New York Nonprofit Press
Februar y 2006 . Volume 5 . Issue 2 . www.nynp.biz serving people who serve people
JOBS JOBS JOBS
Dialing for $’s
Pennies for Charity
Start on Page 21
by Fred Scaglione
The $1.2 Billion Question
Pennies for Charity: Every year for the Ten Years of Telemarketing in New York State
past eleven years the Attorney General’s
POINT OF VIEW Office has rung in the holiday season with
publication of this major report, which de- Year
tails the size and scope of fundraising by
charities using professional telemarketers. 2004 $170.6 million $63.5 million 37.2% $107.1 million
The Invisible And every year, the numbers are stagger-
2003 $187.4 " $63.2 " 33.7% $124.2 "
ing. During 2004, as outlined in the most
Thirty Two Percent recent edition of Pennies for Charity released 2002 $184.3 " $57.1 " 31.0% $127.1 "
in December, telemarketers raised $171 2001 $184.8 " $59.0 " 31.9% $125.8 "
million on campaigns registered in New
Page 5 York State. Charities only got to keep $63 2000 $188.4 " $59.3 " 31.5% $129.0 "
million, or $0.37 on the dollar. The profes- 1999 $194.1 " $55.3 " 28.5% $138.8 "
sional fundraisers kept $107 million, or
1998 $178.2 " $52.0 " 29.2% $126.1 "
63% of the total amount collected, in the
form of fundraising fees or other telemar- 1997 $145.2 " $35.9 " 24.7% $109.4 "
keting expenses. $163.6 " $60.0 "
“We think that they should change the 1996 36.7% $103.5 "
NEWS name of that report,” says Senny Boone,
Executive Director of the Direct Marketing
1995 $160.5 " $61.1 " 38.1% $ 99.3 "
Association Nonprofit Federation (DMA- Total $1.8 billion $566.4 million 32.2% $1.2 billion
NF) which represents professional
Governor’s Budget fundraisers involved in telemarketing and
direct mail. “It is a total misnomer. You are rectly to a charitable organization rather other forms of fundraising?
not talking about pennies. You are talking than through a professional telemarketing • Which charities are raising this $170 mil-
Page 6 about millions of dollars being raised to campaign and to review the annual finan- lion over the phone each year?
support organizations.” cial report of a charity before making a con- • Who are the telemarketers who do it on
Boone is certainly right about the tribution," he said while releasing the latest their behalf?
amounts being raised. It is a lot of money report. Pennies for Charity, itself, is de- • Is $0.37 on the dollar as low as it sounds?
and, over time, it really adds up. During signed as a public education document “to • What is the appropriate role of telemar-
the past ten years telemarketing cam- show New Yorkers how much of the mon- keting in a charity’s fundraising arsenal?
paigns registered in New York State have ey they contribute in response to telemar- • What is the right way to do it?
raised a total of $1.8 billion. keter solicitations actually supports chari- • What is the wrong way?
NEWS The Attorney General’s point, of table programs.” It is intended to shock • How does the AG’s office regulate and
course, is just how few pennies out of each New York’s generous and giving public monitor telemarketing fundraising?
dollar raised go to support programs at the into wary skepticism, thereby depriving Should it do more? Can it do more?
charities and how many are retained by less scrupulous telemarketers of their easi- Pennies for Charity provides a wealth
Mergers outside professional fundraisers. Here est prey. of information to help answer these ques-
again, the numbers really add up. During Despite these repeated public warn- tions – and raise others. The report’s 146
the same ten-year period, professional tele- ings by the AG’s office, telemarketing cam- pages of tables and analyses are the defini-
Page 7 marketers have retained $1.2 billion of the paigns are still an enormous source of rev- tive word on who is doing what with
total amount raised. That is billion with a enue – and a big business – in New York whom. It provides the basics on each of
“B”. And that is a lot of fundraising fees State. the 555 telemarketing campaigns conduct-
and expenses. Questions about telemarketing as a ed in New York State by 440 different char-
Attorney General Eliot Spitzer’s posi- fundraising practice abound:
tion is clear. "Donors are urged to give di- How big is telemarketing compared to PENNIES FOR CHARITY continued on page 8
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February 6 - Women in Development (WID)- New York
will host “Taking the Lead – Moving from Development
Februar y 2006
Executive to CEO,” the third in a series of special events
planned in recognition of WID New York’s 25th Anniversary,
the Princeton Club, 12:00 pm – 2:30 pm. For information, go to
www.widny.org or call (212) 265-7650.
February 8 – 10 - NY Model for Batterer Programs:
Updating Roles, Strategies and Outcomes will feature train-
ing and demonstrations on batterer programs, Westchester
Marriot: 670 White Plains Road, Tarrytown, NY. For registration and program informa-
tion, visit www.nymbp.org.
ON THE COVER AGENCY OF THE February 9 - The Fiscal Policy Institute's Sixteenth
Annual Budget Briefing “Balancing New York State's 2006-
2007 Budget in an Economically Sensible Manner” will be
Dialing for Dollars MONTH sponsored by The Community Service Society's Public Policy
Department, 2:00 - 4:30 pm, 105 East 22nd Street (at Park Avenue South).
1 Clubhouse of Suffolk RSVP by February 6 via e-mail message to firstname.lastname@example.org.
February 10 - Habitat for Humanity in Nassau and
12 Suffolk County will benefit from Huntington Cabaret’s pres-
entation of "Seize the Day,” an original musical review
directed by award winning Lennie Watts with musical direc-
CALENDAR OF PROGRAM PROFILE tor Steven Ray Watkins, 7:30 pm at the Unitarian Universalist Fellowship
of Huntington, 109 Browns Road, Huntington NY. General Admission $20. For ticket
information please call 631-673-5577.
