Carol Patterson was waiting for a call from her doctor. When the phone rang on that afternoon in August 2011 at her home in Cortland, Ohio, it wasn’t a physician on the other end. A woman named Robin said she was representing the American Diabetes Association.
Robin didn’t ask for money. She asked Patterson to stamp and mail pre-printed fundraising letters to 15 neighbors. Both of Patterson’s parents and one grandmother had been diabetic, so she agreed to do it.
“I thought since it does run in the family, it wouldn’t hurt for me to help,” says Patterson, 64, a retired elementary school teacher. She guessed, based on what she knew about charity fundraising, that about 70 to 80 percent of the money she brought in would be used for diabetes research.
The truth was almost the exact opposite. The vast majority of funds Patterson, her neighbors and people like them throughout the country would raise — almost 80 percent — would never be made available to the Diabetes Association. Instead, that money collected from letters sent to neighbors would go to the company that employed Robin and an army of other paid telephone solicitors: InfoCision Management Corp.
Just 22 percent of the funds the association raised in 2011 from the nationwide neighbor-to-neighbor program went to the charity, according to a report on its national fundraising that InfoCision filed with North Carolina regulators.
“It’s like a betrayal,” Patterson says, sitting in her kitchen in June, after being shown copies of the North Carolina report and the contract the association signed with InfoCision. “I know I won’t donate again. It’s like they stabbed you in the back. It’s terribly wrong.”
And it gets worse. Many of the biggest-name charities in the United States have signed similarly one-sided contracts with telemarketers during the past decade. The American Cancer Society, the largest health charity in the United States, enlisted InfoCision from 1999 to 2011 to raise money.
In fiscal 2010, InfoCision gathered $5.3 million for the society. Hundreds of thousands of volunteers took part, but none of that money — not one penny — went to fund cancer research or help patients, according to the society’s filing with the Internal Revenue Service and the state of Maine.
Every bit of it went to InfoCision, the filings say. The society actually lost money on the program that year, according to its filings. InfoCision got to keep 100 percent of the funds it raised, plus $113,006 in fees from the society, government filings show.
Major charities compound the deception by encouraging telephone solicitors to lie. InfoCision scripts approved by both the Diabetes Association and the Cancer Society for what the telemarketer calls neighbor-to-neighbor campaigns in 2010 instruct solicitors to say, when asked, that at least 70 percent of the money raised will be used for charitable purposes.
Yet in contracts with InfoCision in that very same year, the association and society said they expected that the telemarketing firm would keep more than 50 percent of all the funds it collected.
Altogether, more than 5 million Americans volunteered to raise money for these two groups — and other charities that hired InfoCision — from their neighbors since 2005 after being pitched by solicitors using charity-approved scripts, according to state regulatory filings.
Charities should be held accountable for deceptive fundraising done in their name, says James Cox, a professor at the Duke University School of Law in Durham, N.C.
“If that’s what they do systematically, then they’re obtaining money under false pretenses,” he says. “I don’t just think it’s incredible. I’d be surprised if it isn’t criminal.” Naomi Levine, chair and executive director of the George H. Heyman Jr. Center for Philanthropy and Fundraising at New York University, says charities are knowingly being dishonest.
“I’m amazed at that,” she says. “I didn’t know about it. It’s deceitful.” Levine, 89, was a nonprofit fundraiser for three decades, bringing in more than $2 billion for NYU.
“Even for them to engage in a program like that is shocking to me,” she says. “And I’m in the field. So how can you expect donors to know that?”
Richard Erb, vice president of membership and direct marketing at the Alexandria, Va.-based Diabetes Association, defends his group’s practices.
“If we came into it and said, ‘Geez, I’m not going to make a dime on this,’ do you think we would have anyone who would give us money?”
InfoCision, which is based in Bath Township, Ohio, near Akron, says on its website that it raises more money for nonprofits than any other telemarketer in the world. The privately held company was founded by Gary Taylor, who got his start raising money for evangelical preachers.
InfoCision, which isn’t required to and doesn’t disclose revenue or profit, also does marketing for corporate clients such as Time Warner Cable Inc. and Verizon Communications Inc. The company has a political operation as well.
It did fundraising for Citizens United, the conservative group best known as the plaintiff in the Supreme Court case that allowed unlimited independent spending by corporations and unions on behalf of political candidates. From 2009 to 2011, InfoCision raised $14.7 million for Citizens United.
The telemarketer was as stingy with Citizens United as it was with some of the charities: It kept $12.4 million, or 84 percent, of the money it raised for Citizens United, according to InfoCision filings with North Carolina. InfoCision has also worked for the National Republican Congressional Committee.
