Table of Contents
Report a Donation Concern
If you have donated to a specific campaign or for a designated purpose and have concerns that your funds were not used as promised, please share your experience(s). Your information will be kept confidential and will never be shared without your permission.
Understanding Donor Rights
When you make a donation to a religious organization or ministry, particularly for a specific campaign or purpose, you have both legal and ethical rights.
Our investigation into Sean Feucht's ministries has revealed multiple instances where donations solicited for specific purposes may not have been used as promised. Understanding your rights as a donor is critical for ensuring accountability in religious organizations.
Key Legal Protections for Donors
Restricted Donations: Your Intent Matters
This law, adopted in most states, requires charitable organizations to honor donor restrictions and maintain proper accounting for restricted funds. It provides legal grounds for donors to enforce the terms of their gifts.
When you donate to a specific campaign or for a designated purpose, the nonprofit is legally obligated to use those funds as specified. This is known as a "restricted donation." For example, if you donate to a campaign specifically for:
- Building a church in Iraq
- Purchasing sound equipment
- Supporting a specific missionary
- Providing relief to disaster victims
The organization must use your gift for that specific purpose. Diverting these funds to other uses—even if they're for the organization's general mission—could constitute fraud.
Transparency Requirements
These regulations outline requirements for organizations to provide accurate information about their activities and how donations are used.
Organizations have a legal obligation to provide truthful information in their solicitations.
Churches have special exemptions from some disclosure requirements, but they are still subject to laws against fraud and misrepresentation.
Special Protections for Elderly Donors (65+)
Many states have enacted specific laws to protect elderly individuals from financial exploitation, including charitable solicitation fraud targeting seniors.
Donors aged 65 and older have additional legal protections against financial exploitation. Religious organizations soliciting from elderly donors have a heightened legal obligation to:
- Provide clear, understandable information without high-pressure tactics
- Allow sufficient time for decision-making, especially for large donations
- Respect designated purposes for restricted donations
- Maintain appropriate boundaries with elderly donors
Documented Patterns of Concern
Example: Sound Equipment Donations
Former staff have reported instances where individuals would receive donations specifically for sound equipment upgrades for their prayer rooms, but when the donors sent the money to Sean Feucht's organization, the funds were not made available when it was time to purchase the equipment.
"Various individuals would receive donations for their specific prayer room's sound equipment upgrade, etc. and Sean would demand that they send the money to him and tell them that whenever they were ready to buy the equipment just to reach out to his staff. When it came time to purchase the new equipment with funds that individuals had earmarked for the equipment they were told they can't have the donations back and Sean pocketed it."
Example: International Aid Campaigns
Investigators have documented concerns with how international aid campaigns were represented versus how the funds were distributed:
"Sean regularly solicits donations like: 'Click this donate button to send money directly to Iraq for x number of children…' yet only a percentage of donations are seemingly being given to what was advertised…"
Example: Bus Fundraising
Documentation shows instances of fundraising for a ministry bus replacement or repair after an accident, despite insurance likely covering these damages. Questions remain about where these donation funds were ultimately directed.
What Can Donors Do?
Protecting Yourself in Future Donations
- Research Before Giving: Check organizations on charity watchdog sites like Charity Navigator, GuideStar, or MinistryWatch.
- Get Written Confirmation: For significant restricted donations, request written confirmation that your gift will be used for its intended purpose.
- Follow Up: Ask for updates or reports on campaigns you've supported.
- Consider Donor-Advised Funds: These can provide additional oversight and documentation for your charitable giving.
Donor Legal Rights
When considering donations to ministries or religious organizations, donors should be aware of these specific legal rights and protections:
- Tax Deductibility (IRS)
- Donors can deduct gifts to IRS-recognized 501(c)(3) religious organizations.
- Donations of $250 or more require a written receipt with the amount, date, and whether any goods/services were received.
- Restricted Use of Donations
- Donors may specify how their gift should be used (e.g., 'only for disaster relief').
- The organization is legally obligated to honor such restrictions or refund the gift.
- Privacy and Solicitation Practices
- Donors have a right to privacy; religious nonprofits should not sell or share personal data without consent.
- Deceptive fundraising practices may be challenged under federal or state laws.
- Protection Against Fraud
- Donors are protected from intentional misuse of funds by DOJ, IRS, FTC, or State Attorneys General.
- Fraud, misrepresentation, or self-enrichment by leaders can lead to investigation or prosecution.
- Filing Complaints and Whistleblower Rights
- Donors may file complaints with the IRS Exempt Organizations Division or state authorities.
- Some whistleblower protections may apply under state/federal law.
Important Limitations for Religious 501(c)(3)s - Religious organizations are exempt from filing Form 990, limiting transparency. Courts avoid intervening in internal religious matters unless clear fraud is shown.