million in donations over three years but despite all of that money, they've ended up in the hole more than $4.5 million. all of these charities have one thing in common. they all have connections to a fundraising company called quadriga art. the company gets paid to build mailing lists. that's where the money trail took drew. getting answers along the way was another. >> hi, how are you. >> we're for the going to be doing anything on camera. >> bottom line, you're not going to give me an interview? >> where is the money going? >> he's not in? >> here's the question. over three years and none of the money has gone to any veterans. ma'am? >> you think if the money was going where they said it was going and everything was on the up and up, they'd want to be completely transparent, right?

drew has been investigating this for years in some cases, and they are refusing to answer. literally getting doors slammed in his face. tonight, you'll see what he and his producer have uncovered during their investigation. and later on we'll also tell you what you need to look for in order to make sure that a charity that you want to donate money to, to make sure that they are doing the right thing with your donations. we begin with the veterans charity that has a lot of explaining to do. a lot of americans feel that after learning that the money they donated in the sake of helping veterans never made it to those in need. here is drew. >> mary supports veterans. she found this. >> your husband's name on them? >> uh-huh. uh-huh. >> in the fundraising industry, they are called guilt packages. and when this one arrived, a big calculator and a calendar book with her husband's name on them, mary ellis felt the guilty tug to make that donation.

>> and, see, it's disabled veterans americans. how many people are going to look at it and think that they are the same organization. >> and they are not. >> no. >> they are not from the well known and respected disabled veterans but from a newer, much smaller charity, the disabled veterans national foundation. something didn't smell right. this retired english teacher did research and found that the dvnf gets an f from a charity watchdog group. according to its tax filings, raising nearly $56 million in veterans for the past three years. but according to the records that cnn found, none of that money has gone to direct services for veterans. >> making lots of money off of it. i mean, when you're talking about millions of dollars that people are doing by grabbing money from people who don't have it.

>> who believe out of the goodness of their own heart that they are giving money to -- >> the purpose is to try to explain to me why these numbers don't add up. >> cnn has been trying to reach the disabled veterans national foundation off and on for nearly two years. the public relations did return our phone call in 2010 but the manager refused to talk. despite e-mails and more phone calls, our repeated requests for interviews were all denied. >> up to $2 billion is raised in the name of veterans in this country and it's so sad that a great deal, hundreds and millions of dollars are charitable dollars intended to help veterans, is being squandered and wasted by opportunists and individuals and companies that see it as a profit making opportunity. >> daniel runs a charity

watchdog group out of this office in chicago. he grades charities and how much good and bad they do with your donations. veterans and military charities are some of the worst, he says. and that includes the disabled veterans national foundation, which he gives an f because hardly any of the donations make it to the people that the group is fundraising for. so back to that 56 million the group has raised, if it hasn't gone to direct contributions to veterans, where exactly did it go? >> as far as we can tell, up to the tenth floor of this manhattan building to a company called quadriga arts, a company that specializes in fund raising. as far as we can tell, quadriga knows a lot about fundraising, for itself. according to its website, raises money for more than 500

charities and nonprofits worldwide. in an e-mail to cnn, a company spokesman says it does not discuss specific client relationships but that spokesman did say quadriga at times chooses to invest money in partnerships with nonprofit organizations. they said they've lost $7 million investing in nonprofit organizations. that may be true but in the case of the disabled veterans national foundation, according to tax documents, not only did nearly all of the 56 million in cash donations go to fundraising costs, but the dvnf still owes its fund-raiser another $5 million. it sounds like backward math. dvnf is reporting on its tax returns that it's costing more than a dollar to raise a dollar, despite the fact that its contract qaudriga is a low-cost

provider in the nonprofit marketplace. >> they send them out to millions of people. they don't care -- they don't care about the percentage of returns. all they care is about how much money they get from it. >> you're the one from cnn that's -- >> meet precilla wilkewitz, president of the veterans national foundation. >> i really didn't think you'd do something like this and we've agreed to talk to you and answer your questions. >> so here's the question. none of the money has gone to any veterans. ma'am? >> while wilkewitz is the former veteran liaison, it's another veterans group she's president of that we wanted to discuss. >> the bottom line is, you are not going to give me an

