When you think “charitable organization”, chances are that you think of this wonderful place of high ideals, caring individuals and wonderful charitable work. For the most part, this wouldn't be an incorrect idea – as general impressions go. These places need money to run though. And American charity at fund raisers and other places that charities usually go to for funds, has been dropping at a catastrophic 4% rate in the years since the recession started. When one out of ten charities in the country are at risk of shutting down for want of funds, it's time to compromise on a few those principles. And that's what they're doing.
It isn't much of a secret anymore, but since regular fundraisers don't raise as much money anymore, the charities are going to the telemarketing companies to try to tap a few additional sources of funds. The problem with that of course is that telemarketers charge unconscionably high fees for their services – 60%, usually. How do the charities disclose this in their balance sheets without looking like irresponsible money wasters? They lie by calling them “educational expenses” or something like that.
It isn't much of a secret anymore, but since regular fundraisers don't raise as much money anymore, the charities are going to the telemarketing companies to try to tap a few additional sources of funds. The problem with that of course is that telemarketers charge unconscionably high fees for their services – 60%, usually. How do the charities disclose this in their balance sheets without looking like irresponsible money wasters? They lie by calling them “educational expenses” or something like that.