NONPROFIT EVENTS Bushwick Impact February 16 - Infant-Parent Study Center of the Jewish
3 15 Board of Family and Children's Services will host a book
signing and discussion with Suzi Tortora, EdD, APTR, CMA,
author of The Dancing Dialogue:Using the Communicative
Power of Movement with Young Children. 6:00 pm, For information
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POINT OF VIEW 16 February 26-28 - An Undoing Racism Workshop will
be hosted Fordham Univ. Graduate School of Social Service,
113 West 60th Street, by NASW-NYC Chapter, NASW NYS
Chapter-Westchester Division, Columbia University School of
Invisible Thirty Two Percent Social Work Fordham University, Graduate School of Social
PEOPLE Service, Hunter College School of Social Work and the
Antiracist Alliance. Cost is Cost is $250, which includes tuition and light break-
5 17 fast. For information, go to www.antiracistalliance.com.
March 2 - United Way of Long Island Celebrates its 41
Years of Changing Lives on Long Island at Celebrate What
Matters, UWLI’s own night club created just for this special
NEWS CLASSIFIEDS evening, 5:30 to 9 pm at Carlyle on the Green in Bethpage. Tickets are $350.
For more information, sponsorship opportunities or to register online, visit www.unit-
6 21 edwayli.org or contact Janie Figueroa, events manager, United Way of Long Island, at
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March 7 - The Early Childhood Group Therapy Program
of the Jewish Board of Family and Children's Services will
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4 New York Nonprofit Press www.nynp.biz February 2006
Letters New York Nonprofit Press agrees with and supports the sentiments
expressed by the Ad Hoc Child Welfare Group in the attached open letter to
Mayor Bloomberg and Council Speaker Quinn. The deaths of Nixzmary
Brown, Sierra Roberts and Dahquay Gillians were tragic. It also would be
tragic if a hasty and misguided response to these deaths were to derail the
substantial progress which the City’s Child Welfare System has made over
An open letter to Mayor Michael Bloomberg the past decade.
and City Council Speaker Christine Quinn We are grateful to all those who have signed this letter and to Andrew
White of the Child Welfare Watch and the New School’s Center for New York
Ad hoc NYC Child Welfare Group In child welfare policy, there is too often an City Affairs for the opportunity to publish it.
c/o Andrew White overly politicized, whipsaw effect that results
Child Welfare Watch from the intense public scrutiny that follows a
Center for New York City Affairs child’s death. This can force administrators into
The New School extreme shifts in direction based on simplistic Ralph Dumont, Executive Director, Nora McCarthy, Editor, Represent!*
or ill-informed analysis. Instead, changes in child Lower East Side Family Union Carolyn McLaughlin, Executive Director,
January 20, 2006 welfare policies and services must be based on Ilze Earner, Director, Immigrants and Child Citizens Advice Bureau
evidence and experience in the field. Welfare Project, Hunter College School of Robert J. McMahon, Executive Director,
Dear Mayor Bloomberg and There is much work to be done. Oversight Social Work SCO Family of Services
City Council Speaker Quinn: and support of investigations will have to be Laurel Eisner, Executive Director, Claude B. Meyers, Executive Director,
Ten years ago, New York City’s child pro- reinforced, as will education and skill develop- Sanctuary for Families Abbott House
tection system was in severe disarray. ment for caseworkers.At least as important will Aubrey Featherstone, Executive Director, Lawrence Murray, CASA Fellow,
Investigators were overwhelmed and demoral- be energizing more effective collaboration Edwin Gould Services for Children and National Center on Addiction & Substance
ized, carrying 30 or more cases at a time and between front-line child protection staff and Families Abuse at Columbia University*
frequently not finishing their investigations on workers at community organizations and insti- John J. Frein, Executive Director, Beth Navon, Executive Director,
schedule. Management and accountability sys- tutions that serve families and children (includ- Catholic Guardian Society Friends of the Island Academy
tems were weak. The need for a thoroughgoing ing public schools). The city must redouble Michael Garber, child welfare consultant* Sharwline Nicholson, President,
reconstruction and renewal of the agency was recent efforts to improve Family Court so that Sister Judith Garson, Executive Director, Child Welfare Organizing Project*
evident even before the very public review of it effectively addresses the needs of children and Little Sisters of the Assumption Family Steven Parker, Executive Director, Rosalie Hall
the death of Elisa Izquierdo. parents and eliminates long and routine case Health Service Jim Purcell, Executive Director,
delays. And community-based, preventive family Martin Guggenheim, Fiorello Council of Family and Child Caring Agencies
Today, in the wake of the deaths of
support and foster care services must be LaGuardia Professor of Clinical Law, New Brother Philip Rofrano, FSC,
Nixzmary Brown, Sierra Roberts and Dahquay
strengthened further, including lower caseloads. York University Law School* Executive Director/President,
Gillians, the city’s child protection system is
once again the focus of intense public criticism Finally, New York must intensify its efforts Robert H. Gutheil, Executive Director, Martin de Porres Group Homes
and internal scrutiny. The signers of this letter to develop a more meaningful and effective Episcopal Social Services Sharonne Salaam, Executive Director,
spend much of our lives engaged with this sys- strategy for reducing family violence, not only Tony Hannigan, Executive Director, People United for Children*
tem and with the Administration for Children’s violence against children but against women as Center for Urban Community Services Donna A. Santarsiero, Executive Director,
Services, either as practitioners, parents, advo- well. Even as major crime rates have fallen Roseanne Haggerty, President, Brooklyn Bureau of Community Service
cates, attorneys, analysts or otherwise. And we steeply, family homicides and assaults remain as Common Ground Natasha Santos, Reporter, Represent!
