Paper transfers On paper, these charities operated as separate and distinct organizations dedicated to fighting hunger and curing diseases such as AIDS, cancer, diabetes, leukemia and heart disease. The majority of cash donated to the charities - $29 million over three years - comes almost exclusively from federal employees who give a portion of their paychecks in the world's largest annual workplace charity drive, the government's Combined Federal Campaign. The investigation also revealed: * Charities give cash to groups and causes unrelated to their names or missions, such as a breast cancer group giving to a childhood diabetes group. * Loopholes in the federal tax code allow charities run by related parties to do business together without disclosing relationships to donors. * Lax oversight by federal agencies overseeing the federal campaign means charities are rarely monitored about how donations are spent; once a charity meets basic entrance requirements, it likely will never be screened again. * Charities have little reason to fear an audit; the Internal Revenue Service reviews less than 1 percent of the nation's 1 .5 million nonprofits.
Connect the dots Robert Anglen Investigative Reporters and Editors, Inc. The IRE Journal; Winter 2010; 33, 1; Docstoc pg. 18 Reproduced wi
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