NASHVILLE, Tenn. -- A former worker for a charity fundraiser said the practices used by the company were deceitful, and the state calls their actions illegal.

A state law says that people who solicit money are supposed to tell the public who they work for. The law is in place so there is no confusion if all of the money that is donated is going to a charity or somewhere else.

Shoppers in middle Tennessee may have seen young, energetic people, set up at tables in malls and grocery stores during the holiday season asking for money to help police buy toys for children.

However, the Channel 4 I-Team found out who is really getting the most from donations.

At first glace, it appeared that the fundraiser is for Drug Abuse Resistance Education. At the table, there was a DARE logo and a sign that said The Great Toy Drive.

Workers at the table even said they were part of a DARE fundraiser.

"We're helping out the DARE program. Are you familiar with DARE?" one of the workers stated on a hidden camera.

But the people at the table don't work for DARE and are not part of a charity.

The people work for a for-profit marketing company called KDL Marketing located on Linbar Drive in south Nashville.

By state law, representatives from KDL are supposed to tell the public, before they ask for a single donation, that they are paid solicitors who work for a private company raising money for a charity.

But again and again, the I-Team did not hear any of those statements when waved over to the company's table.

"We're doing a toy drive with DARE. Have you heard of DARE before?" said the KDL employee .

Channel 4 asked exactly who they were affiliated with.

"So, is this like a charity kind of thing? A DARE thing?" asked Channel 4 reporter Jeremy Finley.

"Yeah, and you do get a receipt as well," said the worker.

In fact, the workers made it a point not only to mention DARE, but also the stores they were in front of that were not a part of the fund drive at all.

"Today, we're doing a special with Sears and DARE," said a KDL employee.

"I'm here with the Bass Pro Shops helping out the kids with a toy drive," said another KDL employee.

After getting these statements on tape, Channel 4 visited the state to see what they thought of this company's practices.

"So are they breaking the law?" asked Finley.

"They are," said Todd Kelley of the Tennessee Department of Charitable Solicitations.

Kelley said Channel 4's hidden video proves again and again that the fundraiser ignored state law to identify themselves as paid solicitors.

He fears most consumers who encountered these people were deceived.

"They clearly thought that Bass Prop Shops was sponsoring the fund drive for the DARE program, which is not the case," said Kelley.

In fact, the fundraisers never told who they really worked for until the Channel 4 I-Team repeatedly asked.

"Does DARE set this up?" asked Finley.

"Yeah," said one KDL worker.

"You guys are with DARE?" asked Finley.

"Yep," said a KDL worker.

It turned out that the third time was the charm. That's when they said they actually worked for a marketing group.

"But are you actually with DARE?" asked Finley.

"No, we work for a marketing group," said a KDL employee.

"That just goes to show if people are willing to ask questions, that they will uncover the truth," said Kelley.

Donors were even told by the organization that "not only are we helping out with the toys, we give a portion of the proceeds back to DARE."

However, the I-Team learned that only 5 percent of the money raised actually goes to DARE.

So, then how much did KDL raise for DARE over the holidays?

Middle Tennesseans donated $24,000 during the toy drives between December and January, but because KDL only gives 5 percent to DARE, the charity reports it received $1,200.

"It's a very small amount," said Kelley.

The children did get the toys, but the rest is money in the pocket of KDL Marketing.

"The majority of the proceeds is just for the company itself," said a former KDL employee.

The former worker of the parent company of KDL Marketing did these kinds of sales until he said his guilt caused him to quit.

"It's just not right," said a former employee. "I just felt like it was lies and being deceitful."

He said he was trained to sidestep who he was really working for and to focus instead on shoppers' kind hearts.

"You try to get them to focus on what you are trying to help the kids," said the former employee.

Channel 4's questions for KDL Marketing were never answered. When Finely went by the company's office, it was empty with no employees.

The state Department of Charitable Solicitations said it recently got a call from a representative for KDL Marketing that said the company was leaving middle Tennessee. They representative did not say where the company was going.

Channel 4 spoke with the southeast regional director of DARE America. He said what the I-Team hidden camera video showed is "clearly something we don't accept." He said all paid solicitors DARE America contracts with are told to follow all state and local laws.