state emphatically that the problems illuminated common as they ever were. Susan Halpern, President,The Sirus Fund Andrew Scherer, Executive Director,
by these recent deaths are very different from Rev. Msgr. Robert M. Harris, President & CEO, Legal Services for New York City (LSNY)
the wholesale dysfunction of the early-to-mid With sincere commitment for a steadily St.Vincent's Services, Inc. Alan Siskind, Executive Vice President,
1990s. They demand a very different kind of improving system for safer children and Keith Hefner, Publisher/Executive Director, Jewish Board of Family and Children’s
response. stronger families, we are: Youth Communications Services
Dianne Heggie, Associate Executive Director, Herbert W. Stupp, CEO/
The city’s response to these deaths and the Richard Altman, CEO, Council of Family and Child Caring Agencies Little Flower Children & Family Services
crisis of public trust will have to build upon the Jewish Child Care Association Sue Jacobs, Executive Director, David Tobis, Executive Director,
reform efforts of the last several years. Any Michael Arsham, Executive Director, Center for Family Representation Child Welfare Fund*
other approach would threaten to scuttle what Child Welfare Organizing Project* Poul Jensen, President/CEO, Graham-Winham Richard Wexler, Executive Director,
is surely one of the most successful, influential Bill Baccaglini, Executive Director, Jeremy Kohomban, President and CEO, National Coalition for Child Protection
system reform projects in urban government— New York Foundling Children’s Village* Reform
and one that all concerned recognize as far from Lilliam Barrios-Paoli, CEO, Safe Space Jack Krauskopf, Distinguished Lecturer, Andrew White, Director, Center for New York
completed. Ellen Baxter, Executive Director, Baruch College School of Public Affairs* City Affairs at The New School*
We support the Administration for Broadway Housing Communities Madeleine Kurtz, attorney* Fred Wulczyn, Research Fellow,
Children’s Services attention in recent years to Rolando Bini, Executive Director, Susan Lob, Director, Chapin Hall Center for Children, University
implementing rigorous accountability systems Parents in Action Voices of Women Organizing Project of Chicago*
and performance reviews internally and with its Bernadette Blount, Parent Organizer, Sister Paulette LoMonaco, Executive Director, Michelle Yanche, Executive Director,
contractors; pursuing low investigative case- Child Welfare Organizing Project Good Shepherd Services Neighborhood Family Services Coalition
loads and adequate pay for frontline workers; Andy Breslau, Executive Director, Rev. Alfred Lo Pinto,Vicar, Jill Zuccardy, Director,
providing investigators easier access to clinical City Futures Inc.* Human Services, Diocese of Brooklyn Child Protection Project, Sanctuary for
expertise on mental health, domestic violence Eric Brettschneider, Executive Director, Agenda and Queens Families
and substance abuse issues; strengthening and for Children Tomorrow Gerald P. Mallon, Professor, Hunter College
expanding essential community-based family Linda Lausell Bryant, Executive Director, School of Social Work* Affiliations are for identification purposes only.
support services; steering the foster care sys- Inwood House Gerard McCaffery, President/CEO,
tem toward better and more permanent homes Folasade Campbell, Executive Director, Seamen's Society for Children and Families * indicates Member, Child Welfare Watch
for children; emphasizing greater respect for and Concerned Citizens for Family Preservation
responsiveness to parents, youth and foster par- Gordon Campbell, CEO, Safe Horizon
ents; and much more. Gladys Carrion, Senior Vice President,
And we all agree that Administration for United Way of New York City* Corrections
We would like to correct the following errors which we made in the January issue.
Children’s Services Commissioner John John Courtney, Co-Director,
Mattingly and his executive staff, along with Partnership for Family Supports and Justice* The Point of View “Beyond the Boon: Burden of Technology” was written Michelle
Deputy Mayor Linda Gibbs, are the best man- Alisa Del Tufo, Co-Executive Director, Yanche, Executive Director of the Neighborhood Family Service Coalition. We mis-
agement team we could hope for in learning Connect* spelled Michelle’s name.
valuable lessons from these recent, terrible Mario Drummonds, Executive Director/CEO A photograph of Dr. Richard Dina in our People Serving People section was incorrect-
events and using those lessons to further Northern Manhattan Perinatal ly identified at Tara Tate. We apologize to Dr. Dina and to Ms. Tate.
strengthen the reform effort. Partnership, Inc.
February 2006 New York Nonprofit Press www.nynp.biz 5
POINT OF VIEW
fined. The Vision and the Plan suggest im-
The Invisible Thirty Two Percent portant priorities, but with serious conse-
quences for children with special needs.
They call for "full integration" of the City's
In December, NYNP reported on a dren in Universal Pre-K; in fact, DOE ac- early childhood services while at the same
new initiative of the Administration for tually serves an additional 26,000 dis- time segregating out children with disabil-
Children's Services (ACS) titled An Inte- abled children in special ed Pre-K – an in- ities. They seek to "foster healthy devel-
grated Plan for Early Childhood Develop- visible 35%. DHMH reports that it has opment" of young children through pro-
ment in New York City. The ACS plan is 4,500 site-based providers; in fact, it has grams that are "developmentally focused",
a key component of Mayor Bloomberg's an additional 150 providers that it con- while excluding children with develop-
new Vision for Early Childhood Educa- tracts and monitors to serve infants and mental delays. They will simplify eligibil-
tion which he announced during the re- toddlers with disabilities – an invisible ity in order to "ensure accessibility," while
cent mayoral campaign. Quite under- 4%. And in testimony supporting the im- creating a plan which is inaccessible to dis-
standably, the article reporting this portance of the early childhood educa- abled children. At the same time that ACS
initiative was positive and upbeat, and tion initiative, a representative of the UFT is vigorously pursuing a lawsuit on access
for most of the early child- to special services for their foster children
hood community this news with developmental disabilities, they put
was as good as it gets. The forth a plan for their own day care servic-
dreams and advocacy efforts es which doesn't include access for
of more than a decade preschoolers with disabilities.
seemed to be coming to 64,000 young children Twisting the knife in the wound, the
Margery E. Ames, Esq.