interview? cnn has been trying for two years to get an interview with the disabled veterans national foundation. we've gotten angry phone calls, angry e-mails, promises of written responses, and now a slammed door. >> ma'am? >> but no answer. and when you see just how this charity operates, you'll understand why. >> we're paying down our start-up costs. >> wilkewitz on the organization's website likes to boast about the gifts that they are group gives away and dvnf does give away stuff, stuff that actual veterans groups say they really don't need. it's called gifts in kind on tax forms. instead of giving away the $56 million in cash raised over the past three years, dvnf gives away stuff it got for free. in 2010 the group filed this tax form claiming it provided more than $838,000 in gifts in kind

to u.s. vets, a charity in arizona. u.s. vets showed us what actually was sent. 20 pairs of men's football pants, more than 100 chefs coats, 125 chef's aprons. a needle point design pillow case. two pages worth of stuff the director told us, we don't need. and take a look at what showed up at the st. benedicts veterans center in birmingham, alabama. the modest shipment included some useful items. 2300 disaster blankets good for a couple days' use and some cleaning supplies. but it also included this. >> they sent us 2600 bags of cough drops and 2200 little bottles of sanitizer and 11,520 bags of coconut m&ms and didn't have a lot of use for 11,500

coconut m&ms. >> here's what they posted on their website about the work they were doing in alabama. >> we send by the truckload items that these shelters say they need desperately. >> for our veterans that have given so much to our country and now need our help. >> great sound bite. >> did they ever ask you what you wanted? >> no. they always call and say, we've got a truckload coming. >> everything on top came in on the last truck, the bandages, the lotion, some hand sanitizer. >> it's unpacked. >> it's unpacked. >> because you don't -- >> we really have no use for it. these shelves should be filled with this. not that. >> food. do you ask yourself, well, where's the money? >> i ask myself that after i ask myself what the heck are these people doing stealing from our veterans? because that's what they are doing. i don't care how you look at it. these people have sacrificed for

our country and there's some people out there that are raising money to abuse it and that just makes me mad. >> executive director j.d. simpson became even more angry when these showed up, more than 700 pairs of surplus navy dress shoes. >> not a lot of use for these. >> they are part of the yard sale that this group uses to raise real funds for the things they really need. not shoes like these. >> here is the question. >> priscilla wilkowitlz will not tell us why she sent shiny new shoes. the dvnf really wouldn't tell us anything. what the group and the president continue tell you, the american public, is to keep sending in those donations. >> drew, this is really just unbelievable. how does this charity get away

with this? how do they take the money and not give it to the people that they say they are collecting it for? >> part of our mission is that if people actually donated and saw where their money was going or not going, all going to a private company, in fact, this fundraising service business operates, i don't think they would get away with it. legally, though, there doesn't seem to be much policing of these groups. but for the nonprofit watchdog groups that rate this charity as an f. >> and all of the money seems to be going directly to the company which is raising the funds. is that their business model, is simply raise money for themselves? >> you know, that seems to be the bottom line. we've been told in e-mails from this company is that the goal is maybe not to collect money to go to veterans but to build a sustainable database of names to be used for future. quadriga has told us that they have been successful in taking this start-up charity and now have a huge mailing list to work with. but, again, no real money for

the actual disabled vets. just a big mailing list. >> it's unbelievable. we'll continue on this. let us know what you think. follow me on facebook, twier @andersoncooper. up next, drew tries to get answers from the digs abled veterans national foundation. what happened to that $56 million that they raised? he tracked down the vice president of that group. we'll hear what she told him next. whoa! don't want you spilling that hot latte on my driver's seat. this is my car. who are you? i'm the second owner. the what? i will own this car after you. look, i'm not telling you how to drive our car. our car? nor where to park her. maybe under a tree with less sap. if you're gonna have a latte in the car, keep a lid on it. it's a cappuccino. still needs a lid. [ male announcer ] the exceptional certified pre-owned program with the highest quality cars. good news for the second owner. take care of my car. ♪

