Charities which begin at home: the easy work if you can get it (or stoop to it) of setting up a charity to
provide remuneration for yourself in a way which circumvents
the usual prohibition against self-benefiting from charitable fundraising. May
take two forms:
1. A registered charity is set up quite
legally for the purpose of providing income for an allied
telemarketing business. The two entities (charity and telemarketing
firm) share personnel or are closely linked by personnel. Mr Smith
starts up a charity whilst himself or associates are in charge of
the telemarketing business. The charity awards contracts to the
telemarketing business which by law can keep up to 70% or more of the
fundraising income as commission.
registered charity is set up by an
individual who soon pops up as the boss of the
charity drawing a nice full time salary from mercenary telemarketing -
and advancing his/her career beyond what their resume would normally
In both cases the law and its guileless
technical provisions are easily tip toed through.
They are able to exploit public
generosity and gullibility and make money by aggressive telemarketing
which aims at and succeeds in acquiring money from people in a few
minutes of beguiling spiel.
How can you avoid these self serving
“charities”? They bear common hall marks:
charities are recently
* the fundraising is almost exclusively through telemarketing.
charities website has little if
anything to say about who the people behind it are. The people behind
it have no meaningful professional or personal background relating to
the charitable cause. A fundamental objective of setting up these
charities is to provide personal benefits in the form or paid employment,
career advancement and/or commercial fundraising
contracts. For example an individual without the skills or resume to
gain employment in a respected mainstream charity can find themselves
the boss of a charity which they have instituted! The
trusting funding fodder on telemarketing call lists are not equipped to
see this detail behind sentimental marketing spiels.
* the charity doesn't publish information about its finances and fundraising.
* the charity has a name that makes it sound like a respected mainstream charity (which does NOT do all the above). People contacted may mistake this scheming charity for the respected one – the charity and its fundraising firm will have bought lists which contain contact information of people who have given to respected charities.
* these "charities"
raise money and pass it on to functional bodies who do actual
charitable work such as research. You'd be better to donate directly to
these real charitable groups than pay wages for someone to shuffle
money and organise raffles.
You can avoid these charity free
loaders by never giving over the phone. The schemes work by
telemarketing. Avoid telemarketing and you won't get caught out.
Take a bit of time to think about your giving - how much you want to or can afford to
give, which charities you want to benefit and how you want to give. Do you want to give by
entering a raffle whereby only 30% or 40 % goes to the charity? Or would you prefer to
give a donation where it all goes to charity apart from a small administrative fee? Select
well known charities who are open about their processes and who have a track record.