ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Wednesday, April 23, 1997 TAG: 9704230022
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
COLUMN: MARKETPLACE
SOURCE: MEGAN SCHNABEL
I've been getting quite a few calls lately about telephone solicitors who ask us to help local police and fire associations send kids to camp or pay for anti-drug programs.
The questions are timely. The Federal Trade Commission, as part of its "Operation False Alarm," recently issued a reminder to charity-minded citizens: Giving to charities is admirable, but be a smart consumer and make sure you know who's getting your money.
Callers selling circus tickets or other merchandise usually aren't the firefighters or police officers themselves. More often, they're professional solicitors, hired by the association that's raising money.
It's a matter of necessity, said Bruce Roy, head of the Roanoke County Professional Fire Fighters and Paramedics. Although the union sells tickets to concerts several times a year, a promoter does all the work.
In exchange for making sales calls, solicitors are paid a sizable portion of the money raised. On average, 70 percent to 90 percent of every contribution goes to the professional solicitor, according to the FTC.
The firefighters' group, which uses concert proceeds to fund fire-safety programs, gets "enough [of the profits] to make it worth our while," Roy said.
The Virginia Solicitation of Contributions Law requires that professional solicitors tell you just what percentage of your donation will go to the organization you're trying to help. It also requires that they identify themselves as paid solicitors. They must tell you their full name, the name of the company they're working for and the name of the organization for which they're collecting donations.
Solicitors who don't abide by the law can get in big trouble. A recent example: Smoky Mountain Secrets Inc., a professional solicitor that once raised money for the Virginia State Police Association, was hit with more than $10 million in civil penalties this month. A Richmond civil court judge found that the solicitors misled donors by representing themselves as members of the police association and telling them contributions were tax deductible.
Solicitors also implied that 75 percent of the proceeds from the purchase of the company's jams and sauces would go toward charitable projects. In truth, the association received 12.5 percent of the price of a typical $34.95 package.
It's such stories that can give other fund-raising efforts a black eye, Roy said. "Everything the attorney general has asked for, we've complied with," he said. "If we have a complaint, we'll fix it."
Here are some tips for smart giving from the Federal Trade Commission and the state Office of Consumer Affairs:
Ask fund-raisers for identification.
Ask how your contribution will be used. Ask what percentage will go to the police or fire program. Ask if your contribution will be used locally. Get written information.
Call the organization or your local police or fire department to verify a fund-raiser's claim. If it can't be verified, report the solicitation to law enforcement officials.
Call the Office of Consumer Affairs to verify the solicitor's information. The office also can tell you if the group is properly registered to solicit and how it uses its contributions.
Ask if your contribution is tax-deductible, and always pay with a check to the official name of the group or charity.
Don't feel intimidated about declining to give. Legitimate charities won't pressure you into making a donation.
The local Better Business Bureau can tell you whether any complaints have been filed against a particular group.
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