Previous discussion on 10/4/18 provided details on a settlement between Food for the Poor and the Michigan Attorney General.
Prior post provided explanation of the FFP appeal claiming 95% efficiency, the cost of 6 cents to provide a meal, and joint cost allocation of speakers who go out to raise funds.
I have obtained and read a copy of the settlement agreement with the AG. There are a few more details that are worth describing.
The settlement agreement was effective 9/27/18. It was announced the next day.
FFP denies their appeals were misleading and denies any violation of state law. They also deny doing anything wrong. The charity does recognize
“…that modifying its solicitations would better emphasize its impact, as well as achieve greater transparency. Food For The Poor worked with the Department to modify its solicitation materials and resolve the Department’s concerns.”
FFP agreed to pay $250,000 to two charities in Michigan which feed poor people. The charity also agreed to pay the AG $50,000 as reimbursement for their litigation costs.
Issues and resolutions