Private Groups Pocket Vet Donations
Analysis of Fund-Raising Data Reveals Some Non-Profits Only See Tiny Fraction of Donations
The Marine Corps. War Memorial (WDCpix)
By Matthew Blake 07/11/2008
The charitable organization, American Veterans Coalition, places in the center of its Web site an eye-catching statistic -- 33 percent of the homeless are veterans. A few sentences later comes the fund-raising pitch: a "simple donation" from "patriotic citizens like yourself" to a veteran in need would amount to a "heroic effort."
The problem is that if this donation were made, whether over the phone or through the mail, only 14 percent of would go to American Veterans Coalition. The rest would go to the for-profit firms paid by the veterans' charity to raise money on their behalf -- primarily through telemarketing and direct-mail solicitation.
Records made public in The Los Angeles Times this week from the California attorney general's office document the national fund-raising campaigns of non-profits who registered with the state of California. These range from veterans' charities to international relief organizations, like the American Red Cross, to advocacy groups, like Planned Parenthood.
Of the more than 5,000 national fund-raising campaigns registered in California between 1997 and 2006, about $2 billion was raised on behalf of charities. But only around 50 percent of the money taken from donors actually went to the charities. The rest stays with the commercial fundraiser.
To anyone that has given to charity through a solicitation, the data is likely disconcerting. Some of the most emotionally appealing charitable organizations seem to have some of the most inefficient fund-raising practices. These include groups that promote animal welfare and also police and firefighter associations. It also includes a set of veterans' charities that have already faced scrutiny from a Congressional committee and a philanthropy watchdog group.
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