DMANF Statement: Response to NY Charity Report

WASHINGTON, December 22, 2005 – The Direct Marketing Association Nonprofit Federation (DMANF) today is reviewing a just-released report from New York Attorney General Elliot Spitzer’s office that attempts to measure nonprofit efficiency based on a sample of telemarketing campaigns in the state of New York. We are pleased to note that the report acknowledges there are legitimate instances where the financial efficiency of a specific campaign does not tell the full story.

According to the report, in 2004, nonprofit organizations used telephone solicitations to collect $63.5 million for worthy causes in New York. Telephone remains a successful and efficient method for charities to raise funds and build awareness.

We agree with NY Attorney General Eliot Spitzer that it is incumbent upon nonprofit organizations to solicit bids in advance of contracting out with a professional fundraiser. However, the decision by a nonprofit to work with a professional fundraiser must be based on the specific goals and objectives, which may range from advocating, to raising funds, to building awareness, or educating the general public on important matters.

In many instances solicitations are made for purposes beyond just fundraising, as Attorney General Spitzer points out in his report's CAVEATS, listed below. There are reasons why some campaigns may be more financially successful than others.

"CAVEATS: In reviewing the data in this report, the reader should keep in mind several factors that may affect fundraising costs. Identifying new donors may be more time consuming and thus more expensive than contacting prior contributors. An organization may conduct a telemarketing campaign simply to test-market new fundraising ideas without any certainty that its campaign will prove efficient and productive. An organization may also achieve goals other than raising funds - such as public education or recruitment of volunteers - at the same time that it is conducting a fundraising campaign. These and perhaps other benefits will not necessarily be reflected in the revenue received by the charity.

A newly created charity or one advocating new programs or new ideas may experience greater fundraising costs without any certainty that its campaign will prove cost effective. The reader should also keep in mind that amounts raised in a particular telemarketing campaign may represent only a small part of a charity’s fundraising activity and, therefore, may not provide donors with a complete picture of a charity’s overall fundraising. Donors are urged to review the entire annual financial report of a charity when considering making a contribution and should not rely solely on this report when making such decisions."

The DMANF strongly believes that donating public should always blend caution with its generosity. The following are some guidelines to help consumers choose wisely when making decisions about charitable donations.

• Ask how your donation will be used. The organization should provide detailed information up front and a contact reference for after the campaign. Find out what the charity intends to do should any excess contributions remain after they have fully funded the disaster relief activities mentioned.

• Do not give cash. Legitimate organizations will take a check and often will take credit cards. Do not give cash, especially if the organization is offering to pick it up through a courier.

• Know who you are talking to. If you are contacted by telephone, ask about the caller's relationship to the organization. A legitimate organization may use the services of professional fundraisers, volunteers, and staff, depending on the needs of that particular organization, and will assure that callers readily explain who they are and why they are calling. Ask for the callback information and an address if there is cause for concern.

• Look for a privacy policy. The organization should have a privacy policy on the use of personal information. Personal information such as your social security number, your mother's maiden name, and PIN access should not be asked for.

• Watch out for online "spoofing." If you receive an e-mail request, be cautious when clicking on a link from an e-mail that appears to be sent from a legitimate source. The e-mail may have the logo and even the correct "sent from" source. Furthermore, the site link may even look like the real organization. To avoid this, go to the organization's web site directly. If you are unsure of the Web address, go to your favorite search engine and enter the organization's name. When donating online, make sure that you enter your personal information only on a site that is secured.

• Be cautious of high-pressure tactics. Legitimate organizations are professional and courteous when asking for your support. Be cautious of high-pressure tactics, but do not be deterred from aiding this vital relief and reconstruction effort. Should a solicitation from an organization you do not know give you pause, please send your donation to an organization you do know and trust.

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Since 1982, the DMA Nonprofit Federation (DMANF) and its predecessor organizations have been aggressive and effective advocates for nonprofits in postal, regulatory, legislative, and accountability issues. The Federation is the premier agent for improving public awareness and receptivity to direct/interactive marketing-driven philanthropy, and is the ‘top brand’ among all associations and advocacy groups working on behalf of nonprofits in this area. With more than 300 members, The DMANF is one of the largest member segments of the Direct Marketing Association and is the leading association for member organizations that use direct and interactive marketing media such as mail, telephone, and the Internet to communicate with donors, members, customers, and the public. The DMANF's full-time staff, located in Washington, DC, is assisted by legal counsel for regulatory and postal matters, and supplemented by the resources and professional staff of the DMA.