Charitable organizations often find that potential donors are hesitant to contribute to charities that spend an excessively high percentage of their donations on fundraising costs rather than their core mission. Knowing this, a charity that is dedicated to helping wounded war veterans deliberately misclassified marketing expenses as War Veteran Service Expenditures. This resulted in a misclassification of expenditures, category by category, but it did not misstate total expenditures.
a. Did this charity violate SOX?
b. Did this charity commit any other violations?