nonprofits are required to share their 990 forms, but not all comply. That’s a “red flag.”
- Be an Informed Consumer: Follow the news and social media for information regarding the charity, such as whistleblower revelations. Check accreditation standards, if applicable and review financial ratios. Don’t be surprised if you come across relevant information that makes you think twice before writing that check. If you have any concerns, ask around.
Last but not least, do not waste your hard-earned money. So, all good intentions aside, performing due diligence before it’s too late rests on your shoulders. Few recover their money from a bottomless pit. Avoid discovering that money you lost is nearly impossible to recover.
And always remember this—follow the money! Either that or get a pit bull.
© 2025 Norman B. Gildin. All rights reserved.
Norman B. Gildin is the author of the popular book on nonprofit fundraising “Learn From My Experiences.” He will soon publish his second book, “Fundraising Insights for Nonprofits.” His website is www.normangildin.com.
