Nonprofitxpress roundup – U.S., states target fraud

Here are the top nonprofit headlines:

* The Federal Trade Commission and regulators in 16 states filed lawsuits against fundraising groups, saying they fraudulently solicited donations by misrepresenting themselves as nonprofits, The New York Times reported May 21.

* Stung by a spate of costly disasters, a disaster fund at the American Red Cross has plunged to $5 million from $68 million a year ago, the Washington Post reported May 19.

* A new report says nonprofits get less than 40 cents of every dollar that commercial fundraisers in California raise for charity, the Mercury News in San Jose reported May 20.

* The Red Cross in Australia apologized to victims of the Bali bombing and to donors for misleading them over where the money would be spent, * The Age reported May 23. The newspaper reported earlier than only $4 million of $14.3 million collected had reached victims.

* Two arts groups say in a lawsuit that National City Bank in Indianapolis mismanaged two trust funds created through the estate of Ruth Lilly, heiress of the Lilly pharmaceutical fortune, The Indianapolis Star reported May 20.

* The Bill and Melinda Gates Foundation and another charity have pledged $19 million to boost Jesuit high schools working with teens in four cities, and expand the model to 12 more cities, The New York Times reported May 21.

* ChevronTexaco, which has sponsored live radio broadcasts of the Metropolitan Opera since Christmas Day 1931, will end its sponsorship after the 2003-04 season, The New York Times reported May 21.

* A report by the Charities Aid Foundation says households in Scotland are more likely to donate to charity than are those in England and Wales, BBC News reported May 15.

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