fruition. problems are not limited to government Frieden and Commissioner Klein were
But the Mayor's Vision sector representatives. Every major early approached shortly after the release of the
and the ACS Plan were a ma-
jor disappointment and de-
with disabilities were not childhood advocacy group and profes-
sional group in NYC has weighed in, all
report, and this serious issue was called to
their attention. Both are honorable men
feat for another segment of with supportive and positive reflections who have proven over many years how
the early childhood commu- on the initiative. The Internet is replete deeply they care about the children with
nity – the invisible 32%. included in this new with websites of hoorahs and jubilation. disabilities in their care. The commis-
The initiative plans to en- Leading professionals and major "names" sioners responded immediately, recog-
hance the quality of services in the early childhood field have been nizing the pedagogical and political is-
to some "135,000 young chil-
dren who attend publicly
Early Childhood Development quoted. Some have, in the past, been lead-
ing voices in vigorous advocacy for the in-
sues raised, and both gave assurances
that the void would be resolved as plan-
supported early care and ed- tegration of special needs children with ning proceeded. I have no doubt that
ucation." In fact, there are al- their non-disabled peers. Yet not one of they will be true to their word. But I
most 199,000 young children planning process them, even those considered leaders in the would hope they, as well as Commission-
being served. The invisible field of early childhood disability services, er Mattingly, will recognize that there is a
32% are the 64,000 young appeared to notice that 32% of the children more important question to be asked:
children with disabilities who are missing from this plan. How did these how could any senior member of their re-
are served in publicly funded early inter- (United Federation of Teachers) states children just disappear from the collective spective administrations provide this
vention and preschool special education, that "There are no three year olds in pub- vision? data, respond to these questions, or par-
and who were not included in this new lic pre-school at all"; in fact, 13,000 three- Unfortunately, the answer is much too ticipate in this plan development, with-
planning process. year olds with disabilities receive pub- simple. Almost three decades after feder- out ever noticing the invisible 32%?
Were these children "forgotten" only licly funded preschool services, and 1,000 al and state legislation first posed the now Invisible numbers are important.
in the total count? It doesn't appear so. attend public school programs taught by well-established principles of integration They tell us where people's priorities are;
The initiative reports that the NYC De- UFT teachers. How did these children of children with disabilities alongside how they are thinking; what they think
partment of Health and Mental Hygiene just disappear from the collective vision? their typically developing peers, both the universe is. Invisible numbers tell us
licenses and monitors day care centers The problem isn't just with the num- public and private early childhood stake- so much more than mere numerical val-
serving 126,000 publicly-funded chil- bers. The Vision and the Plan both make holders still think, speak, count, and plan, ue; they tell us about human value.
dren; in fact, DHMH actually serves an free use of -- some might even say they in terms of "children" and "those children."
additional 37,500 children in its own Ear- "hijack" -- core values from the disability It's not that anyone consciously decided to Margery E. Ames, Esq. is Executive Di-
ly Intervention programs – an invisible community, turning these values to a leave out the special needs early child- rector, InterAgency Council of Mental Retar-
23%. The NYC Department of Educa- new use while inadvertently shutting out hood community, it's merely that it never dation & Developmental Disabilities Agen-
tion is reported as serving 49,000 chil- those for whom they were originally de- hit the radar screen. Both Commissioner cies, Inc.
visit our webstie at www.nynp.biz
6 New York Nonprofit Press www.nynp.biz February 2006
Governor’s Budget Proposal Includes there is an explicit mandate that counties by more than one-third, from $20.2 million to
have to pass COLAs on to all providers for $27.2 million. “The After-School Corporation
COLAs and New Initiatives whom MSARs are set, including Foster is delighted,” said Lucy Friedman, President
Boarding Homes and foster parents. That is of TASC. “This additional money marks the
Advocates and providers are finding Abuse Providers of New York State (ASAP). really good news.” first major increase in four years and should
much to cheer about – as well as several “The fact that this goes out over a couple of Advocates were still combing through translate into approximately 11,000 more af-
things to battle against -- in Governor Pataki’s years, even though we are talking about a budget detail to determine which programs ter-school slots statewide.”
final budget proposal for the year beginning new administration, sends a message that would be affected by the COLA proposals The Governor also ended a tradition of
April 1st. this is not a one-shot deal. This is something and how the proposals would be implement- budget battles over inclusion of funding for a
High on the list of positives are the Gov- that is going to be a challenge that will be ed. “We are still trying to figure out the broad array of HIV/AIDS services. “For the
ernor’s proposals for Cost of Living Adjust- with us for a long time.” specifics, but the Governor certainly should first time in years, the HIV/AIDS budget was
ments (COLAs) for providers in a wide range “The Coalition has long argued that the be commended for adding this money,” said not cut!” said the New York AIDS Coalition.
of programs in the areas of health, mental funding for many OMH-funded programs Allison Sesso of the Human Services Council. “All the programs that have been routinely re-
health, substance abuse, HIV/AIDS and oth- and services is stagnant while provider’s ex- The Coalition of Voluntary Mental moved in past Pataki Executive Budgets are
er services. Advocates are also applauding penses steadily increase each year,” said Health Agencies also commended the Gover- now included in the baseline AIDS Institute
new initiatives in children’s mental health, ex- Michael Polenberg of the Coalition of Volun- nor’s $62 million Children’s Mental Health Budget at their 2005-2006 funding levels, in-
pansion of the Advantage After-School Pro- tary Mental Health Agencies. “We are de- Initiative, which will double both the number cluding Communities of Color programs,
gram, increased funding for Expanded In- lighted that Commissioner Carpinello and of current admissions to clinic treatment and Treatment Adherence, Permanency Planning,
Home Services for the Elderly (EISEP) and the the Governor took steps to address this sys- the number of Home and Community-Based Community Service Programs, Multi-Service
“baselining” of many programs, particularly temic problem in this year’s budget.” Polen- Waiver (HCBW) slots for children and ado- Agencies and Community Development…
in the HIV/AIDS sector. berg estimates that this year’s funding just lescents. We are excited that we can now spend our
Downsides include the Governor’s pro- for OMH COLAs will be $30.9 million with “We are encouraged that the State is pay- time this budget on securing increases to meet
posed $1.3 billion in cuts to Medicaid and the total three-year package providing as ing attention to the needs of those kids and the pace of New York’s growing AIDS epi-
Family Health Plus, expansion of the Flexible much as $90 million in new funding. “With looking creatively at ways to provide needed demic.”
