Buzz
Some argue that robbing a bank is a victimless crime, provided no one is harmed. Since the money is insured, the bank bears the loss, and banks are wealthy enough to absorb it. However, the cost of insurance is ultimately passed on to customers, making it not entirely 'free money.' Despite this, non-violent bank robbers have become iconic figures in American culture, often admired by many.
Stealing from non-profits, however, is universally condemned. Those who do so exploit their roles, misusing funds donated in trust and depriving the intended beneficiaries. Such actions are a clear betrayal of the organization's mission and the donors' goodwill.
Non-profits thrive on trust and benefit from certain privileges, but they can sometimes lack transparency and professionalism in their operations. While the majority of charities are honest, it's crucial to investigate an organization before donating to ensure your contribution supports the right cause and not fraudulent individuals.
Below is a list of ten non-profit leaders who were caught embezzling from their own organizations.
10. American Parkinson’s Disease Association
In July 1996, Frank L. Williams, aged 55, was sentenced to 15 months in prison and three years of probation. The leniency in his sentence was due to his heart condition. Additionally, Williams was ordered to reimburse the funds he embezzled from the American Parkinson’s Disease Association.
Prior to his conviction, Williams had been a highly effective leader for the charity, driving growth and boosting donations significantly. However, it was later revealed that a portion of these funds was being siphoned off for his personal gain.
Williams’s method of embezzlement was relatively straightforward. He redirected checks from the Staten Island office to the Minnesota branch, where an associate deposited them into a local bank account. The associate then issued new checks to Williams. This scheme lasted approximately seven years, during which Williams misappropriated around $1 million. He justified his actions by claiming that leaders of similar organizations earned double his salary, despite his annual income of nearly $110,000.
Williams admitted that once he began stealing, it became difficult to stop. He spent the embezzled funds on luxury items such as cars, televisions, and clothing.
9. United Way of America
William Aramony sought to impress his young girlfriend by purchasing a New York condo, funding extravagant international trips, and securing her a position within the charity he led. Their relationship began when he was 59 and she was only 17, which was just one aspect of his highly inappropriate behavior.
Aramony, known for his womanizing tendencies, exploited his role as CEO of United Way of America to coerce women into sexual relationships. After 22 years with the charity, he stepped down in 1992. Despite his misconduct, he was regarded as a capable and influential leader in the non-profit world.
In 1995, Aramony and two associates were charged with embezzling $1.2 million. His defense attorney argued that a brain condition impaired his ability to control his impulses, contributing to his actions.
8. Goodwill Industries
During the 1990s in Santa Clara County, California, employees at ten Goodwill stores sorted through donated items and loaded them onto trucks. However, instead of preparing suitable items for sale in their stores, they were working long hours, seven days a week, contributing to a lucrative scam. The workers were occasionally compensated with unofficial payments from the profits of the stolen goods.
Seven local Goodwill leaders orchestrated a scheme that siphoned off millions of dollars in donated cash and goods. These managers were all related—four of them being sisters. An eighth suspect, unrelated to the group, took her own life after her home was searched by authorities. The group is estimated to have stolen around $15 million.
While there is no evidence implicating higher-ups in the organization, many questioned how such large-scale theft went unnoticed by those at the top.
7. On Your Feet
On the surface, everything appeared legitimate, but for at least a decade, this charity was not what it seemed. Geraldine and Clayton Hill established a California-based non-profit to assist those in need. They persuaded numerous local businesses to donate clothing and other goods to On Your Feet, and while some items reached those who needed them most, the operation was far from transparent.
Unfortunately, a significant portion of the donations never reached those in need, as the Hills diverted many items to discount stores and kept the profits for themselves. Their charity, which was tax-exempt, functioned like a personal bank account, allowing them to evade taxes on their illicit earnings.
By exploiting the generosity of local businesses, the couple amassed over $1 million. In 2020, Geraldine was sentenced to 15 months in prison, while her husband received a nine-month sentence.
Their hypocrisy was starkly highlighted by the fact that they donated a portion of their ill-gotten gains to their church.
6. Order of the Eastern Star
The Order of the Eastern Star, a Masonic organization with roots dating back to 1850 in Mississippi, saw one of its leaders go astray—not in the United States, but in Scotland.
