When you donate to a charity, you expect your money to help a good cause. You trust that it will support people in need, fund important research, or protect the environment. Sadly, that trust is sometimes broken.
Some people in positions of power at non-profit organizations see an opportunity to enrich themselves instead of serving others. They take advantage of donor goodwill and often weak oversight to line their own pockets.
It’s a stark reminder that while most charities are doing incredible work, it’s always wise to research where your money is going. Let’s look at ten examples of non-profit leaders who shockingly stole from the organizations they were supposed to lead.
10 American Parkinson’s Disease Association
Frank L. Williams seemed like a great leader for the American Parkinson’s Disease Association. Under his guidance, the charity grew, and donations poured in. But behind the scenes, Williams was running a simple scheme to steal money.
For about seven years, he had checks sent from the main office to a branch in Minnesota. An accomplice there deposited the checks into a local account and then wrote new checks directly to Williams. He managed to pocket around $1 million.
His excuse? He felt underpaid compared to leaders of similar charities, even though he earned nearly $110,000 a year. He spent the stolen money on luxuries like cars and TVs. In 1996, he received a lenient 15-month jail sentence due to heart disease and was ordered to repay the money.
9 United Way of America
William Aramony, the long-time CEO of United Way of America, used charity funds to live a lavish lifestyle and impress his young girlfriend, who was just 17 when their relationship began (he was 59). He bought her a condo, took her on expensive trips, and even gave her a job at the charity.
Aramony led United Way for 22 years and was seen as an influential figure. However, he was also known for using his position to pressure women into relationships. He resigned in 1992 amid growing concerns.
In 1995, Aramony and two accomplices were convicted of stealing $1.2 million. His defense claimed a brain condition affected his impulse control, but his actions showed a clear pattern of abusing his power and misusing funds meant for people in need.
8 Goodwill Industries
In Santa Clara County, California, a shocking scam unfolded within ten Goodwill stores during the 1990s. Instead of pricing and selling donated items as expected, employees were instructed to sort goods and load them onto trucks for a different purpose.
Seven local Goodwill managers, mostly related to each other (including four sisters), orchestrated a scheme to steal millions in donated cash and goods. They diverted desirable items and sold them for profit, paying the involved workers small, unofficial amounts from the earnings.
The group stole an estimated $15 million. While top Goodwill leadership wasn’t implicated, questions arose about how such a large-scale theft went unnoticed for so long. An eighth suspect sadly died by suicide after her home was searched.
7 On Your Feet
Geraldine and Clayton Hill founded On Your Feet, a California non-profit aimed at helping the needy. They successfully convinced local businesses to donate clothes and other items. While some donations reached those in need, much of it did not.
For at least a decade, the Hills secretly sold many donated goods to discount stores and kept the money for themselves. They treated their tax-exempt charity like a personal bank account, avoiding taxes on their illegal income.
The couple made over $1 million through this deception. In 2020, Geraldine was sentenced to 15 months in prison, and Clayton received nine months. Ironically, they even donated some of their stolen proceeds to their own church.
6 Order of the Eastern Star
The Order of the Eastern Star is a long-standing Masonic organization. However, in Scotland, one of its leaders betrayed the members’ trust. Mary Shirkie, the acting treasurer of the Supreme Grand Council of Scotland, was the only salaried employee at the Glasgow headquarters.
Her salary wasn’t large, as the Order primarily uses its income for member annuities and charitable donations. But members noticed fewer donations and annuity payments being made. Meanwhile, Shirkie seemed to have more money than expected.
Over five years, she embezzled about $26,000 (in today’s value). While not a huge sum compared to others on this list, it significantly impacted the Order, which operates on member dues. Even the auditor, a local chapter member, didn’t suspect her. When caught in 2000, the Order lacked funds for taxes and operations.
5 Wounded Warrior Project
It’s important to note that the Wounded Warrior Project has reportedly reformed its practices. However, a 2016 investigation revealed troubling spending habits by its former leaders.
While many reputable veterans’ charities spend over 90% of donations directly on programs, the Wounded Warrior Project was spending only about 60%. A large portion of the remaining funds went towards lavish staff conferences, events, and travel that seemed more like perks than essential fundraising activities. One employee called the spending “total excess.”
The excessive spending raised serious questions about whether donor funds were truly prioritizing the veterans the organization claimed to serve. Following the investigation, leadership changes were made.
4 Leonardo DiCaprio Foundation
There’s no indication that Leonardo DiCaprio personally profited from his environmental foundation. However, in 2016, the foundation became linked to a massive $3 billion Malaysian embezzlement scandal investigated by the U.S. Justice Department.
A key figure in the scandal, Jho Low, was a friend of DiCaprio and reportedly made donations to the foundation. The main issue highlighted was the foundation’s lack of transparency. It claimed significant fundraising success ($45 million in 2016) but provided little detail on where the money came from or how it was spent.
With only six unpaid staff members listed, the foundation’s operations seemed opaque. While no direct wrongdoing by the foundation was proven in this context, the situation underscored the need for all charities, even celebrity-backed ones, to be open about their finances.
3 New Era Philanthropy
John Bennett Jr. started the Foundation for New Era Philanthropy in 1989 with an enticing promise: non-profits could deposit funds with New Era, and after a set time, they’d receive double their money back, thanks to anonymous donors.
It sounded too good to be true, and it was. There were no anonymous donors matching funds. Bennett was simply using money from new investors (charities) to pay off earlier ones – a classic Ponzi scheme.
This fraudulent operation continued for over five years, duping numerous charities and legitimate donors who believed they were contributing to a matching gift program. In 1996, Bennett was indicted on 82 counts and eventually served 12 years in prison for his massive deception.
2 Coalition to Salute America’s Heroes and Help Hospitalized Veterans
Roger Chapin built a career founding numerous charities, including two focused on veterans: the Coalition to Salute America’s Heroes and Help Hospitalized Veterans. While these organizations raised impressive sums – nearly $170 million between 2004 and 2006 – concerns arose about where the money actually went.
Congressional investigations in 2007 and 2008 found significant “financial inefficiency.” Only about 25% of the funds raised went directly to helping veterans. The vast majority was spent on fundraising costs, administrative expenses, and hefty salaries for Chapin and his associates.
Even after retiring from Help Hospitalized Veterans in 2009 amid scrutiny, Chapin paid himself a retirement package of nearly $2 million from the charity’s funds. While potentially not illegal, his actions were widely seen as deeply unethical, profiting excessively from organizations meant to aid veterans.
1 Feed the Children
Feed the Children faced major controversy under its founder and president, Larry Jones. The watchdog group CharityWatch once labeled it “The Most Outrageous Charity in America” during his tenure.
After nearly 30 years at the helm, Jones was forced out by the charity’s board in 2009. He sued for wrongful termination, but the board presented evidence of numerous issues, including misuse of donation funds, giving himself and his wife unauthorized pay raises, and generally running the organization like a personal piggy bank.
Jones treated Feed the Children as his private domain for decades. Since his departure, the charity has worked to reform its practices and refocus on its mission of helping children in need.
These stories are disheartening, showing how greed can infiltrate even organizations built on goodwill. They highlight the importance of transparency and accountability in the non-profit sector. As donors, doing a little research before giving can help ensure our contributions truly make a difference.
What do you think about these cases? Have you researched charities before donating? Leave your comment below!