Fund for Family Services block grant and a the exceptions of clinics, day treatment and resources,” said Purcell. “That is exciting.” Negatives in this year’s budget included
variety of restrictions in public assistance pro- continuing day treatment, virtually every Similarly, ASAP applauded several ini- proposed cuts to Medicaid and Family Health
grams. other OMH funded program, whether it re- tiatives to increase collaboration between Plus, re-introduction of “full family sanctions”
Providers are particularly pleased with ceives State Aid or Medicaid reimbursement, substance abuse providers and other service as well as other restrictions on Public Assis-
the Governor’s COLA proposals which ap- will be in line for a COLA. Case manage- sectors. “There is an initiative focused on co- tance and a proposal to expand the Flexible
pear to provide funding for 2.5% salary ad- ment, ACT, supported housing, occurring disorders, another one that looks at Fund for Family Services block grant. Once
justments during the coming year but also call outreach…the list includes some 70 pro- the interface between our treatment system again, the Governor has proposed to include
for additional increases tied to the consumer grams eligible for the COLA,” said Polen- and parole and one that looks at our collabo- $379 million in TANF surplus funds previous-
price index in subsequent years. berg. ration with the child welfare system,” said ly dedicated to Child Care within the FFFS
“The cost of living increase recognizes “We are very happy to see COLAs ex- Coppolla. “This is a theme we have been ar- grant, thereby offering localities an opportuni-
the need to make an adjustment to salaries plicitly acknowledged in a multi-year plan,” ticulating for a number of years. It is really ty to reallocate the funding to other purposes.
across a broad swath of the health and human said Jim Purcell, Executive Director of the great to see something in the budget now.” The budget reduces other sources of funding
services sector,” said John Coppolla, Execu- Council of Family and Child Caring Agen- The Governor proposed increasing fund- for Child Care slightly and holds funding for
tive Director of the Alcohol and Substance cies (COFCCA). “We are also pleased that ing for the Advantage After-School Program Universal Pre-K at current year levels.
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Catholic Guardian Society and funded adoption program that is sensi- abuse and neglect prevention, foster
tive to the needs of birth parents and boarding home and adoption, residential
Catholic Home Bureau Merge adopted children, and a large foster treatment, family reunification, and juve-
boarding home program. It also offers nile justice services, the Catholic
family day care, homeless services and Guardian Society is a major provider of
The Boards of Directors of the that strengthen families. The new agency maternity services. residential services and respite care for
Catholic Guardian Society and the will broaden services to meet the growing The Catholic Guardian Society, people with mental retardation and de-
Catholic Home Bureau adopted a plan of challenges of caring for individuals with founded in 1908, recently diversified its velopmental disabilities, for individuals
merger effective on January 1, 2006, pend- mental retardation and developmental services to meet changing community with severe hearing impairments, and for
ing all regulatory approvals. The two hu- disabilities. needs. Along with such community- non-ambulatory, dually-diagnosed, and
man service agencies have been providing “The work of the Boards and execu- based child welfare services as child geriatric populations.
care and support independently for chil- tive leadership of both the Catholic
dren, families and individuals with spe- Guardian Society and the Catholic Home
cial needs for over a century. The new Bureau is an excellent example of collab-
corporation will be known as the Catholic oration between two organizations for
Guardian Society and Home Bureau. the sake of ensuring their future capacity
John Frein will serve as Executive Di- to carry out their missions, and a true dis-
rector of the merged entity. Frein previ- play of concern for the families and indi-
ously served as Executive Director of viduals both agencies serve,” said Mon-
Catholic Guardian Society. signor Kevin Sullivan, Executive Director
“The merger, in the planning stage
since May of 2005, will take advantage of
the strengths of both organizations by cre-
ating a single agency capable of offering a
of Catholic Charities. “They are creating a
very strong organization that will be able
to respond effectively to emerging and
changing human needs in our communi-
broader range of services to communities ties.”
than either agency could offer alone,” said
The merger was described as “a
planned response by both Boards of Di-
Catholic Home Bureau was founded
more than century ago by the St. Vincent
de Paul Society in response to the large
number of Catholic orphans being trans-
rectors to changes in child welfare policy ported West on the so-called “orphan
and needs for human services.” Both
agencies have historically offered an array
of child welfare programs including resi-
dential foster care. Within the past decade
trains.” The Home Bureau, as it was
known then, became the first Catholic
agency devoted solely to placing chil-
dren. Its early work sought to address
a refocusing of child welfare policy has re- the needs of dependent children and ease
sulted in an emphasis on prevention overcrowding in orphanages. The
rather than placement, and on programs Catholic Home Bureau offers a privately
How can you study urban issues without studying the
New York Society for the Deaf
Merges into F.E.G.S.
Cities are where fresh ideas and new solutions frequently
New York Society for the Deaf that these state-of-the-art programs are
(NYSD) is merging into the F.E.G.S. easily accessible to all those who need first appear. Milano The New School for Management and
Health and Human Service System. them.”
Urban Policy trains working professionals to be leaders in
NYSD, established in 1912 as the Society “Based on its superb professional
for the Welfare of the Jewish Deaf, has reputation and management excellence, their fields – and activists in their communities around the
been providing services to the deaf and F.E.G.S. is responding to its new respon-
hard of hearing community since its in- sibilities by enhancing services to the world. We focus on urban policy, nonprofit management,
ception. Its services include housing, em- deaf community with sensitivity and re- organizational change, human resources, and health. We
ployment, communication skills, behav- spect,” said John Ruskay, Executive Vice
ioral health, interpreting, as well as a President and CEO, UJA-Federation of offer Master’s and PhD degrees. Our teachers are both
range of special initiatives to serve the New York.