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more now about raising money for the disabled veterans. it sounds like a great cause, a great organization. drew griffin has uncovered it's going to make you very, very angry. the group he's investigating is called dvnf. they've got an official looking seal. that's it right there. they've raised an awful lot of money. as drew reported before the break, according to their own tax filings, dvnf has raised more than $56 million in the past three years. $56 million. that kind of money you would think there would be a lot of disabled veterans who they would help directly and you'd think that they want to show off exactly where that money has gone, right? that is not the case. drew griffin joins us again. also with senior analyst jeffrey toobin. drew, you tracked down the vice president of this group. did you get an idea of where all of this money is going? >> no. the answers are very vague.

we went to sacramento because precilla wilkewitz was going to be a presenter at the conference. we found the vice president. she did answer our questions but really without answering anything specific. >> i'm here asking actual questions for your donors and our viewers about the $56 million that they thought they were giving to actually help the disabled veterans. >> well, the cost of fundraising is high and as you know it has been many veteran service organizations who use this kind of direct paying approach. >> what is the point of a fund-raiser when all of the funds go to your private fundraising company? >> well not all of the funds do. >> well according to the documents we've been filed by your organization, they all do and more. >> i think you need to talk to our washington, d.c. office. >> quite frankly, i've been trying for two years to get answers.

>> i'm a volunteer. >> are you concerned about how this fundraising drive has gone? >> we have done nothing illegal. >> i know you have done nothing illegal. would you like to have the minute going to the veterans? >> absolutely. there is money going to the veterans. we approve grants to individual veterans and veterans organizations on a monthly basis. >> i see no evidence of that other than gifts in kind programs. >> if she's serving on the board, she should know everything that is going on with this organization and, i mean, they are not being transparent. they say they are not doing anything illegal here but that's the point here. have you been able to find any evidence of that? >> no. we have been looking, anderson,

at this group's paperwork that they file with the irs, the lists of what they have to show the irs, any actual dollars going to veterans groups. we've also been begging them to show us other books, show us any proof that it's happening. we simply cannot find it. it's just plain and simple. they have not been able to come up with one documented piece of evidence that shows us, yes, here's money that was donated and here it goes to the veterans that needs it most. >> what is so sleazy about this, after that interview you would assume if they had money that they were giving to veterans groups, after you confronted that woman on the board, that you would have gotten a call the next day and they would have said, look, here's all of the documentation, here's where all of the money is going. they haven't done that. we've been on them for months. you've been on this for years, and they have yet to really give a sit down interview. if they are doing nothing wrong and they are being trans parent and they are asking people for money, they should sit down and do an interview and explain. they are unprepared to do that.

>> what you'll hear from the watchdog groups, good fund-raisers do just that, anderson. they have nothing to hide. >> she said, as you know, fund raising is expensive. it's expensive when you sign up with quadriga because the 56 million that they've raised has gone into quadriga art and all they've gotten for it is a bigger mailing list. >> a bigger mailing list and a bigger debt to quadriga art. they are in debt to their fund-raiser. expensive is one thing but to go in debt to a fund-raiser, they are actually taking more than a dollar to raise a dollar. >> as a board member did you have any idea that the costs would be this high, $56 million would be paid just to get a list of people? >> we did not how fast this would take off and how well it would do. >> how can you say how well it would do when the money is going

to quadriga? >> we did not know how fast it would go. >> you're basically taking money that people want to go into veterans' pockets and giving it to a private company. >> it's worth it for every veteran that we can help. >> no matter what the cost? >> hi, excuse me. >> i put on women's veterans conferences in my home state and we spend several thousands of dollars and my personal philosophy has always been, if we can help one veteran, every dollar we spent is worth it. >> even if it's $56 million? >> well, i'm not going to answer that question. >> you know, i'm sorry. if you can only help one veteran and you've raised $56 million, shame on you. i mean, that is the biggest cliche of -- if i can help just one person. it sounds good if it's like a result of a bake sale. but, jeff, if you raised $56 million and you only helped one

