Secretary Of State Files Injunction

Against Carolina Youth Club

Patrick Gentry
January 25, 2018 - 3:21 pm
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South Carolina Secretary of State Mark Hammond said  his office has filed an enforcement action against the charitable organization Carolina Youth Club of America, Inc.

The injunction filed in the state Administrative Law Court seeks to block Carolina Youth Club and its officers from seeking donations in South Carolina. The agency cited multiple violations, including that the nonprofit has failed to file its 2016 annual financial report, and solicited contributions while its registration is suspended.

“The Carolina Youth Club has demonstrated blatant disregard for the law,” Hammond said in a release.  “Without the filings required under the Solicitation of Charitable Funds Act, we have no way of knowing whether the children who are “club members” are benefiting from this organization’s charitable purpose, and neither does the donor.”

The Carolina Youth Club operates by hiring children as independent contractors to sell cookies and other items door-to-door, while employing the charitable appeal that the funds raised are used to provide recreational activities, electronics, and scholarships for the children. The directors of Carolina Youth Club have operated similar organizations in other states, including New York, New Jersey, Maryland, Virginia and Georgia.

The injunction also claims Carolina Youth Club failed to disclose on its most recent registration statement that it had received a citation and fine from the South Carolina Department of Labor, Licensing & Regulation for violating child labor laws in its solicitation activities.

Hammond thanked South Carolina residents for notifying his office about their concerns  “We received several complaints about the Carolina Youth Club through our Online Charitable Solicitation Complaint Form that was launched late last year,” said Secretary Hammond.  “This enforcement action demonstrates that the people of South Carolina are committed to holding charities and professional fundraisers accountable and maintaining transparency in charitable giving.”

Since the registration of Carolina Youth Club of America is currently suspended, anyone who receives a solicitation from this organization should notify the Secretary of State’s Office immediately.  Concerned citizens may file a confidential complaint through the Online Charitable Solicitation Complaint Form that is available on the Secretary of State’s website at www.sos.sc.gov, or contact the Division of Public Charities at 1-888-CHARITI (242-7484).

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