Charities don't have rules on how much to give to needy - WAFF-TV: News, Weather and Sports for Huntsville, AL

Charities don't have rules on how much to give to needy

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Source: MGN Online Source: MGN Online

Less than 8 percent: that's how much reports allege the National Veterans Services Fund gave back to needy veterans as the charity pocketed millions. Donors are now suing the national charity.

Legal analyst Mark McDaniel told WAFF charities can spend any amount they want to in fundraising or salaries and it's not against the law.

McDaniel said they can get into trouble when funds are misappropriated, mishandled, or money isn't accounted for.

He pointed to federal audits as a way to keep charities in check  and prevent mismanagement, but there is no cap on how much or how little needs to go to people in need.

"It would shock the people to know when you give money to these really good ideas that not much of that is going to the charity," said McDaniel.

Experts advise heading to a website such as before donating to make sure you understand where your money will end up.

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