Attorney General Ellison requires fundraiser to pay back charity, bars founders from all future fundraising
August 30, 2024 (SAINT PAUL) – Minnesota Attorney General Keith Ellison today announced that he has reached a settlement with professional fundraiser Ride to The Chip, LLC (“RTTC”) and its founders and members Tyrone Creer and Alice Arenson. In an Assurance of Discontinuance, Attorney General Ellison alleges that RTTC improperly withheld a portion of the funds that it raised for its charitable partner, the Magnus Veterans Foundation (“MVF”). The Assurance also alleges that RTTC misleadingly claimed that 100% of the funds raised would go to charity when a portion of the funds went toward their profit, and that the organization failed to give donors legally required disclosures about, among other things, its for-profit status. The Assurance further alleges that RTTC failed to register as a professional fundraiser and file reports with the Office.
The Assurance bans RTTC and its founders from all future professional fundraising activities and requires RTTC and its founders to pay back MVF the money they owe the charity. The Assurance further requires the signers to pay $75,000 if they violate any part of the Assurance in the future.
“It is unacceptable for a fundraiser hired by a charity to keep money they specifically raised for that charity,” Attorney General Ellison said. “And we further won’t allow groups to falsely claim every penny of donations will go to charity when some of the money lines their own pockets. People who fundraise for charities need to register with our Office and follow the rules intended to make sure these dollars go to help the public and that donors are properly informed.”
Creer and Arenson founded RTTC in 2022, after which it organized a motorcycle ride from the Twin Cities to the Buffalo Chip Campground in South Dakota to fundraise for MVF. In 2023, the Attorney General’s Office received a complaint regarding concerns that a donation did not go MVF, as intended. The Charities Division launched an investigation under Minnesota’s civil charitable solicitation and charitable trust laws, which require those who hold charitable assets to adhere to strict registration requirements and fiduciary duties. In Minnesota, the Attorney General through the Charities Division has civil, not criminal, enforcement authority over the state’s charitable solicitation and charitable trust laws.
The Minnesota Attorney General’s Office makes available a number of publications and pamphlets about charitable organizations, charitable trusts, professional fundraisers, and nonprofit organizations generally:
- “A Guide to Minnesota’s Charities Laws” discusses key laws including the Minnesota Nonprofit Corporation Act, the Charitable Solicitation Act, and the Supervision of Charitable Trusts and Trustees Act, among other laws that require certain organizations to register with and provide notice to the Minnesota Attorney General’s Office.
- “Guide for Board Members” covers fiduciary duties of directors of nonprofit corporations and is meant to assist board members with the important responsibilities they assume when elected to a charity’s board of directors.
- “Nonprofit Organization Resources” contains a listing of resources covering charitable solicitation, professional fundraiser, and charitable trust registration, government agency contacts, and training and technical assistance providers.
Minnesotans with concerns about governance or other issues at a nonprofit may submit a complaint on the Attorney General’s website. Minnesota consumers may also contact the Attorney General’s Office by calling (651) 296-3353 (Metro area), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).