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Red Light: They Use Paid Telemarketers

stoplight_webSo, without that telephone call from that pleasant young man, you never would have known about the great work his charity is doing. He did you a favor, and you’d like to make a donation. Don’t do it!

First, do you have enough information about the charity? Do you have their latest IRS Form 990? I bet they didn’t send it to you.

Second, and the capper for me. Paid telemarketing is a horribly expensive way to raise money. Our recent sampling of reports filed with the CA Registry of Charitable Trusts showed that the telemarketer paid less than 15% of what was raised to the sponsoring charities — so at least 85 cents of every dollar donated went to fundraising costs! Not much support for that great work the young man told you about.

More information on our Red Light warning system.

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