CONSUMER FORUM

When a solicitor calls, ask how much of your donation actually goes to charity

Posted April 13, 2014, at 10:40 a.m.

The caller was straightforward, stating up front that he was being paid to solicit funds on behalf of the Maine State Federation of Firefighters.

The cause: to aid the families of fallen firefighters. No argument there. However, as a consumer advocate, I had to ask the question. How much of what you raise goes to the federation?

The response stopped me cold.

“I’ve been instructed to tell people who ask that, [that] at least 15 percent of the money goes to that cause,” the caller said.

“Fifteen percent?” I asked in disbelief.

The caller thanked me for my time and ended the call.

He was being accurate. Companies that solicit Maine consumers by phone must register with the state Department of Business and Professional Regulation. Outreach Calling, the firm making the call to our home, reported last year that during 2012, it returned exactly 15.00009885 percent of funds it raised to Maine State Federation of Firefighters.

Outreach made similar reports to Maine on the 16 other charities for which it raised funds.

“Cancer” was a key word in the names of five of those charities; other beneficiaries included veterans, children and public safety groups. Several of the groups also received around 15 percent of funds raised; in 10 instances, the return to each was almost exactly 10 percent.

Why employ a phone solicitor that gives back only a fraction of what it collects?

“We do it because it’s effective, and it raises money for us,” said William Vickerson, the attorney in Portland representing Maine State Federation of Firefighters.

He told me that most members of the Maine State Federation of Firefighters are volunteers, and fundraising is not their strong suit. If they sold cookies or calendars, they’d have overhead that would eat into any proceeds raised.

“With us, the gross profit is also the net profit,” Vickerson said when pressed on the 15 percent return.

He said Outreach has been responsive to concerns he has voiced in the past when consumers complained about particular callers or solicitation techniques. He also said most of those complaints were unfounded, based on recordings of the calls which Outreach routinely makes.

You might wonder why you receive such calls, if you’ve been placed on the National Do-Not-Call list. Charitable causes are one of those exempt classes as are political calls, which we’ll all receive soon in growing numbers.

Some consumers when called routinely say, “Put me on YOUR do-not-call list,” and some of them report success (results may vary).

Charity Navigator, a major watchdog group, rates more than 7,000 charities on its website ( www.charitynavigator.org), including two dozen involved in fighting breast cancer. Together, the charities raised $1.8 billion; but the percent of its budget that each spends to raise money varies, from a low of 2 percent to a high of 91 percent.

Advocates like to see at least half of all money raised going to the cause to which they were donated; so, we think, do donors.

Charity Navigator, Guidestar and other research groups offer help in choosing which causes to support. GreatNonprofits.org offers people familiar with a charity’s operations a chance to share experiences with others.

Last year, the Tampa Bay Times and California-based Center for Investigative Reporting did extensive research and rated America’s 50 Worst Charities. Outreach Calling made the list, based on returns of 9.8 percent to 15 percent for six charities reviewed in 2010 and 2011.

William Vickerson says, so far, Maine State Federation of Firefighters has not been able to find a fundraiser that can do better in Maine.

Asked if the federation will keep looking, he replied, “We’ll do it. We always do.”

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

 

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