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Fraudulent charities aren't always on peoples' radars when it comes to scams. Here's what to know about charity scams and how to avoid them.

Next month, Americans will honor the sacrifices made by members of the U.S. military on Memorial Day. The appeals from veteran charities will inevitably increase, as will the donations to these groups.

In-depth look at a charity that uses a tiny portion of the funds to actually help children. >> incredibly frustrating. >> reporter: these former employees say they're afraid of showing their faces because they're afraid of getting sued for telling the truth behind the kids' wish network. the charity raises millions and millions of dollars, 22 million just last year, according to its most recent tax filing. but uses less than 3% of that cash to fulfill wishes of sick children. the kids wish network does fulfill wishes, but these employees say, not by buying them with cash. the trips, the airlin...

The fbi showed up at her door. tonight, two more whistle blowers are speaking out here is part two. >> reporter: they are afraid of showing their faces because they are afraid on getting sued for what they say is the real truth behind the kid's wish network. the charity raises millions and millions of dollars, $22 million last year according to the most recent tax filing. but uses less than 3% of that cash to fulfill wishes of sick children. the kids wish network does fulfill wishes, but these employees say not by buying them with cash, the trips, airline tickets, amusement parks are donated a...

Sickening listening to -- they raised $127 million over ten years, and are giving 3 cents on the dollar actually to kids and basically getting the dow nated things and giving to kids. there is a lot of reporting on the kids wish network from us and "tampa bay times," wfla kept close track. have state regulators done anything? >> anderson, a spokesperson for the florida department of agriculture and affairs which regulates the non-profits confirms there is an investigation on going into the dealings of the kid's wish network. the state got lots of complaints but we've seen it time and time agai...