Childhelp, the Scottsdale-based national child-abuse-prevention nonprofit, is currently defending a Colorado consumer protection lawsuit alleging it turned one-time street donations into unauthorized recurring monthly credit card charges. That case, Thomas v. Childhelp, was revived by the Colorado Court of Appeals in February 2024 after a lower court had thrown it out. Separately, Childhelp settled a California employment class action for $315,000 in 2025, and the organization itself was the victim of a $2 million embezzlement by a staff accountant who pleaded guilty to wire fraud.
The Colorado Recurring Donation Case
Christopher Thomas sued Childhelp under the Colorado Consumer Protection Act after, he says, agreeing to a single $10 donation to a Childhelp solicitor in downtown Denver and then finding recurring $10 charges on his credit card. His complaint alleges Childhelp used his card information without disclosing that the donation would repeat, and that other donors were treated the same way.1FindLaw. Christopher Thomas v. Childhelp, Inc., No. 23CA0431
The district court granted summary judgment for Childhelp on two grounds. It held that Thomas could not proceed individually because he had sought class certification and been denied, and that he had no damages because his credit card company had reimbursed the charges.2Law Week Colorado. Court Opinions: Colorado Court of Appeals Opinions for Feb. 15 Even in dismissing the case, the trial judge wrote that “the court is not condoning [these] fundraising activities, which the record strongly suggests are indeed deceptive.”1FindLaw. Christopher Thomas v. Childhelp, Inc., No. 23CA0431
On February 15, 2024, the Colorado Court of Appeals reversed and sent the case back down. It ruled that a plaintiff whose class certification is denied can still pursue an individual claim under the Colorado Consumer Protection Act. It also found genuine factual disputes remained about damages, specifically whether the credit card company’s reimbursement fell under the “contract exception” to the collateral source rule. Because Childhelp had not shown the reimbursement was anything other than a cardholder benefit Thomas paid for through his card agreement, the trial court was wrong to say he had suffered no loss.1FindLaw. Christopher Thomas v. Childhelp, Inc., No. 23CA04312Law Week Colorado. Court Opinions: Colorado Court of Appeals Opinions for Feb. 15 The case is proceeding on remand.
Other Donors Report the Same Pattern
Thomas’s complaint is not the only one. More than 50 consumers have publicly reported similar experiences between 2020 and 2026: a Childhelp solicitor approaching them outside a retail store such as Walgreens or CVS, an understanding that they were making a one-time donation, and later credit card statements showing monthly charges they did not authorize. Reports were still being filed as recently as March 2026.3BBB. Scam Tracker Report – Child Help
One donor filing a May 2025 report with the Better Business Bureau’s Scam Tracker said she had agreed to a single $30 donation in Denver and was then charged monthly until her losses reached $400.3BBB. Scam Tracker Report – Child Help Donors have also described trouble reaching Childhelp by phone to stop the charges, saying calls went to voicemail or were disconnected.
If You Were Charged Without Consent
Dispute the charges directly with your credit card issuer. In the Thomas case, the cardholder’s issuer reimbursed the unauthorized amounts, and the Court of Appeals treated that reimbursement as a benefit the cardholder had paid for rather than a windfall that eliminated his losses.1FindLaw. Christopher Thomas v. Childhelp, Inc., No. 23CA0431 Consumers have also filed reports with the Better Business Bureau’s Scam Tracker, which is where much of the public record of the recurring-charge complaints now lives.3BBB. Scam Tracker Report – Child Help
The California Wage Class Action
In May 2022, Stephany Cluck filed a class action against Childhelp in Riverside County Superior Court alleging unpaid minimum wages and seeking liquidated damages, along with claims under California’s Private Attorneys General Act.4UniCourt. Cluck vs. Childhelp, Inc.
The parties settled for a gross value of $315,000, covering 316 aggrieved employees across more than 8,600 PAGA pay periods and roughly 19,400 class-period work weeks. Attorney fees accounted for $105,000, litigation expenses $25,000, PAGA penalties $15,000, the named plaintiff’s service award $10,000, and administration about $8,400.5California Business & Industrial Alliance. Stephany Cluck v. Childhelp, Inc. The court gave preliminary approval in April 2025, and final approval motions were filed in July 2025.4UniCourt. Cluck vs. Childhelp, Inc. A separate wrongful termination case, filed by Cynthia Esparza in Orange County in June 2023, is on the public docket with limited detail available.6UniCourt. Cynthia Esparza vs. Childhelp, Inc.
Embezzlement and Audit Findings
Childhelp was itself the victim of a substantial fraud. Angie Brown, a Knoxville, Tennessee accountant employed by the organization, stole more than $2 million by forging 885 checks to herself between 2012 and 2020, then altering the check records to make the payments appear to go to legitimate vendors. Her household received more than $550,000 in unreported income tied to the scheme. She pleaded guilty in federal court to wire fraud and filing false tax returns and, under her plea agreement, faced 36 months in prison before U.S. District Judge Thomas Varlan.7WBIR. Knox Accountant Charged With Stealing More Than $250K From Child Abuse Charity Childhelp’s IRS filing for the fiscal year ending June 2020 confirmed a “significant diversion of assets.”8ProPublica. Childhelp Inc. – Nonprofit Explorer
Independent audits since then have flagged recurring control problems. The fiscal year 2022 audit raised a “going concern” flag and identified a significant deficiency in internal controls. The 2023 audit escalated the finding to a material weakness in internal controls, the most serious category. The 2024 audit again noted a significant deficiency.8ProPublica. Childhelp Inc. – Nonprofit Explorer Charity Navigator still rates Childhelp four stars with a 98% score, giving it full marks for producing independently audited financials and reporting no material diversion in its most recent filing, though it also gave a 0% score for the organization’s failure to post its tax forms on its own website.9Charity Navigator. Childhelp Inc.