The group paid InfoCision more than $115 million to raise money from 2003 to 2012, according to company filings with the Federal Election Commission. The filings don’t say how much InfoCision raised for the committee.
InfoCision has barely been touched by legal trouble over its fundraising for charities. The Ohio Attorney General’s Office, after listening to recordings of phone calls by InfoCision solicitors, negotiated a settlement with the company, filed in civil court in April.
Ohio said InfoCision’s employees had misled people by giving them false information about how much of their contributions would actually go to charities. While denying that it had done anything wrong, InfoCision promised not to mislead potential future donors.
The company agreed to pay $75,000 to settle the case — an amount equal to less than one-10th of 1 percent of its revenue from charity fundraising from 2007 to 2010.
Greg Donaldson, a senior vice president at the Atlanta- based Cancer Society, likens telemarketing campaigns that net the charity low percentages of donations to retailers pricing a product below cost to lure shoppers.
“It’s certainly not inconsistent for organizations like ours to invest in some loss-leader strategies, to engage people in long-term meaningful relationships,” he says.
In the past decade, many of the nation’s biggest health charities have hired InfoCision, including the American Heart Association, American Lung Association, American Society for the Prevention of Cruelty to Animals, March of Dimes Foundation and National Multiple Sclerosis Society.
Overall, InfoCision brought in a total of $424.5 million for more than 30 nonprofits from 2007 to 2010, keeping $220.6 million, or 52 percent, according to state-filed records.
Adapted from Bloomberg Markets magazine.
Sounds like there are buffoons running the charities. Don’t they research before signing on ?
Big non-profits and churches have gone “corporate”. Top management makes huge salaries — staggering sums — and they’re all players in the do-well-by-doing-good arena. Their compensation packages are based on profits and growth, not service or care. It’s good some of the truth about these large scale scams is coming out.
“The Ohio Attorney General’s Office, after listening to recordings of phone calls by InfoCision solicitors, negotiated a settlement with the company, filed in civil court in April…
…The company agreed to pay $75,000 to settle the case — an amount equal to less than one-10th of 1 percent of its revenue from charity fundraising from 2007 to 2010.” -David Evans, Bloomberg News
I guess we all know who the Ohio Attorney General works for. The scales of Lady Justice once again tips. Makes me wonder why.
Im not even sure that 110th of 1% could be considered a slap on the wrist…..but of course they promised not to do it again…
Does anyone know about the actual percentage of donations that make it to Red Cross?
I’m “giving” everyone a $5 donation to a charity this Christmas & obviously want that money to go where it needs to be.
Alykins…your $5.00 gift to everyone would be better spent handing the money to someone in your neighbor that needs help…or buy “poor” kids gift certificates for fruits and vegetables…if you go to a supermarket you can buy gift certificates “earmarked” for particular items…I have been a diabetic for 15 years and NEVER has the diabetic association called to offer me any kind of help…BUT, they have been able to call me to stamp collection envelopes to send to my neighbors for donations….if they know I am diabetic and should collect money, it must mean that I also need help to deal with my diabetes….keep you money or donate to a neighbor….Merry Christmas…
Very good idea and you will know where it goes …………………………… didn’t know about supermarket gift certificates could be “earmarked” for particular items, never to old too learn something new.
Oh and Merry Christmas to you ……………………….
I had to go back and re-read three time to make sure that I read this right about The American Cancer Society………………………………….. “InfoCision got to keep 100 percent of the funds it raised, plus $113,006 in fees from the society, government filings show.”
Is someone in that organization (The American Cancer Society) brain dead ……….or getting a kickback……………. so what is the point of having fund raising if you don’t get any of it.
Sounds like another rip-off to the AMERICAN Public, this outfit should be investigated and shut down, but then again as long as OUR Government and the IRS gets their share they don’t care.
the ACS get the name and address of a willing donor to hit up in future years – directly – without going through a telemarketer.
It’s like a loss-leader product that Walmart might offer. they just need something to hook you with, and then they can sell you something else. Similar concept for this fund raising.
Easy rule for the phone, if they call you you dont give them anything. Not your credit card number, not your name, not your bank secret password. If they have compelled you to give money to thier “charity” go online or call the charity directly. Legitimate or not, do not give someone money who called you.
So the company got to keep 80%, that is fine, as long as the other 22% would not have been raised with out there help.
Now think of all the Call Center employee’s here in Maine!
