The word was invented by Patricia Chapin, a member of the urban legends discussion mailing list run in conjunction with this site. At a loss for words to describe the retching sensation this then-unnamed category of stories subjected her to, she fashioned a word that simultaneously named the genre and described its effect.
Glurge (a term which can be used to describe one story or applied to the genre as a whole) is the body of inspirational tales which conceal much darker meanings than the uplifting moral lessons they purport to offer, and which undermine their messages by fabricating and distorting historical fact in the guise of offering "true stories." Glurge often contains such heart-tugging elements as sad-eyed puppies, sweet-faced children, angels, dying mothers, or miraculous rescues brought about by prayer.
From Snopes.com. Until today, I did not know there was a word for this. This is good to know.