Newspapers / Philanthropy Journal of North … / July 1, 1998, edition 1 / Page 18
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18 • Philanthropy Joimial of North Carolina July 1998 Solicitors keep 60 percent of funds raised for charity CONTINUED FROM PAGE 1 that it may call again, making fundraising easier in the long-run. While the figures seem stark, he says, the group gets more than it seems. Professional solicitors defend their business. The report, for example, says Facter Direct Ltd., a telemarketing company based in Los Angeles, kept all the money it raised for three organiza tions — Amnesty International, The American Spectator Educational Foundation and Handgun Control Inc. Tom Siegel, the vice president for Facter Direct Ltd., says the report is inaccurate. Siegel says “it is veiy frustrating” for his firm to undertake sohcitation programs that nonprofits “under stand is in their long-term interest.” Because such programs take time, he says, the charity may not see an immediate payoff, yet still can “have it reported as if the fundraising orga nization is taking advantage of the charity.” Randolph says all information in the report comes directly from docu ments the sohcitors are required by law to submit to the state. Xmharitable organizations have a responsiblity to use funds wisely." Lionel Randolph, chief of Solicitation Licensing Charities can avoid criticism by paying fundraisers a salary for their work, instead of a commission, or by hiring their own staff fundraisers Instead of contracting with sohcitors, Randolph suggests. “There are a whole lot of charities out there who wouldn’t have somebody get ting paid to raise money for them,” Randolph says, “Charitable organizations have a responsibility to use funds wisely. This report shows that maybe they’re not. No matter what we think of the charities and what cause they support, some are engaged in things that are not cost- efficient.” North Carolina requires sohcitors and charities to apply for licenses to raise money in the state. Applications can be rejected if the charity’s employees have been convicted of a sohcitation-related felony Sohcitors and charities operating in the state without a vahd hcense can face civil penalties imposed by the state. Charities can, however, pay hcensed professionals to raise money for them. Only 10 of the professional sohci tors on the report are based in the state. WHAT TO DO IF A SOLICITOR CALLS YOU Liortel Randolph, chief of the state's Solicitation Licensing office suggests the following when a phone solicitor asb for a charitable donption: • Ask if the organization/solicftor is licensed by the state and get the license number and expirotion date. • Ask the name of the caller and track the date and time of phone solicitations. • Ask if the caller is being paid to make the coll and the name of the fundraising company. • Ask what percentage of donations actually go to the charity. • Ask the caller to mail you information that you can use to make a decision regarding a donation. • Don't be pressured to make a donation to an organization who must have the gift right away especially cash gifts. • Don't be misled by a charity's familiar name. Some chorities may use a name that closely resembles that of a respected, legitimate organization. • Don't confuse "Tax Exempt" with "Tax Deductible." "Tax Exempt" means the organization does not have to pay taxes; "Tax Deductible" means you can deduct contributions to the charity on your federal tax return. : • Only donations to charities that are 501(c)(3) organizations as defined by the Tax Code qualify for tax deductions. • Be especially cautious for solicitations for out-of-state charities. For mom information, call the Solicitation Licensing Branch at (919) 733-4510; the Attorney ^ Generals' Consumer Protection Division ai(919) 733-7741 or.(919) 715-9439; and/or the local Better Business Bureau, for information regarding licensure, complaints and financial information. THE SOLICITORS Here are the 10 firms that solicited money in the year that ended April 30 from North Carolinians that passed along the lowest percentage to the charities they represented. Each figure represents the percentage of donations that actually went to the charities represented by the firm. Genessee Developmenl & Research Group, Inc. (Rochester, NY}.......: 0.00 Haines & Company/dba Americalist (North Canton, OH) 0.00 Coinstar, Inc. (Bellevue, WAj 0.00 Community Program Services (Jacksonville, NC) 0.00 Gary Buchanon (Pinsor, AL) 7.98 Contract Communication, Inc. (Chesapeake, VA) 11.99 Community Safety, LLC (Minneapolis, MN) 12.28 Non-Profit Telemedia, Inc. (North Little Rock, AR) 13.38 American Trade and Convention Publications, Inc. (Greenfield, Wl) 13.41 Reese Brother's, Inc. (Pittsburgh, PA) 14.03 Here are the 10 firms that solicited money in the year that ended April 30 from North Carolinians that passed along the highest percentage to the charities they represented. Each figure represents the percentage of donations that actually went to the charities represented by the firm. Meyer Association, Inc. (St. Cloud, MN) 75.75 Stocky & Ciminelti Marketing, Inc. (Matthews, NC). 74.39 Response Dynamics, Inc. (Vienna, VA).. ...66.17 CLEC Canvass Network (Washington, DC) : 61.46 Dial America Marketing, Inc. (Mahwah, NJ) ;...61.08 BGSTelemarketing, Inc. (Befhesda, MD}..... 60.18 Public Interest Communications (Falls Church, VA) .' 54.27 New Boston Communications, Inc. (Boston, MA) 54.18 L&M Promotions (Charlotte, NC) 52.89 Cjmmit Pror...'tic ■ . 7. 52.54 Need to fill a f 0 JOB right away? Post your job opening on Philanthropy Journal Online http://www.pj.org Ads posted every weekday. North Carolina Planned Giving Council August 19.1998 The Park Hotel 2200 Rexford Road, Charlotte, NC Presents: Mark Carmichael, J.D. Publisher and Director of Seminars for R & R Newkirk Company and President, National Comittee on Planned Giving Mr. Carmichael is a highly respected and nationally known speaker. He v.'ill address changes in the tax laws and creative planned giving methods within those changes. Presentations Including Philanthropist of the Year Award and Lunch 10:15 a.m. to 1:30 p.m. Cost: $25 NC planned Giving Council Members $40 for NSFRE Members $55 Non-members Reservations Required! Limited Seating. Please call Sandra Shell, First Union National Bank 1704) 383-8729 , .
Philanthropy Journal of North Carolina (Raleigh, N.C.)
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July 1, 1998, edition 1
18
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