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Nov 23, 2006 10:12 am US/Pacific
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Give Your Money - Carefully
LOS ANGELES (CBS) ―
They promise to help police officers in their time of need. And disabled firefighters who need help. But exactly who are they helping?
The charities are the coalition of police and sheriffs, also known as C.O.P.S and the disabled firefighters fund. They claim donations go to "support America's heroes" -- firefighters -- and provide benefits up to $25,000 for injured police officers.
According to tax returns obtained by CBS2 News, people are opening their wallets. C.O.P.S. took in over $2 million last year!
The disabled firefighters fund collected over 1.8 million! Combined -- that's nearly $4 million! How much exactly went to charity?
First, we secretly videotaped a meeting with the two people running the charities.
Cathy and Jeff Duncan, the president, who was eager to take money from our producer posing a potential donor.
"When you call and your group wants to make a donation just call and Cathy will handle everything," Duncan said.
Cathy said they raised millions but admitted they hire companies to do it and that takes a big chunk of change.
"When you hire companies then only a small portion of it goes -- usually 20%," Cathy said.
But Cathy said they make worthy donations nationwide.
"In fact, I just got back from New Orleans," Cathy said.
She said they gave to the Andres Gonzalez fund. He's a New Orleans police officer who was shot and paralyzed earlier this year.
"How much did you give them?" our producer asked.
"We gave them $2500.00," Cathy said.
We confirmed they gave the money to a fund for Officer Gonzalez -- but how much more did they give to charity?
"Is this a scam? In my opinion it is a scam, yes," says Bill Mitchell, president of the Better Business Bureau.
He made that comment after we showed him the tax returns.
That's because out the nearly $4 million they raised last year with the two charities, only about $159,000 actually went to charity! That's not 20 percent -- but 4 percent. Four cents on every dollar!
"If you're going to give so little money to the charity than obviously something is wrong there, " Mitchell said.
They claim a majority of the money went to paying fundraisers to make phone calls and mailings. Not to charity.
When I questioned Duncan he had no answers. So who is this man?
In his divorce papers from two years ago Duncan listed his occupation as a service technician for Roto Rooter. And he admitted that neither he nor anyone else in the charity has any police or fire background.
"With all due respect, sir, you're a plumber. What right do you have to raise this money?" we asked him.
"I'm not a plumber," Duncan said.
"Yes, you are -- excuse me you're a technician."
"I'm not."
"What are you?"
"I'm...I do air conditioning sometimes."
Duncan said he wasn't prepared to talk about where the money went -- only to show me the door.
"Dave, I'll call you and we'll set up a meeting. And we'll talk. Have a nice day."
To check out a charity before you give, look them up on the California Attorney General's
Charitable Trusts or the Better Business Bureau's
Wise Giving Alliance.
(© MMVI, CBS Broadcasting Inc. All Rights Reserved.)