NEWS RELEASE
St. Paul, MN -- Minnesota Attorney General Lori Swanson today (Wednesday, March 24) filed a lawsuit against a California nonprofit corporation that sold college entrance test preparation materials to trusting Minnesota parents by misleading them into believing that their child had requested the materials, that the organization was affiliated with the child’s school, and that the proceeds from their purchase would be used to make extensive scholarships to underprivileged children.
“Minnesotans are generous people who are always willing to lend a hand to help a good cause. Especially in this bad economy where so many budgets are stretched thin, people should research any organization that calls asking for money to make sure their generosity goes to reputable charities,” said Attorney General Swanson.
Attorney General Swanson added: “Many nonprofits have had to do more with less money as donations have fallen and the need for their services has risen in this recession. People should do their homework before responding to telemarketing solicitation calls so that their donations are used as intended.”
According to a October, 2009 report by GuideStar USA, 51 percent of charities that accept public donations saw a decline in donations in the first nine months of 2009 compared to the same period in 2008, and 62 percent reported an increase in demand for their organization’s services.
The lawsuit--filed against Dream Scholars Foundation, a San Diego, California nonprofit corporation--alleges that Dream Scholars sells college entrance test preparation materials and other products by misleading parents.