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Why You Shouldn't Let Telemarketers Help You Donate

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Earlier this week we posted a warning to watch out for calls from people asking for donations on behalf of local police or fire departments. Today an alleged former employee—who says he quit after two days of training and one day of seeing what it was really like on the call center floor—wrote in to tell us a little more about how a company on the other side of that phone call works.

He writes:

[The company I worked for, Civic Development Group,] operates out of Austin, TX, behind a nightclub. This is one of those companies that hires people by means of business cards "left behind" at bus stops. There is a severely high incentive to hire your friends on, additional pay being given for any new hires you recommend.

Additional incentive exists to force an upsale from any customer you speak to. The "sale" in question is a donation, with a sticker being given that you can put on your car to show that you supported the companies and organizations that [the company] claims to be representing.

In the company policies, it is demanded that you never refer to any decision or offer being on behalf of "Us" or "We". This is geared specifically towards protecting the company from lawsuit, and allowing the employee to be sued if any customer suddenly wants to.

I know all of this because I used to work there. Three days, actually. The first two were training days, and when I saw what was actually done on the floor, I quit at the end of the day.

We don't know if our tipster really worked for CDG, but it got us wondering about the company itself and its relationship to Oregon. Through Google we found a mention of Civic Development Group, LLC, in a 2005 report (pdf) on charitable giving released by Oregon's Department of Justice. Page 9 shows that CDG was a recognized telemarketer soliciting contributions for the Oregon Volunteer Firefighters Association, but that the net proceeds to charity were only 13 percent—one of the lowest percentages of any of the organizations listed in the report.

By contrast, the organization cited in the article we posted about earlier this week—which Oregon's Attorney General has banned from the state for three years for misleading consumers—had a 50% net proceeds to charity rate in 2005 (see page 12).

Our take? Consumer Affairs was right—you shouldn't do business with these telemarketers. The amount of your donation that actually ends up going to the organization is paltry, when you could just as easily contact the organization yourself—or some national group like the Red Cross—and donate.



"Charitable Giving; It Makes a Difference" [Oregon Crime Victims Rights]

RELATED
"Don't Donate Money To Public Safety Organizations Over The Phone"
(Photo: StephenMitchell)

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Comments:

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I wonder if you ask them what company they are employed by if they answer truthfully, lie or hang up the phone. I always have the same guy calling my house for the firefighters, bullet proof vests for police, etc so that might be a quick way to do some fact checking on them.

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I just go by a general rule of: never donate over the phone...ever.

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With a great number of these fundraisers, including ones like CalPIRG and Greenpeace and so forth, the cold callers who are getting you to donate are often getting up to 40% of your donation in their pocket. Now I realize that coldcalling sucks and that they get a lot of "no's" before they get a "Yes" -- particularly in this economy -- but to me, the idea that if I give $100, $40 will go into some phone rep's pocket just doesn't seem like a good use of that money. So if I do decide to donate, I do so directly by sending a check or through the organization's website, rather than from some guy calling to solicit me.

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@calchip: Also keep in mind that that might be the only pay they get, or if they get paid otherwise, it might be a very small amount.

A lot of the "employees" in these situations are independent contractors, so the company doesn't have to worry about minimum wage.

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Wow 50% net proceeds to charity rate is actually not bad, by the standard of telemarketer. Not saying I am satisfied but I guess they must did something else bad enough to get themselves banned.

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I just have to say: I want that phone! Actually, on second thought, I want a blue version of that phone. It is awesome!

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Also, door-to-door fundraisers who may appear to volunteers are sometimes working with an organization that pays them a portion of what they raise

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I'm glad I will no longer feel guilty when these guys call me. I always say no but sometimes I feel a twinge. I get over it though. Now it will be easier!

Thanks Consumerist!

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I got the strangest call from one of these folks once. When he paused after asking me to donate, I said "No, and please remove my name from your list." I got as far as "please remove" and he started talking over me, very loudly, eventually shouting, saying he couldn't hear me and wouldn't I donate for the poor policemen who are sacrificing so much (and so on...)

I guess if he pretended he couldn't hear me, he didn't have to remove me from his list.

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@nsv: I tried that once too. I remember him saying, "The do not call list doesn't apply to us!" Which is not even what I was talking about.

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@dragonfire81:

I only buy candy bars from the disadvantaged youts selling them in front of 7-11.

