Thursday, October 3, 2024

NASCO Issues Guidance Regarding Scam PACs

Download (39)We have previously discussed in this space the emergence of "Scam PACs" that fraudsters use to avoid charitable solicitation rules and often to take advantage of the current sharp political divisions, including as recently as this past June and as long ago as at least 2019. Despite federal indictments and convictions, it appears that they still remain a common vehicle for fraud. 

Now the National Association of State Charity Officials (NASCO) has issued guidance specifically relating to this development. The guidance states "While many PACs serve an important role in political discourse, scam PACs are out to exploit legal loopholes and deceive donors by fundraising under the pretext that they are supporting an issue-based cause. Instead, a scam PAC diverts almost all of its donor’s money back into fundraising and the PAC organizer’s pockets. Scam PACs often target elderly constituents through telemarketing." The guidance then recommends taking specific steps to research a PAC before donating and how to be cautious when receiving telephone or text donation requests.

Lloyd Mayer

https://lawprofessors.typepad.com/nonprofit/2024/10/nasco-issues-guidance-regarding-scam-pacs.html

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