NCJ Number
49568
Date Published
1974
Length
3 pages
Annotation
TO ENCOURAGE STATE ATTORNEYS GENERAL TO USE THEIR COMMON LAW RIGHT OF PROTECTING THE PUBLIC TO REGULATE FRADULENT CHARITIES, THE SMALL SIZE AND EFFECTIVE OPERATION OF THE MICHIGAN CHARITY INVESTIGATION UNIT IS DESCRIBED.
Abstract
AFTER POINTING OUT THAT THE AMOUNT CONTRIBUTED TO CHARITY TOTALS TO $22 BILLION EACH YEAR, STATE REGULATION OF SUCH FUND RAISING IS URGED. AS THE CHIEF LAW ENFORCEMENT OFFICER OF THE STATE, THE ATTORNEY GENERAL HAS A COMMON LAW RIGHT TO PROTECT THE PUBLIC AGAINST FRAUD. THIS RIGHT GIVES THE ATTORNEY GENERAL'S OFFICE THE AUTHORITY TO PROSECUTE FRADULENT CHARITIES EVEN IN THE ABSENCE OF A SPECIFIC CHARITABLE FOUNDATIONS STATUTE. THE MICHIGAN UNIT HAS OPERATED FOR 12 YEARS WITH 2 ATTORNEYS ASSIGNED TO CHARITABLE TRUSTS, 1 ACCOUNTANT-INVESTIGATOR, AND 2 SECRETARIES. THE STAFF HAS REGISTERED MORE THAN 5,000 CHARITABLE ORGANIZATIONS AND FOUNDATIONS WITH ASSETS OF MORE THAN $4.5 BILLION DOLLARS. ANNUAL REPORTS AND LICENSE APPLICATIONS ARE HANDLED ADMINISTRATIVELY, GIVING MORE TIME FOR PROBATE HEARINGS AND PROBES INTO FRAUDS. THE KELLOGG FOUNDATION CASE, THE FREUHAUF FOUNDATION CASE, AND A FRAUDULENT FUNDRAISING CASE ARE PRESENTED AS EXAMPLES OF THE UNIT'S WORK. OTHER STATE ATTORNEYS GENERAL ARE URGED TO BEGIN SIMILAR UNITS. (GLR)