South Dakota Report on Phone Solicitors

Telemarketing companies kept 71.3 per cent of the money they raised last year from South Dakotans in behalf of South Dakota charities, according to a new report from the State Attorney General’s Office. That is slightly more than the percentage they kept in 1995.

The companies raised a total of $1,167,596 in 1996 and passed on only $335,221 to non-profit groups. The rest covered fees, salaries, commissions, and other expenses.

The report shows a broad range of results among the different campaigns run in 1996. One company turned over all of the revenue raised in two telephone drives. Another charged a charity 49.7 per cent more than it brought in on the charity’s behalf.

Even within fund-raising companies, the results varied widely. Facter Direct, which last year gave South Dakota charities 38.2 per cent of the money it raised, turned over as much as 64.1 per cent of the money it brought in for the state chapter of the Children’s Defense Fund and charged the state chapter of Common Cause 13.9 per cent more than it raised in the charity’s behalf.

The “1996 Professional Telephone Fundraising Report” was compiled from figures that professional fund-raising companies are required to file with the South Dakota Attorney General’s Office. Copies are available for free by contacting the Office of Attorney General, Division of Consumer Protection, 500 East Capitol, Pierre, S.D. 57501-5070; (605) 773-4400; fax; (605) 773-4106.