Jewish deaf community. F.E.G.S., whose budget is in excess of world-class theorists and active working practitioners. And
“F.E.G.S. is committed to providing $200 million, reaches 100,000 individuals New York City is our training ground and laboratory.
quality services to those in need of assis- a year through its network of programs
tance,” said Al Miller, Chief Executive Of- operating in more than 300 locations
ficer of F.E.G.S. “We are a proud partner throughout the New York metropolitan
of the UJA-Federation network of servic- area. The merger will enable F.E.G.S. to
es as is the New York Society for the Deaf. strengthen, enhance and expand pro-
The merger of NYSD into F.E.G.S. will en- grams to the Deaf which now include a
sure a seamless continuity of the vital range of Clinical Service Programs, a
services that deaf and hard of hearing in- Sign-Language Interpreter Staffing Ser-
dividuals in our community rely upon. vice, Communications and Vocational
We anticipate that the infrastructure and Programs and a portfolio of over 250 low
management resources of F.E.G.S. will al- income and special needs housing units
low us to build on the existing services of operated through four affiliated housing INFORMATION SESSIONS:
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8 New York Nonprofit Press www.nynp.biz February 2006
PENNIES FOR CHARITY
PENNIES continued from page 1
Senator Charles Grassley (R-IA),
ities during 2004. Each of the campaigns is went so far as to inform the IRS, FTC BIGGER THAN UNITED WAY
listed, showing the charity, the fundraiser, and the US Attorney General that his
the total amount raised and the net pro- committee had “identified Children's A Comparison of 2004 Fundraising on Long Island
ceeds to the charity. Simple math reveals Wish Foundation International, Inc.
what went to the professional fundraiser in (CWFI) as a purported wish-granting
United Way Telemarketers
the form of fees and campaign expenses. charity that may be engaging in de- of Long Island
$13 million $12.0 million Total Raised
ceptive fund-raising tactics.”
HOW BIG IS BIG? Number two on the list is the In- 12 "
While $171 million seems like a lot of ternational Union of Police Associa- 11 "
money, it is a mere pittance compared to tions, based in Alexandria, VA. As 10 "
the total amount of charitable donations with most of the many law enforce-
made by New Yorkers in any given year. ment-related organizations which do 9 " $9.4 million in
In 2002, for example, total contributions by telemarketing fundraising, the Inter- 8 " Fundraising Fees
households in the state were estimated at national Union of Police Associations 7 " $6.3 million
$14.7 billion. By these standards, telemar- isn’t a “charity” at all. Rather, it is a
keting accounts for little more than 1% of 501(c)5 labor union, that raised $6.8
total giving. It is also important to re- million from the general public in 5 "
member that Pennies for Charity shows the 2004, with 91% or $6.1 million going 4 "
amounts raised by all charities registered to its professional fundraiser in fees 3 "
to do fundraising in New York, even if the and expenses.
contributions came from donors living Two other charities in the top ten
1 " $2.6 million net
elsewhere. So, the New York share of these are both clients of Civic Development
contributions is likely to be considerably Group, LLC, based in Edison, NJ 0 " to Charities
smaller. (more about Civic Development a lit-
Nevertheless, we are still talking about tle later). Fire Victims Charitable “The Attorney General's work in Pennies for Charity is of vital importance to donors throughout the State and to all rep-
real money. In fact, the relative size of tele- Foundation from Westerly, RI, raised utable charities,” said Patrick Foye, President/CEO of United Way of Long Island. “Telemarketing fundraising that yields
marketing sometimes appears more signif- $4.1 million and kept only 14%. Can- 25 cents of each hard earned donor dollar is unacceptable. While most charities and fundraisers are reputable and effi-
icant when viewed in local terms and com- cer Fund of America in Knoxville, cient, this type of abuse gives a bad name to the charitable sector and calls out for regulation. Donors should ask those
pared with other forms of fundraising. TN, used Civic Development Group who call them at home: how much will go to the charity? What does the organization do exactly? Reputable charities
Long Island-based charities, for exam- to raise a similar $4.1 million but only should applaud Attorney General Spitzer's work and commit to work with his office to stamp out these abuses."
ple, raised a total of $12 million through kept 12%. On these two campaigns
telemarketing campaigns in 2004. This alone, Civic Development Group retained tal amount raised, with fundraisers earn- keting fundraising campaigns throughout
was actually twice the $6 million total $7.2 million in fees and expenses. It is also ing 45% in fees and expenses. New York the rest of the state. For a look at how these
raised by United Way of Long Island in the worth noting that, according to the BBB City’s role as headquarters for national ad- organizations dominate telemarketing ac-
same year. Since Long Island telemarket- Wise Giving Alliance, in January 2005 vocacy and international relief organiza- tivity on Long Island and in the Hudson
ing campaigns posted the lowest net re- Cancer Fund of America settled charges tions was one significant factor with these Valley, see “This is the Police!” on the op-
turns of any region – 21.9% -- charities only from the Massachusetts Attorney General organizations accounting for $12.5 million, posite page.
received $2.6 million. The professional that the charity and its fundraisers had vi- or approximately half of all funds raised.
telemarketers pocketed fees and expenses olated charitable solicitation laws by mis- Major players in this arena were Planned FEW CBOS TAKE TO THE PHONES
of $9.4 million. Yes, that’s right. The pro- leading potential donors to believe that lo- Parenthood Foundation which raised $3.6 Relatively few local health and human
fessional telemarketing fees alone were cal cancer patients and their families million and Amnesty International with service providers utilize professional tele-
more – a full 50% more – than United Way would directly benefit from all or substan- $2.3 million. Both of these organizations marketers as a fundraising strategy.
of Long Island’s entire campaign proceeds tially all of the funds raised, when CFA re- posted net returns to the charity in excess In New York City those organizations
for the year. ceived only 20%-30% of the proceeds, used of 60%. using telemarketing were:
a small percentage to provide indirect as- Local arts and culture organizations • New York and Presbyterian Hospital
WHO ARE THOSE GUYS? sistance to local cancer organizations, and are also significant telemarketers in New raised the most, $724,925, but had the
Pennies for Charity provides a complete donated only a small amount of money in York City, unlike some other areas of the lowest net proceeds of $222,595 or 31%.
list of the charities which raised money direct assistance to cancer patients nation- state. These groups, accounted for $8.1 • Gay Men’s Health Crisis raised $312,986
through telemarketing campaigns in New ally. million in total fundraising, or approxi- with a 58% net return of $180,178.
