Minnesota Attorney General Keith Ellison announced a settlement with professional fundraiser Ride to The Chip, LLC (RTTC) and its founders Tyrone Creer and Alice Arenson. In an Assurance of Discontinuance, Attorney General Ellison alleges that RTTC improperly withheld a portion of the funds raised for its charitable partner, the Magnus Veterans Foundation (MVF). The Assurance also claims that RTTC misleadingly stated that 100% of the funds raised would go to charity while some were used for profit and failed to provide legally required disclosures about its for-profit status. Additionally, RTTC did not register as a professional fundraiser or file necessary reports with the Office.
The Assurance bans RTTC and its founders from all future professional fundraising activities and mandates repayment to MVF. It also stipulates a $75,000 penalty if any part of the Assurance is violated in the future.
“It is unacceptable for a fundraiser hired by a charity to keep money they specifically raised for that charity,” Attorney General Ellison said. “And we further won’t allow groups to falsely claim every penny of donations will go to charity when some of the money lines their own pockets. People who fundraise for charities need to register with our Office and follow the rules intended to make sure these dollars go to help the public and that donors are properly informed.”
Creer and Arenson founded RTTC in 2022, organizing a motorcycle ride from the Twin Cities to Buffalo Chip Campground in South Dakota to raise funds for MVF. In 2023, the Attorney General’s Office received a complaint regarding concerns about a donation not reaching MVF as intended. The Charities Division launched an investigation under Minnesota’s civil charitable solicitation and charitable trust laws, which require strict registration requirements and fiduciary duties for those holding charitable assets. The Attorney General's Charities Division has civil enforcement authority over these laws.
The Minnesota Attorney General’s Office provides various publications about charitable organizations, trusts, professional fundraisers, and nonprofit organizations. Minnesotans with concerns about governance or other issues at nonprofits may submit complaints on the Attorney General’s website or contact the office via phone.
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