Fraud in Fundraising: What Animal Nonprofits Can (and Can’t) Do Under the Law
The animal welfare world runs on donations. But not every dollar is spent as promised. From inflated vet bills to double-counted “emergency” appeals, many rescues and nonprofits operate in a financial gray zone. And in some cases, that zone becomes criminal.
At LAW, we don’t just sue abusers. We investigate animal charities. We track where the money goes. And when the public is being misled, we act.
What counts as fundraising fraud?
Misrepresentation of facts to solicit donations (e.g. claiming a dog needs surgery when it doesn’t)
Failure to use restricted funds for the stated purpose (e.g. money raised for transport used on payroll)
Ghost rescues that recycle the same stories or photos for different animals
Fictitious vet invoices or altered receipts
Failure to report income or file required documents with the IRS or NYS charities bureau
"Adoption fees" that are really sales
How the law applies:
In New York, nonprofits must register with the Charities Bureau of the Attorney General. Other states have similar requirements.
Any organization soliciting donations must comply with the New York Executive Law Article 7-A, including accurate recordkeeping and reporting.
Misuse of funds may result in civil penalties, loss of nonprofit status, or criminal fraud charges.
If donors can prove they were misled, they may sue individually or as a class.
What we look for at LAW:
Conflicting donation appeals with inflated urgency
Rescues that claim to save 100+ animals per month without financial transparency
Imported animals with no transport costs reflected in financials
Rescue operators with multiple entities funneling funds through personal accounts
Use of “emergency” language for ongoing or planned expenses
How to protect your organization:
Be transparent. Publish your financials and vet records.
Use specific language in appeals and avoid exaggeration.
Keep clear, auditable records of how every dollar is spent.
Avoid promising outcomes you cannot control (e.g. "this will save this dog").
Register your nonprofit properly and file annually.
And if you’re a donor — ask questions. Real rescues are proud to show their receipts.
At LAW, we are preparing multiple cases against groups that have misled the public and misused donations. This is not about minor bookkeeping mistakes. It’s about deception. It’s about using animal suffering to enrich individuals who know exactly what they are doing.
If you suspect fraud, report it. And if you’ve been targeted by a fake rescue, reach out. LAW is not afraid to bring heat to the nonprofits hiding behind cute faces and dirty money.