The Herald, Sharon,
PA Published Wednesday, Sept. 3, 1997

RELATED STORY

MERCER COUNTY

Telemarketers' cut of money varies

How much should a telemarketer profit from fund raising for a charitable organization, such as the Mercer County Humane Society?

The answer seems rather hazy.

According to the New York Better Business Bureau, a study released by the New York Attorney General's Office showed that telemarketers are more likely to profit from fund-raising campaigns than the charitable organizations they are raising money for.

In 1994, a total of $159 million was raised for charitable organizations through telemarketing. Only $53 million, or one-third, of those funds went to the charities.

Of those 584 campaigns, the Attorney General's report revealed, 482 had received more funds for running the campaign than were turned over to the charitable organization. The other 102 telemarketers received less than 50 percent of those funds.

Dan Langan, a representative of the National Council of Charitable Organizations said, even that's too much.

``If a charity spends more than 30 cents to raise a dollar,'' he said, ``that does not meet our standards.''

Langan said 75 percent of the funds should go to the program, with 25 percent going toward management and fund-raising costs.

In Pennsylvania, Langan said, the Attorney General seems to have an even tighter grip on who can raise funds and how much.

According to Carl Emerson from the Pennsylvania Department of State, both nonprofit agencies and their fund-raising solicitors need to register with the state 10 days before a campaign begins.

A contract between the nonprofit and the solicitor for the campaign must also be approved, he said.

While the Humane Society of Mercer County was registered as a nonprofit agency, neither of the companies hired by the society _ Ultimate Visions Fundraising and Marketing and S & G Marketing _ were found in the state's registration database.

Kevin Shiver, also of the state department, said the database would have be up to date, at least, within one or two weeks.

Former partner of S & G Marketing David Shipton said he was not aware of such a registration process since neither his partner nor a representative of the Humane Society had mentioned it.

Shipton said he received a letter from the Pennsylvania Department of State on Friday after The Herald had called to confirm that S & G and Ultimate Visions had been properly registered.

Shipton said he would be informing the state department that the company did not need to register now, since S & G had dissolved.

Mrs. Gramsky was not available to comment about Ultimate Vision's status.

Gerda Widmeyer, head of the society's board of directors, said she spoke last week with a representative from the Department of State about the laws of fund-raising. She said Ultimate Visions would be registering as the Humane Society's solicitor as soon as possible.



RELATED STORY


Back to TOP // Herald Local news // Local news headlines // Herald Home page

Internet service in Mercer County, only $20.95 a month!

Updated Sept. 3, 1997
Questions/comments: herald@pgh.net
For info about advertising on our site or Web-page creation: advertising@sharon-herald.com
Copyright ©1997 The Sharon Herald Co. All rights reserved.
Reproduction or retransmission in any form is prohibited without our permission.