Is diverting donations to a private source fraud?
Question Details: I own a small vending business and I donate all my soda cans and the cans/bottles people bring to me to a local dog shelter because I love dogs. I take a deduction for this, as its a charity. I found out today, from the owner of said shelter, that they use some but give some to a friend of hers that uses them to buy her daughter gymnastics equipment. I'm upset by this and will sever my business association with them. My is this fraud? Like as if, hypothetically, I told people I was donating them to a shelter, but kept them for myself?
Yes, it is fraud: they misrepresented what they would do with the donatations in order to induce you to make them. A mispresentation like that is fraud, and as was seen recently, when NY slammed the Trump Foundation for misrepresenting what it would do with donatations, this can result even in criminal charges.
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