Law Commons^™

Bringing Candor To Charitable Solicitations, David Adam Friedman

Maryland Law Review

The American public donates a staggering amount of money to nonprofit charities. These charities routinely solicit and receive money from donors for specific, earmarked purposes. Often, however, charities ignore their obligations to use money for these designated uses. In many circumstances, even a seemingly benign redirection of earmarked gifts for other charitable purposes could constitute fraud and misrepresentation.

Breaking the implicit or explicit promise to use money in a designated manner harms donors, charities, and the public. Prospective donors assess the value of charitable donations in a manner similar to the way they value consumer goods and services and can …