Dialing For Dollars: Advice On Telephone Appeals For Charities

Arlington, VA, May 20, 2003 -- The BBB Wise Giving Alliance (the Alliance) applauds the announcements made today by the Federal Trade Commission (FTC) in regards to concerns about questionable telephone solicitation practices. "For many years, Better Business Bureaus across the country have received numerous inquiries about various telephone solicitors seeking to take advantage of American generosity and public concern about a variety of charitable and community needs," states Art Taylor, president and chief executive officer of the BBB Wise Giving Alliance.

"Not all telephone fund raising appeals should be considered suspect, because many legitimate groups do use telemarketing to attract donors," Taylor said, "We strongly recommend, however, that you carefully evaluate all phone appeals, before making a contribution decision."

The BBB Wise Giving Alliance offers the following tips to help the public avoid unscrupulous telephone solicitors:

1. DO NOT succumb to pressure to make an immediate gift. A legitimate charity that wants your donation will welcome it just as much tomorrow or next week. Report harassing calls to your state's attorney general's office and to the Better Business Bureau in your area.

2. DO NOT give your credit card number, bank account number, or other personal financial information to unknown solicitors. If you want to contribute, mail a check to the organization's address after checking out the charity.

3. DO NOT hesitate to seek out additional facts. If you receive a telephone appeal from an unfamiliar charity, ask the solicitor to mail you information on the charity's programs, finances, and/or a copy of their latest financial statements.

4. ASK HOW MUCH THE CHARITY SPENT ON FUND RAISING IN THE PAST YEAR as a portion of total contributions received. The Alliance recognizes that the cost of an individual fund raising campaign using the telephone may exceed donor expectations for the use of funds. On an annual basis, however, the voluntary Alliance charity standards recommend that total fund raising costs should not exceed 35% of total related contributions.

5. WATCH OUT FOR NAME SIMILARITY. In view of the volume of charities (more than 850,000 organizations have received charitable tax exempt status from the IRS), there are many organizations raising money for the same cause. Unfortunately, some names are used as to confuse potential donors and sound similar to well-known organizations.

6. IF A POLICE OR FIREFIGHTER ORGANIZATION is using the telephone to solicit funds, ask what type of organization is soliciting (e.g., charity, fraternal group or union), if any local police officers or firefighters are involved, and what specific program(s) will the donation support? For additional advice on police and firefighter organizations, go to www.give.org/tips/policefire.asp

7. CHECK OUT THE CHARITY with the BBB Wise Giving Alliance (www.give.org) to find out if a national charity meets the 20 voluntary Alliance charity standards, with the local Better Business Bureau (www.bbb.org) if the inquiry is about a local charity, and with your state's charity registration office (usually a division of the state attorney general's office).