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@cowboyesfan:
I only donate to Santa, especially on cold days.

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@Kimaroo - No Stars Upon Thars: That phone is the same colour as my hair. Shallow as I am right now, I WANTS IT.

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@FDCPAGuy:

In my experience (a similar company called me monthly, toward the end of the month, using rotating faked callerID numbers but always with more or less the same schpiel and occasionally with the same people), if you ask who employs them they will give the name of the charity. If you press them for their actual employer, they will either get belligerent or just hang up.

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@UniComp: I like donating to toy drives. Only someone truly evil would take the toys and resell them to get any sort of profit, so you know that 100% of your donation is going to a good place.

And if someone is truly that evil, Santa will be paying them a very special visit.

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to those in NY/CT...be cautious with the teenage/twentysomethings dressed nicely standing outside grocery/drug/donut places. They claim to represent DARE, toys for tots, etc. and DBA CSI aka "Child Safety Inc."

if you want to donate, go directly to such charities and skip all the middleman BS.

sorry for going off track, but I wanted make aware a shady business that detracts from the donation cause.

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if you buy anything from or give anything to telemarketers it only encourages the practice and those companies don't need any encouragement.

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I plan my charity budget pretty carefully so there's usually little room for on-the-fly donations. (United Way via payroll deduction all year, I fund-raise for the local children's hospital most of the year and I hold back a bit for the local women's shelter.

Always donate directly to the charity or to orgs like the United Way which distributes the funds to member charities. It maximizes the $$ getting to the people who need it and, bonus, you get to talk to people associated with it.

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Like the red cross donations are that high...pfft.

Can I just give a word of advice to people out there...if you want to donate something DONATE stuff. Not cash. And only donate stuff to organizations that are going to give the stuff to other people, not sell the stuff and then give the proceeds (less admin expenses wink wink) to needy people.

Usually these are LOCAL organizations not Goodwill, Salv. Army, Make A Wish, etc. Do you really want to donate cash to an organization that pays their president/ceo over 100k a year?

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@nstonep: Thank you, I also have a problem with the 'charity' called the Red Cross.

Might I add Second Harvest and your local homeless shelters/food banks.

A good read on the charity thing is here:
[articles.moneycentral.msn.com]

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There are so many "charities" that are just huge scams these days. I have a friend in NYC who was super excited to get a job for a non profit 501c3 that helps people from foreign countries get some sort of aid (I'm not really sure what they did). She quit after just a couple days because she realized the entire thing was just a huge scam. They skimmed most of the money off the top and many times, they led people on thinking they would qualify for aid when really they did not.

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@nstonep:

Well if it is a huge organization they are going to need someone to manage them properly. Do you really think that someone with that kind of expertise and experience is going to leave the for-profit private sector where they could be making millions to work for peanuts? For an example of what poor leadership can do to a non profit, look at what the Red Cross has become compared to what they used to be. They were ran into the ground by their CEO. Sure, this guy was being paid a lot so it doesn't really help my argument, but it does show that decision making at the highest levels can have a massive impact on the organization.

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I worked for this same company in Austin years ago, when they were called Southern Educational Council. The used to pay their client a flat fee of about $4000/yr to use their name and kept all the donations. I also quit on the 3rd day. They always had some excuse about why I couldn't get my paycheck (it was in the safe, noone had a key, a manager had to be there to sign off, they had sent it back to corporate) so I finally gave up. They did manage to report my "earnings" to the IRS, so I still had to pay taxes on it.

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@FDCPAGuy: I just always report them to the state AG. They stop calling.

Some of these yahoos have an injunction against them in IL forbidding them from calling to solicit donations in the state. So when they get reported, they get fined.

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That's why I never donate anything to anyone, even if it is in person.


Just about everything over the phone is a scam these days. I once interviewed at a "bankruptcy law firm". I thought I would be helping people file for bankruptcy or at least give them some sound financial advice. No, the entire operation was geared towards taking calls from financially strapped people looking for advice about possible debt consolidation, and just upselling them into a pre-packaged bankruptcy regardless of their fiancial situation and whether it would actually be appropriate for them. During the interview they had me sit down with one of the "lawyers" on the phone to see how it works, and after about 20 minutes of seeing how this worked I walked out of the place.

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@runchadrun: Yes and they're up front about it. I don't this year's brochure at hand but it's a reasonable amount IMO.