York during 2004. Many were calling from mately one-third of telemarketing activity • New York Cares raised $125,577 with a
somewhere else. In fact a total of $111 mil- THE LOCAL CONNECTION in the City. As a category, arts groups also 57% net of $71,398, and
lion, or almost two-thirds of all funds A New York perspective on national were most efficient in their fundraising, • God’s Love We Deliver received $78, 390
raised through telemarketing campaigns fundraising is interesting, but what does with approximately 67% of all contribu- with a 49% net of $38,079.
went to charities outside New York State. the telemarketing landscape look like a lit- tions going to the charity. Among those On Long Island and in the Hudson
Out of 215 of these national cam- tle closer to home. Who is using telemar- with the best results were Carnegie Hall Valley, Police Athletic Leagues appear to be
paigns, approximately 25 charities raised keting? How much do they raise? How Society ($2.9 million and a 75% net return), the main exceptions. The Suffolk County
at least $1 million and four solicited over much do they keep? the New York City Opera ($1.7 million, PAL used two telemarketing campaigns to
$5 million. Among the top ten are several The answers to these questions vary 68%), New York City Ballet ($1.4 million, raise a total of $444,003 in 2004. Net pro-
which you would expect to see: the Multi- substantially by region, even within New 58%) and the Philharmonic Society ($1.2 ceeds to the organization were $131,198, or
ple Sclerosis Association of America ($5.8 York State. Charities based in New York million, 66%). 30% of all contributions. Several PAL’s in
million), Mothers Against Drunk Driving City, for example, raised $24.5 million in Noticeably absent from New York City the Hudson Valley also mounted profes-
($5.4 million), the National Right to Life 2004 and posted the best results in terms of were the law enforcement-related organi- sional telemarketing campaigns.
Committee ($4.6 million) and NARAL Pro net proceeds. Charities kept 55% of the to- zations which are a mainstay of telemar- While local nonprofit human service
Choice America ($3.8 million).
The top fundraiser on the list sounds
familiar but may not be. Children’s Wish
Foundation International (CWFI), based in Top Ten Telemarketing Charities in New York City
Atlanta, raised $7.7 million in 2004. The or-
ganization, whose name is similar to the Total Net to % to Fundraiser
better known and more highly regarded Charity Raised Charity Charity Fees/Expenses
Make a Wish Foundation, has had some le-
gal scrapes in recent years. In 2002, the Planned Parenthood Federation of America Inc. $3,639,765 $2,251,505 62% $1,388,260
Commonwealth of Pennsylvania found Carnegie Hall Society Inc. $2,894,651 $2,185,620 76% $709,031
that CWFI had made “41 false material Amnesty International of the USA Inc. $2,307,198 $1,395,794 60% $911,404
statements” with regard to the fair market New York City Opera Inc. $1,663,893 $1,133,340 68% $530,553
value of the gifts-in-kind it had made. That New York City Ballet Inc. $1,431,210 $829,718 58% $601,492
same year, Florida initiated a suit against it ASPCA $1,387,897 $522,201 38% $865,696
for filing reports which inflated the worth Philharmonic Symphony Society of New York Inc. $1,194,773 $782,402 65% $412,371
of toys and goods it provided to organiza- Planned Parenthood Action Fund Inc. $1,192,974 $546,752 46% $646,222
tions that cared for seriously ill children. Anti-Defamation League of B’nai B’rith $977,358 $336,746 34% $640,612
The charity even came to the attention of Natural Resources Defense Council Inc. $747,333 $242,620 32% $504,713
the Senate Finance Committee whose chair,
February 2006 New York Nonprofit Press www.nynp.biz 9
PENNIES FOR CHARITY
executives don’t see many colleagues in The vast majority of programs did we had to take on the burden ourselves we ing, to raising funds, to building aware-
Pennies for Chartiy, they find some names much, much worse. One fifth of all cam- would end up with less money. The fact is ness, or educating the general public on
they haven’t heard before. Long Island paigns received less than 20% of the total that we raise $800,000 to use in the com- important matters,” said the DMA-Non-
providers, in particular, found some sur- donated dollars. Forty-five of the cam- munity.” profit Federation in response to this year’s
prises. (See “On Long Island: Who is Call- paigns returned less than 10% and of these Clearly there are expenses associated report.
ing? Do I Know You?”) 23 actually lost money. with any fundraising activity. “If I charge “Some campaigns are very difficult,”
Under these circumstances, why somebody $200 to play in a golf tourna- said DMA-NF Executive Director Senny
HOW MANY PENNIES DO YOU WANT? would any charity choose to undertake a ment, I am not getting $200,” says Wald- Boone. “The nonprofit may be new. They
Pennies for Charity is intended to shock professional telemarketing campaign? bauer. “I have to pay the golf course, the may be prospecting for donors. You may
the general public with the fact that, on av- “I couldn’t do it here without them. I caterer, and all the rest. When you get to make a lot of calls to generate the interest.
erage, charities received only $0.37 of each would have nothing,” says George Wald- the bottom line, if I am making 40% on a It is going to cost a lot of money to raise a
telemarketing dollar raised during 2004. bauer of Suffolk County PAL which gener- golf tournament, I am making a lot of mon- dollar. That doesn’t mean the campaign
This, itself is an improvement, up from ated $131 ,198 with an average 30% net ey. If I have a solicitor out there generating wasn’t successful.”
$0.34 a year earlier. proceeds on his two campaigns. “We did a 40%, what is the difference?”
However, this average masks a very lot of this type of fundraising ourselves The DMA Nonprofit Federation ar- THE RIGHT WAY TO DO IT?
wide range of performance which in turn years ago. By the time you get done paying gues that the “Pennies for Charity” measure- These finer points of strategy are not
raises additional questions about the po- your phone bills, paying your rent and ment of performance is one dimensional lost on organizations generating the high-
tential possibilities and pitfalls of telemar- paying your people, you can’t make the and fails to recognize widely varying goals est net proceeds from their telemarketing
keting as a fundraising technique. money. You are better off letting an outside which nonprofits set for their campaigns campaigns. Successful groups rarely do
A small number of campaigns – only guy do it.” and the various degrees of difficulties non- the cold calling associated with law en-
25 out of 550 – generated 65% of the funds “The benefit of having the telemarket- profits face. “The decision by a nonprofit forcement or other broad based telemar-
raised in net proceeds. This is the base lev- ing company is that they bear the expenses to work with a professional fundraiser keting campaigns.
el recommended by the Better Business Bu- and burdens,” says Fraternal Order of Po- must be based on the specific goals and ob-
reau’s Wise Giving Alliance standards. lice spokesperson Kevin Ryan. “We feel if jectives, which may range from advocat- PENNIES continued on page 10
“This is the Police!” A Fundraising Brotherhood
Fraternal Order of Police Empire State Lodge, Inc.
