It's not just in Vermont either. Recently, the California Attorney General's office revealed they found professional fundraising firms had raised $356 million in cash contributions last year but gave the charitable organizations less than 44% of that money!
It gets even worse. . . the Attorney General further revealed at least 77 "professional fundraising companies" actually cost the charities more than they collected! The American Diabetes Association Research Foundation lost more than $1 million to Futuremarket Telecenter, Inc. of Corpus Christi, Texas, according to this recently released information. Back in 2007, a Virginia-based charity lost nearly $4 million using the same fundraiser!
AG Jerry Brown encouraged donors, saying that Doctors Without Borders and Special Olympics Southern California received more than 70% of money raised on their behalf. (thank goodness) But at the same time, Mr. Brown warned charities and donors to do their homework ahead of time!
Multiple other charities around the country lost money as well...$100,000...$175,000, etc. Let's not forget 'for-profit' thrift stores that raised $18.5 million by buying product from the charities, but then only passed down 7% to the charitable organizations, as reported by this same California source. Some commercial thrift stores that were paid a fee or commission by charities raised $4.2 million but only passed 4.19% to the actual charities in 2008. Previously, in 2007, only 3.7% was passed back to the charity.
PEOPLE, it is high time we stand up for what is right! This is piracy, just like what is going on off of Somalia. In today's economy, even the smallest of donations is badly needed and greatly appreciated. We do not need to be allowing these unscrupulous fundraising companies to take advantage of the charities they pretend to be helping. I have long preached that if you want to help an organization - then just contact the organization yourself! I can assure you - without reservation - that any charitable organization or non-profit group you approach will be absolutely thrilled to accept your kind gift...no matter how large or how small. Don't let your hard-earned money be pilfered off from the charity you are so willing to help.
Do I think all fundraising companies act like pirates? Of course not...but like Mr. Brown recommended: Do you homework first. Find out ahead of time how much they charge? Do they charge for any additional expense or reimbursement? Ask - Ask - Ask! If it looks like they are charging too much, then approach another company to help you
But here is my suggestion. Why not help another group, like your group, by letting them help you. Confused? Don't be. Many churches, scout groups, band booster groups, etc would be happy to help you raise funds for your group, in exchange for a reasonable and fair percentage for their own non-profit group.
Be wise, ask question first and I wish you Ultimate Fundraising Success.
Sherie Smith
The Fundraising Designer
email: fundraisingdesigner@gmail.com
Twitter: Twitter.com/fundraisingdsnr
About Sherie Smith:
Sherie Smith shows people how to achieve the Ultimate Fundraising Success in her free multi-part minicourse which can be found at: http://www.3hourstofundraisingsuccess.com. Her newest book, '3 Hours to Fundraising Success', a step-by-step copycat manual to the $4,500 in 3 Hours project, will be released Year-End 2009.
Copyright c Sherie Smith All Rights Reserved
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