Foundation Files to Stop FTC Investigation into Funding Use

The organization claims the federal agency has no jurisdiction over nonprofits.

The Federal Trade Commission (FTC) has been investigating the Childhood Leukemia Foundation (CLF) regarding its use of donation funds. The nonprofit has now filed a lawsuit against the FTC to halt the investigation, claiming the government agency has no jurisdiction over the organization, as it is a nonprofit.

The foundation’s tax filings with the IRS showed the receipt of $11.5 million in donations between 2019 and 2021, with the spending of $9.1 million on fundraising and another $1.3 million for employee compensation. This would mean that only 10% of donations contributed to the foundation actually go toward childhood leukemia.

The FTC issued an order for the foundation to comply with an investigation in 2022, seeking to ascertain whether or not the CLF is unlawfully misleading donors through this use of money.

As the Lord Leads, Pray with Us…

  • For FTC commissioners as they prepare a response to the court filing by the nonprofit.
  • For the foundation to comply with federal regulations that apply to their organization.
  • For the children, and their loved ones, who are battling leukemia.

Sources: Reuters, Federal Trade Commission


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