In a move to preserve the integrity of charitable giving in Tennessee, Attorney General Jonathan Skrmetti has initiated legal proceedings aimed at the formal dissolution of the National Foundation for Transplants, Inc., as encountered in a statement released by the Office of the Attorney General. The Memphis-based nonprofit, which has been instrumental in fundraising for organ transplant patients, is now under the legal microscope for allegations of mismanaging the very funds it was entrusted to safeguard for the benefit of those in dire need.
Following a series of complaints from transplanted patients feeling misled by the organization's promises, National Foundation for Transplants, Inc is accused by the Office of the Attorney General of presenting misleading information regarding its handling of specific donations intended for individual patients however upon its closure announcement, it became evident that funds patients thought were earmarked for them were actually pooled into a general fund. This revelation prompted an investigation into the charity's practices; the investigation embarked upon after the Attorney General's office was alerted to 47 distinct grievances voicing concerns about the fate of the funds following National Foundation for Transplants, Inc April 2024 cessation of operations announcement.
In response to these damning allegations, the Tennessee Secretary of State's office took administrative action by dissolving National Foundation for Transplants, Inc in December 2024 due to its failure to present the necessary annual report for the preceding year. Secretary of State Tre Hargett amplified the legal sentiment, emphasizing that the state of Tennessee holds a zero-tolerance stance against entities that exploit the goodwill of its citizens, declaring, "This important step announced today warns any individual or entity attempting to take advantage of the generosity of donors that their actions will not be tolerated in Tennessee," as stated by the Office of the Attorney General.
The Attorney General’s lawsuit delineates the crux of the deception, documenting that National Foundation for Transplants, Inc gave patients and donors the impression that funds raised "in honor of" or "on behalf of" an individual would be set aside solely for that person's medical needs but in the end, the promised funds devolved into a commingled reservoir of general assets, thereby prompting the judicial course of action under the Tennessee Nonprofit Corporation Act, which targets nonprofits engaged in persistent fraudulent activity or those who've strayed from their founding charitable principals. If the court rules in favor of dissolution, it would then supervise the equitable redistribution of National Foundation for Transplants, Inc remaining assets to another nonprofit, ideally one that upholds the original mission for which those dollars were donated, as reported by the Office of the Attorney General.
As the legal process unfolds, those who have doubted what happened to their contributions, whether they be former National Foundation for Transplants, Inc patients or donors, are advised to connect with the Public Interest Division at 615-741-5573 or to lay their concerns by filling out this form, as outlined by the Office of the Attorney General.