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@nstonep: As a Red Cross volunteer, i have to say please do *not* donate things to the Red Cross, or if you want to please call your local Chapter first before driving over. We can't always accept "in kind" donations (esp. in the early days after a disaster) and really a cash donation will do more good.

And as a volunteer i've seen what a little bit of money can do... i helped out at a single family fire a few months back and while we were only able to give her a little bit of money to help her restock her kitchen after a terrible kitchen fire, the fact that we came, we cared, and we were able to help a little bit meant a lot to the homeowner. We used to be able to do a lot more, but money is really tight... yes, the Red Cross had a crap CEO for a while, but i hope that the organization is starting to get back on its feet. I've seen the good the Red Cross does, it's what keeps me volunteering.

Or don't forget, if you can't donate stuff and you don't want to give cash, you can always donate time. Most charities suffer from too much to get done and not enough people to get it done. Spending a couple of hours a week at the charity of your choice can sometimes be even more worthwhile than cash.

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Hi. Please come visit me in Brooklyn. I have a bridge I can sell you at a great discount.@Mackinstyle:

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Personally I donate to single mothers who are trying to pay their way through college. I usually donate 1 dollar at a time but sometimes I will donate as much as 20 dollars at a time.@cowboyesfan: @RecordStoreToughGuy_HadCakeAndIceCreamForLunch:

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I one donated $10 to the local police dept, thinking it was a nice gesture for the work they do. Every year after, for several years, they'd call me several times, harassing me for more money. They'd try to lay guilt trips on me, saying 'Don't you want to help us out again? Don't you know we need your support? Is there some reason you helped out once, but don't want to be as generous again this year?" I'd had it and told them not to call anymore.

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I used to work for this exactplace but the one out of Evansville, IN back in like 1998. I was 16 at the time and it was decent money since I referred a bunch of my friends from school but I had to stay there for so long to get paid for them.

I made it about 2 months before I just felt like crap asking people who are on social security to donate at least ten dollars. There was a whole script to help close especially for them.

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@calchip: For a brief period I actually worked for the company that calls for Greenpeace (and a lot of other left leaning charities) called "The Share Group". It's located in Somerville MA and believe it or not if you were on the right call you could max out the bonus and make $45/hour and people did it regularly. The big money was in getting the donation on plastic and or getting sustainer pledges (agreeing to auto-withdrawing monthly donations).

Then somebody at the top woke up one day and realized they could pay us a max out of $15 an hour and get the same results. They invested in new management that only cared about the ratio of calls you made an hour and thats when I quit.

If any of you give to the Special Olympics or the World Wildlife Fund, I know where they call from too. It's Integral Resources located in Cambridge MA. This is basically the home of The Share Group's flunkies. If you got caught shooting up, snorting lines or putting fake pledges through and got fired you go to Integral. They pay you a max out of $12 an hour and anything goes as long as you never hang your phone up and stay open the whole shift.

So if these two companies are any indication of the "telefundraising" industry I don't recommend giving or encouraging their shit.

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@discounteggroll: I live in Michigan and there is a strip mall I go to where children loiter and attempt to sell candy for their "church". I have seen these children in the stores with their mom buying clothing. Coincidence? I think not.

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Donate goods and services directly to the person in need.


When I was a child and had a moment of need, the big organizations ignored my need. Said the need wasn't serious enough or critical enough. But a kind gentleman stepped in and gave me a helping hand. Something you never forget.


So I quietly donate directly to people in need. A small donation can have a big (and positive) impact.


These days I donate Wal-mart gift cards.


Seriously.


A family in need (fire, flood etc) will need a variety of STUFF. Baby diapers, fresh veggies, dog food, shoes, cleaning supplies. You name it, Wally-World most likely sells it, and a family in need can use it.


Oh, and it keeps the $ donated from being used to buy drugs on the street corner. Yea, yea, they can still buy their meth precursers at Wally-World but maybe, just maybe they will buy some baby food to the little one and shoes for the oldest.


Maybe I am getting cynical in my old age, but I would rather know my donation put food on the table or clothed a child than being spent on illegal drugs.

