Graft Is Graft
‘Graft’ has many definitions, and I guess is most commonly used in horticulture and surgical circles.
But here’s the definition that applies in fundraising circles: ‘Money gained by unscrupulous means.’ Unfortunately that definition doesn’t quite reach to outright fraud.
So, on the one hand, I was pleased to see Suzanne Perry’s update in the Chronicle of Philanthropy on reactions in our sector to the publication by the Tampa Bay Times and the Center for Investigative Reporting of their work on America’s “50 Worst Charities”.
However, I was not at all pleased to see so many in the charity and fundraising biz actually disparage the work, some arguing that it simply reinforced an inappropriate obsession with overhead costs.
Clearly these apologists didn’t actually examine the amazing depth of research done.
This was not some amateurish, superficial look at cost of fundraising as against proceeds going to program.
As Suzanne noted:
“The project did not focus on overhead per se. It aimed to select the 50 charities that sent the biggest percentage of the money they raised to for-profit solicitors over 10 years. It included only groups that paid those companies the bulk of the money raised in at least 75 percent of all campaigns over the years …
“The charities on the ’50 worst’ list sent almost $1-billion to commercial solicitors and spent an average of less than 4 cents on direct cash aid to the needy over a decade, the investigation found.”
These are not bad apples … these are rotten apples. Some of these folks belong in jail.
Here’s the ‘headquarters’ of #1 on the list, Kids Wish Network, which last year raised $18.6 million and spent just $240,000 granting wishes.
But what do the ‘leaders’ of our sector say?
“[We’re] seeing what can be learned.”
“The 50 organizations in the list are such extreme cases that they are not representative of what a typical charity looks like or how it operates.”
It’s just the work of two reporters … headline grabbing … “suspect to me from the start”. [Such a dumb, disappointing comment from an otherwise hero, Dan Pallotta.]
The president of Independent Sector said she didn’t have enough information to make a judgment, adding: ““You’re making an assumption these are bad operators, and I don’t make that assumption at all.”
HUH?!
To her I say: I know you must be really busy as a leader of our sector, bolstering public confidence in nonprofits and all that, but please, take a day off and read the full research compiled by the reporting team!
None of these leaders had word one to say about redressing this situation with tough, monitored and enforced standards of practice, coupled with public shaming of charities and fundraising firms who operate in this manner.
Shame on you!
Meantime, legitimate charities, whose names are often mongrelized by the imposters — e.g., Make A Wish, the good guys, becomes Kids Wish — must spend time, energy, money defending their well-earned reputations to confused donors.
I note that Perry’s article reports that the investigative team, having asked the public to share tips on ‘suspicious charities’, has received about 275 suggestions, “including requests to examine some ‘well-respected’ organizations”.
Personally, I hope the team digs into every one of these. I hope some foundation or philanthropist comes along and gives them a million bucks or so to keep up their probing.
Clearly, no one among our sector’s ‘trade groups’ is inclined to investigate and ostracize these sleazebags.
Tom
P.S. Here and here is what kick-butt Roger had to say when the report first came out!
Graft is indeed graft and the worst kind of graft involves the abuse of public and charity money. The only way we will maintain public confidence is if we clean up our own Augean stable. Why do so many regulatory bodies- in the UK as well as the US- avoid challenging unethical practices. (See the recent scandal in the UK http://www.independent.co.uk/money/tax/tax-scandal-threatens-charity-donations-8608334.html)
Thanks Tom and Roger. I was wavering about The Wall, but as long as you speak as plainly and openly as this I’ll pay…
Graft is indeed graft, and lawbreaking is also lawbreaking. Every state charitable solicitation regulator office is in violation of laws (and let’s not even discuss the IRS). California, for example, is now demanding that for charities to register, they must file their list of donors from their 990s even though Internal Revenue Code section 6104 expressly states that such part of their 990s need not be disclosed. California has the worst credit rating of any state, and if subject to the legal and ethical requirements faced by the typical charity would be shut down. New Jersey requires charities to waive their Fourth Amendment rights as a condition of registering. States keep the home addresses of their employees confidential, yet publish the home addresses of principals of charities.
Why are charities expected to waive their constitutional and legal rights just to operate? And, why does the charitable sector tolerate that?
Donors give in good faith and it is unfortunate that charities such as the ones named above do such an unethical job to fleece the public and other nonprofits. It is unfortunate the response of the “so called” leaders of nonprofit world who have not come out and denounced these crooks. What is needed is a few (many) prosecutions and convictions of these “fake” nonprofits and their principals.
The “Circling the Wagons” mentality lives on. Until the fundraising community takes some serious steps at self-regulation, we are paving the way for ever more onerous regulation. And, we’ll be able to look in the mirror to see who is to blame.
Though they may make up a small number of non-profits, these types of organizations should be called out. And by keeping silent, legitimate fundraisers and non-profits are complicit in the duping (and fleecing) of the public.
Wake up people! Our professions are at stake here and if we don’t act soon, donors and prospective donors are going to really begin questioning everything about our fundraising — more so than they are now. I realize we live in a country where one is innocent until proven guilty, but it’s pretty obvious there has been a significant lapse in ethical business practices. Why aren’t our trade organizations (DMAW, DMA, AFP, NCDC, etc.) taking a stand? How many chickens have to be slaughtered in the hen house before we realize there really could be a sly fox or even a wicked wolf lurking about? Are we all really that afraid of the big, bad wolf?