person s. this legal? >> well, this is an amazing area of the law that frankly i didn't know much about. unfortunately, charity scams are not new and states have tried to regulate them. what the supreme court has said is that charitable requests are protected by the first amendment. that it is very hard to make scam charities illegal as long as they fill out their paperwork correctly. as long as they report honestly to the irs, you know what, we raised $56 million and it cost us $56 million. as long as that's true, as it appears to be true here, there doesn't appear to be any criminal offense involved. >> it's infuriating because maybe it's legal but it seems incredibly deceptive and also i don't know if that woman is just naive or stupid or deceitful. i'm not sure which of those things, or just embarrassed to admit that she's in over her

head. but for her to be backing up raising $56 million, that has all gone to this company and they are now in the hole to this company. >> i think all of those adjectives might apply to her. but let's concentrate on where the money goes and who is making money here. quadriga doesn't even pretend to be a nonprofit or a charity. quadriga is making an enormous amount of money by churning these charity lists. this woman strikes me, she's probably well intentioned but she's obviously in way over her head here. the problem is quadriga, not she's charities. >> how do people sleep at night? >> it is grotesque but they are going to be sleeping in their own beds, not in prison. >> on very high-thread count sheets, no doubt. >> i think so. >> we're going to talk about this more later on in the program. a look at another charity that drew has investigated, millions of dollars invested into baghdad

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welcome back. we're spending the hour tonight

looking at charities that are taking your money and as far as we can tell not delivering on their promises. in some cases, not even close. the last thing we want to do is give the impression that all charities are bad or you shouldn't give it all. that would be terrible. so in a moment we'll talk with the leaders of two groups that actually track nonprofits. they are going to share with you what you should do to make sure your donations go to good use, how you can checkup on a charity. after all, when you want to do good, help people, you want to make sure that you are actually helping someone in need. before we do that, though, we want to talk about a charity doing heroic work doing veterans. here again is drew griffin. >> he's gotten candy, cough drops, and hundreds of pairs of shoes he didn't need or ask for. now j.d. simpson has a message for those who want to help him support the small veterans shelter that he founded three years ago in alabama. >> i'm for everyone saying, let's help the vets. it's like the flavor of the day. don't say you're going to do it. do it. >> he founded the st. benedict's veterans center with almost no

money. they struggle every day to keep it open. the mission, simple, help vets get home, homeless vets get food, shelter. for three years the only real struggle to keep the mission going is money. >> my budget was at $200,000 this year and that's just enough to pay for the insurance and buy food. we're all just volunteers. >> yesterday a veteran in a wheelchair showed up. >> we had a veteran that showed up during a rain storm. we picked him up and carried him in here and they helped us with that ramp. and that gets quite a bit of use. >> since that day, the charity, the disabled american veterans, has sent simpson $400 a month for gas, not coconut m&ms. >> we don't need no silver bullet.

we need people pulling together saying, let's do something about this. let's get off the sound bites and get in the streets. >> st. benedict's is tiny. both simpson and his friend rich says it does the job, taking homeless vets off off the treat. >> do it all again? >> in a heartbeat. we really would. >> there's enough success stories, enough -- we're not going to go tahiti in our retirement but it feels good knowing when a daughter calls you and says you've given her daddy back. drew griffin, cnn, birmingham, alabama. >> it's nice to see someone doing good work and there are many others out there. more information coming up on how you can identify which charity is actually using the money that they raised wisely. we'll have more of what drew's investigation uncovered as well. but, first, a 360 news and business bulletin. >> hey, anderson, police have raided the home and office of ex french president nicolas

sarkozy. the pilot on jetblue that had a meltdown was found not guilty by reason of insanity. he was restrained by the passengers and the flight was diverted scorching heat for much of the u.s. still no power from indiana to delaware. and actor andy griffith has died, known for "the andy griffith show." decades later he also starred in "matlock." 86 years old. anderson? up next, drew griffin on the money trail, donations helping those in need but that is not the case.