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@calchip: I worked for the National Environmental Law Center one miserable summer going door to door asking for donations. I kept 35% of what I took in. Since I only made quota one solitary day, I could barely pay my share of the rent. I was lucky that I didn't have a driver license, or it could have been worse (drivers got less time). It was miserable, and I caution anyone in earshot not to work this sort of summer job. "Jobs for the environment" = being driven to a different town hours away so you can beg for money that you get to keep a chunk of. At least I got to sleep in my own bed each night so it wasn't that much like those poor folks selling magazines door to door.

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Yeah meth users and coke snorters waste a way too much money. Supply and demand, though.

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@nstonep: Oh, not even close. For example, according to Charity Navigator:

Goodwill Industries of San Francisco and Marin County
Deborah Alvarez-Rodriguez President, CEO $324,685

Make-A-Wish Foundation of America
David A. Williams President, CEO $354,487

American Red Cross
Gail J. McGovern President, $565,000

Just take some time and browse [www.charitynavigator.org] for some eye opening CEO salaries.

Of course, whether or not a CEO deserves such a salary is a complicated situation but it does give one thought.

I mean, compare the responsibilities of the Red Cross CEO (a multi-billion dollar organization) to the Goodwill CEO of San Fran (a couple of million dollar organization).

YMMV

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I like the British term for such things--a blend of "charity" and "mugger" gets you "chugger."

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One way to make sure the funds you donate go only to the programs you want to support is to make a restricted donation. The most common way to do this is to specify the program or how you would like the funds used on the check. Second best would be to make the stipulation on any other accompanying paperwork. Charities would much prefer you make an unrestricted donation. That money will go into the general fund and can be used however the charity wishes, but they are obliged to honor any restrictions made by the donor. The charity can charge an administrative or processing charge to a restricted donation, but it must represent actual costs, not an inflated charge or even a budgeted estimate of the associated costs.
Charities don't love restricted donations. In some ways it's like trying to do your mission with one hand tied behind your back. If circumstances change or your programs evolve you can be stuck with a donation you can't use and can't get rid of. But, if a charity (or church) has programs you like and programs you don't like, a restricted donation is a good way to make sure the intentions of your donation are honored. A word of caution though: any donation, restricted or not is only going to be utilized as honestly and ethically as the organization your supporting. Always do your homework.

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I worked for a charity donations groups in Los Angeles that represented Greenpeace, the DNC, St. Josephs Indian School and other charity groups. I can honestly say that the telemarketers collected only 10% - 20% of the donation for operating costs and this information was shared with the donor when we were asked. The amount of donation earned by the telemarketer company depended on the charity organization and the general amount of donations; i.e. $5.00 average donation compared to $5,000 donation, the cut would be smaller on the larger amount). The upsale spiffs we received were a small amount per donation like in the $.50 to $10.00 range, not a job to get rich at but for a retired individual the supplemental income and the inexpensive health insurance offered was good.

I would'nt degrade donating through one of these services, after all for an organization to hire their own collection services is very expensive and a waste of money for their charity.

Be careful and ask questions of the caller and if concerned and have the internet handy, get the company's name and location and check the company out on the Better Business Bureau's website www.BBB.org. If the company isnt listed I'd hold off donating or ask for a mail-in donation form.

As a note, the organization I worked with never represented police, sheriff, & fire department "charities".

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@Julius Seizure. (the CANUCK one): United Way is hardly up front about their ratios and has been caught fudging their numbers on more than one occasion including, but not limited to, double counting revenue, not counting expenditures, expending non-cash goods to appear better than they are, and counting money their competitors ended up receiving.

They are still probably one of the least bad alternatives, but why not contribute directly if you know which charities you want to sent to?

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@FDCPAGuy: "bullet proof vests for police"

Silly me, I thought that was why I paid taxes.

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@dragonfire81: Can we extend that to people who knock on your door or stop you on the street.

I have simply quit donating to anything other than direct to the organization itself. Either by writing a check and sending it to their office or online on that charities website.

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@discounteggroll: We had a group doing this kind of thing in front of WallyWorld about eight years ago. They had some sort of pseudo keep kids off of drugs program that they used as a front for some rather wacky fringe fundamentalist church they ran. Upon further research is was some sort of end times kill the non christians cult. It was rather surreal and they thankfully have disappeared.

They were soliciting donations out front. When I said I wasn't interested the guy started banging on the front window and screaming/swearing through the glass at me.

I called the store manager after I got home and looked these guys up. He had no clue what they were about, just let them set up shop out front.