Paid Fundraisers Pass

On Lowest Return To Charities In Decades

HARTFORD — Attorney General Richard Blumenthal and Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr, announced recently that paid charitable phone solicitors in 2006 passed on to groups that hired them an average of 32.79 percent of funds raised, one of the lowest levels in a decade.

Last year’s rate rivaled the approximately 32.8 percent turned over in 2004 and 1997, the lowest two of the last ten years. The amount was down nearly two percentage points from 2005 when paid phone solicitors turned over an average of 34.45 percent.

The information is in the 20th annual joint Attorney General’s Office-DCP report on charitable phone solicitors.

“Year after year, more than two-thirds of charitable contributions made through telemarketers fail to reach groups that hire them — draining countless dollars away from good causes,” Mr Blumenthal said. “Last year’s level — less than a third to charities and nonprofits — is unacceptably low. I urge nonprofits to drive a harder bargain or abandon the telemarketers entirely. These paltry proceeds should shock contributors, and they should insist on more money for worthwhile causes they support.

“Consumers should think twice before donating money over the phone. I urge donors to give directly, assuring their entire gift benefits the cause they wish to support,” Mr Blumenthal added.

Commissioner Farrell said, “Americans are a generous people. But as consumers and donors, they need to think twice and do research before reaching into their wallet to make a charitable donation. The information compiled and released today points out the real need to find out what ‘slice of the pie’ the charity is truly getting. Take your dollars elsewhere if too much of your donation goes to telemarketers and not to the true charitable purpose.”

The report found that paid phone solicitors raised $10.8 million for nonprofit, charitable, and public safety organizations in 2006, slightly more than the previous year. Of that, $3.54 million or 32.79 percent went to charities and nonprofits, with telemarketers pocketing the remaining 67.21 percent.

According to the report, 113 Connecticut organizations hired commercial telemarketers in 2006 to conduct 121 in-state phone solicitation campaigns. Police and firefighter groups conducted most of the campaigns — 92. They also received a slightly lower percentage of the funds — 32.35 — than the average for all groups.

The report separately lists 224 charitable organizations that conducted 322 multistate phone solicitation campaigns in which they contacted Connecticut residents as well as those of other states.

The officials suggested rules for consumers contacted by paid charitable solicitors:

*Make sure you are clear which organization is asking for money. Many charities have similar names.

*Ask how and where the donation will be used. Do not accept vague answers.

*Ask whether the person calling is being paid and what percentage of the donation goes to the organization.

*Never agree to give over the telephone; ask the solicitor to mail you information.

*Never give cash or agree to have someone pick up a contribution.

Mr Blumenthal and Commissioner Farrell further recommend that people call the Public Charities Unit at 860-808-5030 before responding to any phone solicitor.