Mary Shirkie, the acting treasurer of the Supreme Grand Council of Scotland, betrayed the trust placed in her by its members. As the sole salaried employee at the Order’s Glasgow headquarters, her pay was modest, as the organization primarily allocates its funds to member annuities and charitable donations. However, during her tenure, the Scottish branch of the Eastern Star contributed little to charities and failed to distribute annuities as expected.
Shirkie’s neighbors speculated that she had quietly come into prize money, given her unexpected financial comfort. However, her newfound wealth was not her own—over five years, she had embezzled approximately $26,000 (adjusted for today’s value). While this amount may seem small, it was significant for the Order, which relies on membership dues to cover expenses and disbursements.
The auditor, a local chapter member, had no suspicions, and no one believed Shirkie capable of such deceit. When authorities confronted her in 2000, she offered to repay the stolen funds. By then, the Order was struggling to meet its tax obligations and cover basic operational costs.
5. Wounded Warrior Project
It’s worth noting that the Wounded Warrior Project has since refocused its mission on supporting veterans, but this wasn’t always the situation.
A 2016 investigation revealed that the charity’s leaders were splurging on personal hobbies and extravagant events. One staff member described their spending as “utterly excessive.”
While other veteran-focused charities allocate over 90% of their income to supporting their causes—providing mental, physical, and financial aid to veterans—the Wounded Warrior Project spent only about 60% on its mission. The remainder funded lavish trips and activities unrelated to fundraising.
4. Leonardo DiCaprio Foundation
There is no indication that DiCaprio personally profited from his environmental charity—he certainly doesn’t need the money. However, in 2016, the U.S. Justice Department alleged that his foundation was entangled in a $3 billion embezzlement scheme originating in Malaysia. Jho Low, a key figure in the scandal, was also a close friend of DiCaprio.
The primary issue was the lack of transparency in DiCaprio’s foundation. Despite reporting $45 million in donations for 2016, the sources and uses of the funds were unclear. Additionally, the charity’s connection to questionable activities in Malaysia remained unexplained. Records indicated the foundation had only six unpaid staff members.
While there may have been no wrongdoing, transparency is essential for all charitable organizations to maintain trust and accountability.
3. Feed the Children
Charitywatch.org plays a crucial role in overseeing non-profits, and it once branded Feed the Children, under Larry Jones’s leadership, as “The Most Outrageous Charity in America.”
Jones led the charity for nearly 30 years until the board forced him out in 2009. He sued for wrongful termination, but the board presented evidence of numerous violations, including fund mismanagement, unauthorized pay raises for himself and his wife, and other misconduct.
For three decades, Jones treated Feed the Children as his personal domain. Since his departure, the charity has refocused on its core mission and is once again fulfilling its intended purpose.
2. Coalition to Salute America’s Heroes and Help Hospitalized Veterans
Roger Chapin has had a lengthy career in the non-profit sector, founding more than 30 organizations focused on causes ranging from cancer research to veteran support. However, there are allegations that Chapin himself may have been the primary beneficiary of these endeavors.
The House Committee on Oversight and Government investigated his operations in 2007 and 2008 due to financial mismanagement in two of his initiatives. The Coalition to Salute America’s Heroes and Help Hospitalized Veterans were highly successful at fundraising, bringing in nearly $170 million between 2004 and 2006. Yet, only about 25% of these funds reached veterans, with the remainder covering salaries for Chapin and his associates, as well as other expenses.
Chapin stepped down from Help Hospitalized Veterans in 2009. Despite prior scrutiny over inefficiencies, he awarded himself nearly $2 million from the charity’s funds as a retirement package.
While Chapin’s actions were not illegal, they were undeniably unethical.
1. New Era Philanthropy
In 1989, John Bennett Jr. established the Foundation for New Era Philanthropy, commonly referred to as New Era.
The concept behind New Era was straightforward: non-profits would deposit funds with the organization for a set period. Upon maturity, they would receive their original investment back, plus an equal amount contributed by an anonymous donor—effectively doubling their money. It sounded like a fantastic deal.
However, Bennett was using funds from new investors to pay returns to earlier participants, as there were no anonymous donors. In essence, it was a Ponzi scheme. This fraudulent operation continued for more than five years.
In 1996, Bennett was charged with 82 counts of fraud and served 12 years in prison.
