State Agencies Help Ensure Telelmarketers Are Legit

HARTFORD — Have you ever received a call at your business, or at home, from a charity looking to solicit donations, and wondered if the organization was either legitimate, or if it was being represented by a commercial business extracting the lion’s share of donated money to cover its own administrative expenses? Now a partnership of two powerful state agencies is being backed up by new legislation to help consumers understand exactly who is handling the fundraising duties and how much of a donation will end up going to the charity being represented by phone.

In addition, an increase in local telephone scams is all the more reason business owners and individuals should consult the companies outlined below or the state’s Consumer Protection website (www.ct.gov/dcp) to stay up to date on exactly what organizations are legally authorized to be contacting you at any given time.

Oversight of charitable solicitation activities in the state is a function of the Public Charities Unit, a joint program of the Department of Consumer Protection and the Office of the Attorney General. Registered charities are required to file annual financial reports that provide comprehensive information on their income and expenditures. Paid soliciting firms hired by charities are also required to register with the Charities Unit, file a notice of each upcoming solicitation campaign, and submit a postcampaign financial report.

This information serves as the foundation for any subsequent investigation of possible statutory violations that may be warranted. Such investigations usually include a detailed audit of the alleged offender’s financial records. If a violation is established, the unit proceeds with one or more of the following enforcement options: a civil suit in Superior Court, a criminal arrest, or an administrative action to revoke or suspend the registration of the charity or the paid soliciting firm.

The Charities Unit works closely with local police, attorneys general from other states, and various state and federal agencies. The unit also compiles and disseminates comprehensive statistics on charitable activity in Connecticut as well as on the activity of paid soliciting firms; it also receives and responds to complaints and inquiries from the public, businesses, and law enforcement agencies.

A recent change to the State Solicitation of Charitable Funds Act is providing ways to inform residents and local businesspeople about upcoming statewide fundraising campaigns that plan to use paid solicitors. As a way of helping consumers make informed decisions, the Connecticut Department of Consumer Protection will provide information on such campaigns, including the names of the paid solicitor and the charitable organization, the dates of the fundraising campaign, and the percentage of the raised funds that will be retained by the paid solicitor through its website.

By providing details of the contract between the charity and the fundraising company, the new public notices will let consumers know in advance how much of each dollar they donate will reach its intended destination, and how much will be retained by the paid solicitors.

In its most recent release, the Department of Consumer Protection and the Office of the Attorney General announced that Environmental Action, Inc of Boston will be conducting a telephone solicitation campaign beginning January 16 and ending December 31, 2006. Environmental Action, Inc has hired Grassroots Voter Outreach, Inc of Boston to conduct the campaign.

According to the fundraising contract filed with the state, Environmental Action will receive a minimum of 0 percent of the gross funds raised from this solicitation. Grassroots Voter Outreach will be required to file a financial report on the results of this solicitation campaign within 90 days after the end of the campaign.

The American Society For The Prevention of Cruelty to Animals (ASPCA) of New York City will be conducting a telephone solicitation campaign beginning January 16 and ending December 31, 2006. The ASPCA has hired Telefund, Inc of Boston to conduct the campaign.

According to the fundraising contract filed with the state, ASPCA will receive a minimum of 0 percent of the gross funds raised from this solicitation.

According to the most recent financial report on file (for the year ended December 31, 2004), the ASPCA reported total revenue of $50,267,338. It spent $45,429,824, including $34,893,888, or 77 percent, on its programs (the purposes for which the organization was formed), $659,930, or one percent, on management and general expenses (primarily the costs of running the organization); and $9,876,006, or 22 percent, on fundraising.

Telefund will be required to file a financial report on the results of this solicitation campaign within 90 days after the end of the campaign.

Human Rights Campaign, Inc of Washington, D.C., will be conducting a telephone solicitation campaign beginning January 16 and ending December 31, 2006. Human Rights Campaign has also hired Telefund to conduct its campaign.

According to the fundraising contract filed with the state, Human Rights Campaign will receive a minimum of 0 percent of the gross funds raised from this solicitation.

On its most recent financial report on file (for the year ended March 31, 2004), Human Rights Campaign reported total revenue of $19,833,854. It spent $17,416,858, including $11,251,443, or 65 percent on its programs (the purposes for which the organization was formed), $2,825,106, or 16 percent on management and general expenses (primarily the costs of running the organization), $3,340,309, or 19 percent, on fundraising.

Telefund will be required to file a financial report on the results of this solicitation campaign within 90 days after the end of the campaign.

Norwalk Firefighters Association (NFA) Local 830 of Norwalk will be conducting a telephone solicitation campaign beginning January 16 and ending January 15, 2007. Norwalk Firefighters Association Local 830 has hired Northeastern Concert Productions Corp of Stamford to conduct the campaign.

According to the fundraising contract filed with the state, NFA Local 830 will receive a minimum of 40 percent of the gross funds raised from this solicitation.

According to the most recent financial report on file (for the year ended December 31, 2004), NFA Local 830 reported total revenue of $138,787. It spent $169,535, including $14,545, or nine percent, on its programs (the purposes for which the organization was formed); $72,623, or 43 percent, on management and general expenses (primarily the costs of running the organization); and $54,152, or 32 percent, on fundraising.

Northeastern Concert Productions Corp will be required to file a financial report on the results of this solicitation campaign within 90 days after the end of the campaign.

Danbury Police Benevolent Association (DPBA), Inc of Danbury began a telephone solicitation campaign on January 10, which will be ending December 31, 2006. DPBA has hired TCI America, Inc of Seekonk, Mass., to conduct the campaign.

According to the fundraising contract filed with the state, Danbury Police Benevolent Association, will receive a minimum of 35 percent of the gross funds raised from this solicitation.

According to the most recent financial report on file (for the year ended December 31, 2004), DPBA  reported total revenue of $64,957. It spent $57,837, including $53,666, or 93 percent, on its programs (the purposes for which the organization was formed); $3,524, or six percent, on management and general expenses (primarily the costs of running the organization); and $647, or one percent, on fundraising.

TCI America, Inc will be required to file a financial report on the results of this solicitation campaign within 90 days after the end of the campaign.