logo logo
Donate
    • Membership
    • Donate
  • Social Justice
    • Racial Justice
    • Climate Justice
    • Disability Justice
    • Economic Justice
    • Health Justice
    • Immigration
    • LGBTQ+
  • Civic News
  • Nonprofit Leadership
    • Board Governance
    • Equity-Centered Management
    • Finances
    • Fundraising
    • Human Resources
    • Organizational Culture
    • Philanthropy
    • Power Dynamics
    • Strategic Planning
    • Technology
  • CONTENT TYPES
  • Leading Edge Membership
  • Newsletters
  • Webinars

Nonprofit Newswire | NY AG Nixes Sham Charity

Rick Cohen
June 30, 2010

June 25, 2010; Source: New York Daily News | Which of Dante’s circles of hell should be reserved for the charlatans who steal charitable donations meant for the homeless? The fourth for avarice, the eighth for fraud, the ninth for betrayal, or all nine? The only circle that New York attorney general Andrew Cuomo could design for the rip-off artists who scammed money under the camouflage of the United Homeless Organization is the one which permanently bars them—Stephen Riley and Myra Walker—from running nonprofits in New York State in the future.

Anyone who ever traversed New York City thoroughfares outside of transportation hubs like Penn Station, Times Square, Port Authority, Union Square, or Grand Central has encountered people with the clear bluish United Homeless Organization jugs on folding tables. If you asked how the money would be used to help the homeless, you were assured that UHO was a legitimate organization with real programs, albeit no documentation to back that up.

It was about an obvious a scamola as you could find, but Riley and Walker operated the UHO since 1987 apparently with no license, no program, no nothing except an ability to set up the fundraising tables and to pay themselves. The way the scheme operated was that Riley and Walker would lease the tables, jugs, and UHO banners to people for $15 a day. The table workers would be able to keep whatever they would be able to raise after paying the $15. According to the court and the AG, Riley and Walker took about $9,000 a week from the program in addition to paying for personal expenses out of UHO accounts.

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

The New York Times notes that $173,000 disappeared from UHO accounts between January 2005 and August 2009. By the time of the court proceedings brought by the AG, the United Homeless Organization didn’t have any money to pay for counsel. Riley contends that he is a victim, that the people who were collecting and pocketing the table money were homeless, therefore the UHO really was a homeless assistance program. What a bunch of malarkey!

It’s our feeling that the numbers don’t make sense. Riley and Walker must have been making more than what was reported. The only penalty is that they’re barred from running other nonprofits in New York? Expect two follows: some new organization will begin using the United Homeless Organization fundraising technique to scam money from well-meaning donors in New York, and Riley and Walker will pop up in the news again, in New York or someplace else. When it comes to some charity scams, we’re running around in concentric circles of hell.—Rick Cohen

About the author
Rick Cohen

Rick joined NPQ in 2006, after almost eight years as the executive director of the National Committee for Responsive Philanthropy (NCRP). Before that he played various roles as a community worker and advisor to others doing community work. He also worked in government. Cohen pursued investigative and analytical articles, advocated for increased philanthropic giving and access for disenfranchised constituencies, and promoted increased philanthropic and nonprofit accountability.

More about: Nonprofit News

Our Voices Are Our Power.

Journalism, nonprofits, and multiracial democracy are under attack. At NPQ, we fight back by sharing stories and essential insights from nonprofit leaders and workers—and we pay every contributor.

Can you help us protect nonprofit voices?

Your support keeps truth alive when it matters most.
Every single dollar makes a difference.

Donate now
logo logo logo logo logo
See comments

You might also like
As Immigration Enforcement Ramps Up, Elected Leaders Face Increased Threats
Rebekah Barber
My Street Vendor Is Missing: The Impact of ICE Raids in Los Angeles
Rudy Espinoza
Why Guardianship Reform Is a Civil Rights Imperative
James A. Lomastro
Advocates Seek to Protect Children with Disabilities from Federal Cuts
María Constanza Costa
Big Tech Comes to Tucker County, West Virginia
Laura Harbert Allen
What Happens When Your NSF Grant Is Canceled?
Nicole Walker

Upcoming Webinars

Group Created with Sketch.
June 26th, 2:00 pm ET

From Performance Management to Mutual Commitment

Fostering a Culture of Joyful Accountability

Register
Group Created with Sketch.
July 24th, 2:00 pm ET

Organizing in Divided Times

The Relational Infrastructure We Need to Protect Democracy

Register

    
You might also like
Conservatives Attack Nonprofits on Capitol Hill
Isaiah Thompson
Glass-paneled exterior of the Microsoft building.
Microsoft Axes Free 365 Software for Nonprofits
Isaiah Thompson
US Capitol Building
Tax Provision Would Give Trump Administration Unilateral...
Rebekah Barber and Isaiah Thompson

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

  • About
  • Advertise
  • Careers
  • Contact
  • Copyright
  • Donate
  • Editorial Policy
  • Funders
  • Submissions

We are using cookies to give you the best experience on our website.

 

Non Profit News | Nonprofit Quarterly
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.