Law enforcement-related nonprofits are a dominating presence among &
telemarketing fundraisers throughout most of New York State – except for
New York City. On Long Island, nonprofits with a law enforcement theme
Civic Development Group LLC
accounted for almost three-quarters (73%) of all professional telemarketing Total Net to % to Fundraiser
calls, raising a total of $8.7 million in 2004. In the Hudson Valley, law en-
forcement-related organizations raised $4.4 million, or 60% of the telemar-
Year Raised Charity Charity Fees/Expenses
keting total. Local fire fighter associations and other organizations with a 1995 $4,381,256 $884,377 20% $3,496,879
fire fighter theme accounted for $288,934, or another 4%. 1996 $6,723,451 $1,265,926 19% $5,457,525
These law enforcement organizations range from the New York State 1997 $4,993,513 $749,027 15% $4,244,486
Fraternal Order of Police, a statewide organization with 20,000 members, to 1998 $4,343,576 $650,000 15% $3,693,576
dozens and dozens of smaller local groups -- the Eastchester Police Benevo- 1999 $1,720,195 $525,579 31% $1,194,616
lent Association, the Glen Cove City PBA, the Southampton Town PBA, etc.
2000 $2,340,784 $504,550 22% $1,836,234
It takes a scorecard to sort out the specific beneficiaries of campaigns on be-
2001 $1,229,557 $245,911 20% $983,646
half of groups such as the Suffolk County Detectives Association ($176,756),
Suffolk County Detective Investigators ($104,640), Suffolk County Police 2002 $5,273,828 $594,282 11% $4,679,546
Conference ($107,000) and the Suffolk County Police Memorial Fund 2003 $3,708,293 $464,000 13% $3,244,293
($99,388.) 2004 $3,559,053 $822,565 23% $2,736,488
Typically, law enforcement-related telemarketing campaigns are among Total $38,273,506 $6,706,217 18% $31,567,289
the least efficient when measured by the net proceeds to the organization.
On Long Island, these campaigns generated only 23 cents in net proceeds for
each dollar actually contributed. In the Hudson Valley, the net proceeds were 25 “I don’t want you to get the impression this is a total charity-based organization
cents on the dollar. and all the money they raised goes to charity,” says Ryan. He is right. In 2004 after
The larger law enforcement-related nonprofits are major fundraisers – gener- FOP raised $3.6 million in contributions and paid $2.7 in fundraising fees and cam-
ating as much locally as many national charities. They are also exceptionally large paign expenses, the organization only reported making $89,155 in contributions to
sources of fees and campaign expenses for professional telemarketers. other beneficiaries. The balance went to support FOP’s own management, adminis-
The Fraternal Order of Police Empire State Lodge (FOP) raised $3.6 million in tration and in-house programs. “They have other programs they implement within
2004, making it the largest telemarketing fundraiser on Long Island. Only the organization,” says Ryan, citing a Kids Care program which provides photo ID
$822,565 actually went to the organization with $2.7 million going to Civic Devel- kits for families, DWI training and a Road Rage program.
opment Group LLC (CDG) for fees and campaign expenses. The 23 cents on a dol- However, donors to law enforcement organizations may have reasons for mak-
lar return is apparently fine with FOP since they have been working with Civic De- ing a contribution, other than their sense of charity.
velopment Group for at the past ten years. During this time, they together have “There can be a coercive effect when the local police or fire support organization
raised $38.3 million from generous New Yorkers with $31.6 million of it – 82% -- calls for a donation,” says Sean Delany, Executive Director of Lawyers Alliance for
going to CDG in fees and expenses. New York. Delany served as Assistant Attorney General-in-Charge of the Charities
CDG also worked with Long Island’s second largest telemarketing nonprofit, Bureau from 1995 to 1997, during which the Attorney General published New York
the New York State Association of PBAs, which raised $2.1 million in 2004 but only State’s first Pennies for Charity report. “You want to make sure that you are getting es-
netted $328,251, or 16% of the proceeds. The balance, $1.8 million went to fundrais- sential services to protect your home and your business and you are afraid to say no.
ing fees and campaign expenses. I have heard more than one victim of these solicitations say that was a factor.”
Several questions arise out of the dominant role of law enforcement-related “It gives the impression that law enforcement is for sale,” says Pamela Delaney,
nonprofits in the world of professional telemarketing. What do these groups do? President of the New York City Police Foundation. “We never make telephone solic-
Are they charities at all? Why do donors contribute? itations for funds.”
“Their mission is to promote the law enforcement community, to support the Ryan discounts these concerns as unrealistic. “We are not trying to intimidate
law enforcement community and to help the law enforcement community get the anybody,” says Ryan. “I get calls, too, and I never get the sense that if I say ‘no,’ the
word out there about all the good things they do,” says Kevin Ryan, a spokesperson police are not going to carrying out their duties.”
for the New York State Fraternal Order of Police Empire State Lodge. “They do a lot Civic Development Group which raised money for both FOP and the NYS As-
of community outreach and donations to various charitable causes and interests. sociation of PBAs, does lots of work with law enforcement organizations and has
They have a strong relationship with Easter Seals, Sloan Kettering and Deborah run into some legal problems of its own as well. In 1998, CDG settled with the
Hospital in New Jersey. They do work with Special Olympics. They do work with Federal Trade Commission on charges that it had “misrepresented to consumers
probably about a dozen different charitable causes in this region where they donate nationwide that contributions they were soliciting on behalf of a non-profit or-
time, money and manpower.“ However, FOP, like most of the law enforcement-re- ganization, the American Deputy Sheriff's Association (ADSA), would benefit
lated groups, is not a charity. FOP is not a 501(c)3. Rather, it is a 501(c)8 Fraternal law enforcement in their own communities.” CDG did not return phone calls re-
Beneficiary Organization. As a result, contributions to it are not tax deductible. questing a comment.