(Rochester, N.Y.) – When the membership of the Kiwanis Club of Rochester dropped, the club turned to telemarketers to raise money to support its community service projects at organizations such as Open Door Mission, Easter Seals, and Golisano Children’s Hospital.
“It's a win-win for us to the extent there's no investment of time and money or personnel for us,” said Dennis Delconte, president of the club. “It's hard to get people to spend their time.”
Last year, the Rochester firm Marketing Squad raised $41,600 for the group and turned over $10,400. Delconte said the company told the club it would get 25 percent of the money collected.
“The marketing squad is a for-profit organization. They have to pay for heat, light, power, salaries, insurance,” Delconte said.
The Monroe County Volunteer Firemen’s Association also used Marketing Squad last year and received $13,409 of the $57,266 raised. Officials with the group said they were satisfied with the fundraising campaign.
Marketing Squad did not return a call for comment.
The state attorney general found such arrangements between telemarketers and non-profits are common. In a report out this week, the state found that only 39.5 cents of every dollar raised statewide goes to charities.
That is far below the Better Business Bureau’s guideline of no more than 35 percent of funds raised should go to fundraising overhead.
“(Telemarketers) should answer questions truthfully and honestly. They should be prepared to mail out to the giver a financial report, a description of the services, the programs, how much goes to overhead,” said BBB’s Pat Coakley.
Small charities with no staff or fundraising expertise say telemarketers provide a vital service. Delconte said all of the money that goes to the Kiwanis Club is spent on service projects. He also said the club accepts direct donations, and is actively seeking new members.
“We put a little bit back into the community,” he said. “Each one of us feels a need to do that.”