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hey, welcome back. we're continuing our investigation on charities that collect millions of dollars from donations from well meaning people around the country but end up spending very little or any of that money helping anyone, except for themselves. the $56 million raised by the disabled veterans national foundation for over three years, none of that money has gone directly to help veterans. the million dollar question is, where is all of the money going? >> as far as we can tell, up to the tenth floor of this manhattan office building to a company called quadriga arts, a company that specializes in fundraising. and as far as we can tell, quadriga arts knows a lot about fundraising for itself. >> the company is called

quadriga arts. they provide mailing lists to people like dvnf. drew has been having trouble getting answers as to where the money is going. >> it's drew griffin. griffin. >> he is not here. what is this regarding? >> i'm trying to reach mr. shoeloff. >> he's not in. >> drew's reporting on dvnf caught the attention of the senate finance committee and they are investigating possible abuse of the tax exempt nonprofit status. the committee is requesting information. i spoke with senator max baucus, the chairman of the committee. >> what disturbs you the most this disabled national veterans foundation? >> it sounds like it's a front. it's not legit. they've taken $56 million from ordinary good americans who want to help americans but then don't give any money to veterans and in this case don't give any

money to disabled veterans. it's an outrage, frankly. >> have you heard of the dvnf before? >> i have not, frankly. you highlighted it in one of your reports. >> senator max baucus. dvnf is not the only charity that drew has been highlighting. spca international has a similar losing connection to quadriga art. it's called baghdad pups. they've raised millions of dollars to reunite military members with abandoned dogs. they don't really do that at all. once again, here's drew griffin. >> in montreal, the needs of the local spca were great. the money to help them is running out. so in 2005, what seemed like a great opportunity came knocking. a private fundraising company called quadriga art, spca would

become the canadian spca and quadriga arts would send mailers. across all of canada. there was a big problem. practically every dollar that came in, according to montreal's new spca director was going directly to quadriga art. the fundraising bill so large that after three years, the montreal spca, despite receiving $13 million in donations, was in the hole $4.5 million. >> how do you get in debt to a fund-raiser? >> by incurring expenses and not having a plan for getting out of it. it was not a smart decision on the spca's part and we let quadriga create strategy for us. >> the strategy was simple. quadriga art would send out

pleas for money on behalf of this shelter, include tote bags from the chinese factory but the costs far exceeded the donations and the spca was locked into this contract for seven years. the fundraising operation was so upside down for the montreal spca that they actually still owe quadriga art nearly $2 million and quadriga has even taken out a lien on this animal shelter. >> it's a lot of money. >> it's a lot of money but it's a lot less than the $4 million we owed them seven years ago. >> quadriga art and its president, mark shoeloff, have repeatedly denied an interview to explain the unique process of raising money. the cost at the beginning of raising funds by quadriga to create databases that would eventually pay off. the spokesman told us, quote,

this has been a proven model for 50 years despite being criticized by some charity watch groups. but at the montreal spca where the contract has been running for nearly seven years now, the results have been a disaster. >> will you sign with them again? >> probably not. >> that is hardly the end of this story. >> my name is drew griffin and i'm with cnn. >> yes. >> meet pierre fired by the spca board only to be part of spca international from his home in montreal and a rarely staffed office in new york, bernardi and quadriga art with a signature program called bag bad pups. the stated goal, reunited vets and their war pets. the televised appeal with an

unwitting former military dog handler on cnn's sister network, hln in 2011, was heart warming. >> our salute to the troops today is live in the studio with jerry barns who has nugget with him and sitting right beside nugget is terri with the spca and ivy is down at my feet. >> terri with spca international was telling our viewers ivy and nugget were two bomb sniffing dogs that had worked with a u.s. contractor in iraq and had been essentially abandoned by the company. she rescued them and was trying to find them homes. an hln anchor robin meade, understandably, couldn't believe it. >> how is it that they fall through the cracks and get stranded there? that's unthinkable to me. >> it is unthinkable. that's why spca international is making sure that these dogs don't get forgotten. >> it turns out, ivy and nugget weren't abandoned at all. it also turns out that the person telling us so has been

