In a year-long investigation conducted by CNN, The Tampa Bay Times, and the Center for Investigative Reporting, America's 50 worst charities were exposed, with the country's worst operating behind a gas station in Holiday, Florida.
Every year Kids Wish Network spends less than 3 cents on the dollar to help the kids, for whom the organization was created. The rest gets fed to third party contractors and other for-profit extensions, according to the report.
Among the findings, in the last decade alone Kids Wish Network gathered nearly $110 million in donations with an additional $4.8 million going to the organization's founder and his consulting companies.
No charity has taken more money away from the needy over a longer period of time, accounts CNN.
But Kids Wish Network, though the worst case, is just the beginning of 6,000 charities that have been identified for using for-profit companies to grow donation pools and donor networks.
The report also itemized America's 50 worst charities that include non-profits that mimic other better-known organization names to fool donors into giving them money. These 50 have also been accused of collectively paying solicitors nearly $1 billion that could have gone to actual charitable work.
"The 50 worst charities in America devote less than 4% of donations raised to direct cash aid. Some charities gave even less. Over a decade, one diabetes charity raised nearly $14 million and gave about $10,000 to patients. Six spent no cash at all on their cause," read one finding included in the report.
Another bit of information discovered is: "Some nonprofits are little more than fronts for fund-raising companies, which bankroll their startup costs, lock them into exclusive contracts at exorbitant rates and even drive the charities into debt. Florida-based Project Cure has raised more than $65 million since 1998, but every year has wound up owing its fundraiser more than what was raised. According to its latest financial filing, the nonprofit is $3 million in debt."
Since CNN published its findings, the Times and CIR have attempted to reach out to the 50 worst charities for comment.
Most have declined to answer.
Watch the report as detailed by CNN:
