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Fundraising

Illinois Sues Charity Over ‘Misleading’ Ads

March 23, 2000 | Read Time: 1 minute

The attorney general of Illinois has sued City Mission Network International, of Santa Ana, Calif., alleging that it illegally misled the public about how much it was spending to feed the homeless.

The state sued the group, which operates the Chicago City Mission, after the organization ran newspaper ads soliciting donations that promised that for every $1.57 contributed, one homeless person in Chicago would be fed.

Attorney General Jim Ryan’s office alleges that while the network collected more than $200,000, it spent only $461.24 on meals for the homeless in Chicago. The state says its investigation found that the charity spent $347,000 on fund raising, advertisements, and salaries in 1999.

The lawsuit accuses the charity of breaking the state’s charitable trust and solicitation law by not registering as a charity, as well as misleading the public about how its donations would be spent. The state is asking for $410,000 in damages, to be used to feed homeless people.

The organization refused to discuss the charges but said in a written statement responding to the lawsuit, “We disagree with the allegations made by the Illinois Attorney General’s office and will be responding appropriately.”