accused in similar situations before. begging for money to save animals that weren't being saved. the military contractor in iraq actually says ivy and nugget had been retired and the company had found them good families who were going to adopt them in kurdistan. that's when terri crisp came along and asked if the dogs could, instead, be donated so spca international. the contractor agreed. but terri crisp didn't tell the viewers there. what she did tell us is that if we just gave her money, spca international would be doing something few americans would resist, saving the pets of our iraq and afghan vets and that's where peggy comes in. >> when this showed up, what did you think? >> well, to be honest, when this showed up, i opened this up and this is what i saw. i thought this was fantastic. i was on board because i thought

saving animals and supporting the troops, you know, what two things could be better. >> what peggy got in the mail was a plea from the spca international and operation baghdad pups, a direct mail package from the fundraising powerhouse, quadriga art, the guilt package, as they are called in the business, included this t-shirt a tote bag, and letters to banks. peggy decided to do a little research. >> 6 cents out of a dollar, approximately, would have gone to actually saving soldier's pets. >> that's what you figured out? >> yes. based on what they spent in 2010 on the operation baghdad pups. >> in fact, according to these irs tax filings, spca international has taken in more than $26 million in donations over the past three years. $23 million of that money has gone right into the coffers of the direct mail company,

quadriga art and spca international is still in dead to quadriga art another $8.4 million. what is worse, they admit they haven't rescued any military dogs, just 26 contractors' dogs, including ivy and nugget. the bulk of the dogs that they claim to have saved, 477, have been strays befriended by the troops. $26 million to rescue less than 500 pets? how is that possible? that's what we wanted to ask the group's founder, pierre bernardi who lives in montreal. >> i'm wondering if you can tell us about the value of the donor's money. where is the money going? >> again, i'm not -- i'm not trying to hide or avoid any questions. but we have a spokesman. she has all the answers ready

for you. she has agreed to give you an interview. >> can you just tell us how? >> oh, absolutely. all you have to do is go on spcai.org. >> we did that and asked bob, the president of the charity watchdog group about the documents we found. >> what worries me about this one is that the numbers don't compute. i can't understand how to connect the dots between how much money is spent on fundraising to how much money is spent on programming and what the sources of those revenues are and i also can't really measure the impact of this organization. what difference are they really making? >> a spokesman for spca international told cnn by e-mail that, yes, although our investment is not being returned in the time frame we had projected, the investments will pay for themselves within just a few more years. peggy admits it is successful for quadriga art and perhaps even spca international but the

pets and their pets and anyone who gave money, she says, were doomed. >> what is frustrating is that it's millions and millions of dollars that just go to a business, a for-profit business. it's not going to a charity at all. >> drew griffin joins us. you weren't able to track down this woman, terri crisp. where is she? >> anderson, we're told she's in thailand and supposedly that makes her unavailable. but there's something else we learned after digging into terri crisp and her background. she's done this before. after hurricane katrina, she staged media campaigns asking for donations to save pets stranded by that storm and she actually collected $8 million for this charity called noah's wish. guess what, the state of california where it was registered, began investigating to see if any of the $8 million actually saved any katrina pets. the investigation ended with a settlement.

the agreement was noah's wish return half the one, $4 million, and made a promise that terri crisp would not be a director, officer of any charity and they are now seeing if she violated that agreement. >> i remember this woman after katrina. we did a profile of her on our program. she told us she was saving thousands of dogs. is there any evidence that she saved any? >> according to the state of california attorney general's office, that agreement only finds that sum money went to program services and specifically, anderson, overhead. there's nothing that says even a single pet was saved from hurricane katrina. and now this woman's going around again telling us we need to give her money to save stray animals in iraq and afghanistan. >> again, if these people were on the up and up, they would want to clear their names and come from or interview. they are claiming she's in thailand and unavailable.

i told you this before, i've lived in thailand. they have plenty of phones, good connections, quite good ones. it's absurd, drew. appreciate you being on it. amazing reporting. up next, chances are you're wondering how can you be sure a charity is doing the right thing with your donations? we're going to get tips from two leader who is track charities. the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. homicide of young people in america has an impact on all of us. how can we save these young people's lives? as a police chief, i have an opportunity

