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Of giving and getting taken
December 24th, 2008, 2:34 pm · 14 Comments · posted by Ronald Campbell
Just in time for Christmas, California Attorney General Jerry Brown delivers his more-or-less annual report on commercial fundraising for charity. If you’d like to add a little vinegar to your cup of holiday cheer, read on.
Bottom line: During 2007 commercial fundraisers collected $370.3 million from Californians — and delivered just $161.6 million, or 43.6 percent, to the sponsoring charities.
That’s actually good news. In 2005, the last time Brown reported on commercial fundraising, charities netted 36.5 percent. (His office never reported on 2006 donations; spokeswoman Christine Gasparac says the information was lost when they converted to new database software.)
The new report shows that, seven years after Orange County telemarketing king Mitch Gold went to prison, the county is still a hot spot for dubious charities. Gold built a nationwide network of telemarketers for a ragtag collection of dubious charities that typically got a few pennies of every dollar raised in their name.
Some of those charities are still in business today:
The American Deputy Sheriffs Association, whose name is so lucrative that Gold actually stole it, raised $1.38 million from Californians in 2007. ADSA - which in previous years spent donations on golf tournaments and staff lunches at Hooters - got 10 percent. The rest went to a telemarketer (and Gold spinoff), the Charitable Resource Foundation. Remarkably, ADSA raised this money while operating under a court-appointed receiver.
Santa Ana-based American Veterans Relief Foundation raised $122,940 from Californians in 2007. It got 12 percent after paying the fundraiser. The group was run for several years by Gold apprentice, disbarred lawyer and would-be parricide Joe Shambaugh, who has been on the run for two years from a federal fraud indictment.
Another former Shambaugh group, the Coalition of Police and Sheriffs, raised $131,944 from Californians in 2007 and kept 15 percent.
A third Santa Ana charity, the Association for Firefighters and Paramedics, raised $573,492 in California in 2007 and kept roughly 10 percent. It’s headed by Mike Gamboa, another former Gold guy.
While dozens of charities got 15 percent or less of what was raised in their names, some actually wound up with nothing but a bill from their fundraisers. Among the losers were several well-known charities and advocacy groups, including the Nature Conservancy, National Wildlife Federation and Planned Parenthood.
Charities sponsor money-losing campaigns, fundraising experts say, for the same reason grocery stores sell turkeys at a loss during the holidays: to lure customers in the door. For established charities, that means reaching out to former donors and recruiting new ones. The idea is that a few of these folks will become regular donors.
You can read Brown’s 307-page report HERE.
More Watchdog (special bad charity edition!):
State-run charity collects millions but gives little back
Telemarketing group spent charity funds on golf, Hooters
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Wow! Fundraising sounds like a VERY profitable business to be in!
Paulson is the new Gold. He raises charity for bankrupt friends. What a giver.
With this economy so bad. Maybe I should go into fundraising for myself, I mean uh, for charities.
Isn’t most of this just the incompetence of the rich children of very wealthy people and not necessarily malfeasance?
Thank you for letting us know about this. This is a great example of
investigative reporting! Jean Bland
Are thesehe people who call you on your phone during dinner. (telemarketers?)
This is why I don’t give to “Charity” and no one else should as well. There are other ways to help directly and you’re a fool to give to a charity that gives half “their” money to administration. These people are thieves in the lowest level- bottom feeders, spend your hard earned money wisely and let them get real jobs!!
Give to the Salvation Army. It’s one of the very few that has passed everyones test for charity work. Over 90% go’s the the people it supposed to help. Don’t give to United Way unless you support the quarter of a million dollar contracts it gives to its managers. It’s top heavy and upper management make good livings off the poor.
How about highlighting those charities like the American Red Cross who do a good job of keeping fundraising expenses low?
I only give to the American Red Cross. Don’t give to those lazy bums on the freeway exit ramps, especially the west 22 fwy at Beach Blvd. Most of these bums look healthy and probably can kick my arse but they’re too freaking lazy go look for work.
Good story. This is one area where there should be government involvement to approve and audit charities. The amount provided to beneficiaries should be concrete, measurable, validated and published so that we contributors can have confidence that our hard earned dollars are provided to those that need the money rather than unscrupulous fund raisers.
I’ve frequently been disappointed that I contribute $100 to a cause only to be bombarded with $100’s of dollars worth of mailings over many years. I want to give, but don’t wan my contributions spend on additional fund raising.
Anyone know of a reliable source of information related to various charities (% going to beneficiaries, use of funds)?
when i read some time ago that spoke persons for charity, usually famous and wealthy people, receive up to a million dollars or more for their duties that’s when i stopped giving. i thought they did out of the kindness of their hearts.
I turn my back on all organizations, except the Salvation Army. The Red Cross hires too many embezzlers.
Use http://www.charitynavigator.org to check on charities before giving. This site shows a breakdown of expenses so you can see which ones have high administrative costs. Not all are ranked, but it is a good start to finding charities where your donations will actually help those in need.