Legal Issues

by Mike Masnick

Supreme Court To Hear Telemarketer Case

from the how-is-keeping-85%-of-the-money-not-fraud? dept

The Supreme Court will hear a case this week questioning whether or not a telemarketing company that only gave 15% of the money they raised to the charity they claimed they were supporting was committing fraud. Telemarketers, not exactly known for being the most trustworthy bunch say that if the court rules against them it will hinder their ability to raise money for charities. Say what? There's a clear difference between a charity raising money, and a telemarketing firm tossing a tiny portion of the money they raise to a charity. If the telemarketing firm doesn't make it clear that they're going to keep 85% of the money you give them, then something is wrong. I realize that most people don't know that many charity fund-raisers end up keeping a large percentage of the proceeds, but 85% goes beyond any reasonable line.

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  • identicon
    AussieBruno, 3 Mar 2003 @ 5:36am

    charity scam

    If I knew only 15% of my donation was going to a charity there's no way I'd contribute. Charities are poorly run as it is. The local Toys for Tots bunch a few years back spent so much on fundraising, i.e. VIP charity dinners, that when they were done raising money they discovered they'd spent more than they got in contributions. Except for what toys were donated, they had nothing to hand out for Christmas. The local Marine Reserve unit (who co-sponsors Toys for Tots locally) had to launch a drive to get people to donate toys. Charities wonder why people kick in less every year. This is why.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 3 Mar 2003 @ 8:00am

    No Subject Given

    My own solution ---

    When the person at the other end starts the conversation with " I'm a paid solicitor for .... " I think they are required by law to do this and if a solicitor doesn't start the conversation this way, I always ask.

    Say, " I don't talk to paid solicitors " and immediately hang up.

    It's unfortunate because I think I do hurt some charities this way but I'd learned a long time ago that paid solicitors keep the lions share of your contribution.

    reply to this | link to this | view in chronology ]

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