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all this hour we've been looking at charities from veterans to animal charities, promises are not being kept. the bad deeds of few should not stop you from donating money to those that do a good job. want to get tips on how to make sure you're working with a good charity. art is with wise giving alliance and bob has the same title at guide star usa, an organization that provides information on nearly two million nonprofits. are their kick and easy ways to checkup on a charity? >> sure. the first way is to go to a good information source. go to give.org that evaluates 10,000 charities in relation to about 20 best practices that we believe charities should adhere to, things like how they are governed, how they manage their finances, how many board members are actually attending meetings, how truthful are they in their public information materials. >> and, bob, you say that you

should be able to pick up a phone and kale any charity out there that is soliciting money. what basic questions should someone be asking before deciding to donate? >> three simple questions. what does your organization do? tell us in very simple and easy to understand language, what do you do? how do you do it is a second question. in other words, what are your programs, what are your activities? and then, three, how are you doing? give us some measurable way to impact your organization? >> art, you heard about charities that use these fundraising companies in that seems like all of the charities that we've been profiling that seems to have the common link. they are in come cases stuck in a contract. maybe they didn't realize what the terms of it were but they are still in the hole. >> you know, fund raising companies can be a good asset for some charities. but it's really important that management and the board take

control of the situation, as bob said. they should really make sure they know what they are getting into. there are fees, of course, associated with using those firms, and that's fine. but the vast majority of the money should go to the charity, not to those firms. some charities that don't have household names will get a pitch from a fundraising company which will say to them, you don't have to do anything. we're going to bring you money. well, they will bring you a little bit of money but you're really going to upset your donors because in the end most of that money is going to stay with the fundraising company under an arrangement like that. >> bob, the other thing to me that raises red flags is that you would think that after all these reports we've been doing, naming specific people and specific charities, that if they were on the up and up and they wanted to clarify things, they know where we are. we have an open invitation to any of these folks to come on the program and talk to drew griffin and yet there is not -- they are not. it's like they are all running for cover and stuff. transparency is incredibly

important, isn't it? >> transparency is the first rule of a successful donation to a charity. you want to know how are you using my hard-earned dollars? can you prove to me, charity, that you're being effective, that you're being efficient, that you're really making a difference? and i think it's something we expect today in today's charity world that every organization needs to be transparent and they need to be accountable. >> art, are there any ways for somebody to go back and see if their money is having a direct impact? >> well, you can ask the charity for a report on how they are doing and we require that charities that meet our standards do that. they should have an annual report that discloses how funds were spent, that talks about how they performed in relation to their admission, that talks about what their plans are for the future. these are things that every

donor should be able to get from every charity. and so we think that, yes, every organization ought to provide that if a donor asks. >> art, thank you very much. appreciate all that you do. credit card! pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! put it on my spark card! [ high-pitched ] nice doin' business with you! [ garth ] why settle for less? great businesses deserve the most rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? i have to know the weather patterns. i upgraded to the new sprint direct connect. so i can get three times the coverage. [ chirp ] [ manager 2 ] it's like working in a giant sandbox

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that does it for this special investigation. we're going to continue to watch these charities that drew's been reporting on and bring you any updates and investigate other charities as well. remember, there are a lot of good charities out there. don't let the questionable acts of a few stop you from helping others. "outfront" next, a french politician telling the u.s. how to run its economy doesn't add up. and iranians caught with 30 pounds of explosives, their target supposedly were americans. and a judge has ruled this pilot insane. >> oh, my god!

oh, my god. we've got israel, we've got iraq. >> does the ruling put jetblue on the hook for allowing him to fly that plane? let's go "outfront." good evening, everyone. i'm erin burnett. "outfront" tonight, ooh-la-la. france's most powerful woman sticking her nose in america's business. it is sort of her job to do that. christine lagarde, head of the imf, had a doom and gloom message for washington today. >> economic recovery remains tepid, and downside risks have intensified. what we see is clearly a risk that confidence be eroded. >> and she didn't stop there. she took on president obama, too. in fact, she called his $3.8