Five-Minute Interview: When Telefundraising, Getting the OK is Key

FS: Many organizations have been reeling from the effects of state do-not-call lists, which allow people to block calls from paid solicitors, including those contracted by charities. How can nonprofits deal with this?
JH: There are some very legitimate companies that have been able to help nonprofits raise millions of dollars every year by what is known as “sponsored” marketing: selling a magazine, for example, where a percentage of the proceeds goes to the nonprofit. It sounds like a scam to the average person, but it isn’t. For the companies that take a percentage of the amount it collects [for a charity], then it depends on the percentage and how much money it is. There are charities that need funds so badly that they’ll sign up with a company that takes 90 percent of the money collected. That’s just wrong. I think a better way to look at this is to ask, “What is this group providing to the charity?” Companies should be able to make a reasonable profit, not just line their pockets while purporting to be raising money for charity.