I looked into a job collecting for a charity…I called the number and got an old school answering machine message…the “business” couldn’t even be bothered to set a message…..needless to say, I decided not to pursue the job…
I worked at 2 Bank of America call center’s and then T-Mobile. They all tell us to provide good customer service but then they pay you bonus on how much you can sling to the customers. The T-Mobile center wanted you off the phone in 6 minutes, whether their problem was solved or not!
“Loss leader?” When a store runs a special as a loss leader, the customer is not hurt. Giving to charity under misleading circumstances may be considered a loss leader measure but I call it robbery.
“Loss leader?” When a store runs a special as a loss leader, the customer is not hurt. Giving to charity under misleading circumstances may be considered a loss leader measure but I call it robbery.
I always ask if the person on the phone works for a fund raiser or the charity itself. My second question is how much the charity gets. The Bangor Firefighters use a for profit fund raiser for their charity baseball game. They get a very small percent of the money raised. If you want to give to charity seek out the charity itself and donate directly, but never over the phone.
I used to run one of those offices in N.H. Was told to tell folks all of it went to charities. NOT TRUE 33 percent went to me and I had to pay my marketers out of that! Got out of that very quickly, scummy way to raise funds. Donate directly, or volunteer! take my word for it! By the way apologies to all , (for the 2 months I did it.)
What con artists rake in for diabetes or lung disease is nothing.
Wouldn’t you rather have just a fraction of what well-meaning people send in to help those TV scammers spread The Word?
The humble Farmer
Would it surprise anyone to find out the head of the crime ring is Gary Taylor who just HAPPENS to be a big Republican donor. I admit the reason I checked was I was quite sure that would be the case.
TAYLOR, GARY L. MR.
AKRON, OH 44333
INFOCISION MANAGEMENT/PRESIDENT & C
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE (R) $2,000
primary 12/18/09
Taylor, Gary L Mr.
Akron, OH 44333
Infocision Mgmt/President & C. E.
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE (R) $25,000
primary 06/11/07
Taylor, Gary
Akron, OH 44333
InfoCision Management Corp./Preside
DIRECT VOICE, THE POLITICAL ACTION COMMITTEE OF THE DIRECT MARKETING ASSOCIATION $5,000
primary 12/21/06
TAYLOR, GARY L
AKRON, OH 44333 DEWINE, RICHARD MICHAEL (R)
Senate – OH
MIKE DEWINE FOR US SENATE $-600
general 10/23/06
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION/CHAIRMAN DEWINE, RICHARD MICHAEL (R)
Senate – OH
MIKE DEWINE FOR US SENATE $600
general 10/21/06
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION/CHAIRMAN DEWINE, RICHARD MICHAEL (R)
Senate – OH
MIKE DEWINE FOR US SENATE $1,300
general 10/21/06
TAYLOR, GARY L
Akron, OH 44333
Executive/Infocison Management Corp FOLTIN, CRAIG MR. (R)
House (OH 13)
FOLTIN FOR CONGRESS $1,000
general 10/18/06
Taylor, Gary L Mr.
Akron, OH 44333
Infocision Mgmt/President & C. E.
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE (R) $25,000
primary 06/23/06
TAYLOR, GARY L MR
AKRON, OH 44333 STEELE, MICHAEL (R)
Senate – MD
STEELE FOR MARYLAND INC $4,200
primary 06/23/06
TAYLOR, GARY L MR
AKRON, OH 44333 STEELE, MICHAEL (R)
Senate – MD
STEELE FOR MARYLAND INC $-2,100
primary 06/23/06
TAYLOR, GARY L MR
AKRON, OH 44333 STEELE, MICHAEL (R)
Senate – MD
STEELE FOR MARYLAND INC $2,100
general 06/23/06
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION/CHAIRMAN DEWINE, RICHARD MICHAEL (R)
Senate – OH
MIKE DEWINE FOR US SENATE $800
general 11/29/05
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION/CHAIRMAN DEWINE, RICHARD MICHAEL (R)
Senate – OH
MIKE DEWINE FOR US SENATE $2,100
primary 11/29/05
Taylor, Gary L Mr.
Akron, OH 44333
Infocision Mgmt/President & C. E.
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE (R) $25,000
primary 05/19/05
Taylor, Gary L Mr.
Akron, OH 44333
Infocision Mgmt/President & C. E.
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE (R) $25,000
primary 07/30/04
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION VOINOVICH, GEORGE V (R)
Senate – OH
BUCKEYE PAC $2,000
general 04/18/04
TAYLOR, GARY L MR.
AKRON, OH 44333
INFOCISION MANAGEMENT CORPORATION/P BUSH, GEORGE W (R)
President
BUSH-CHENEY ’04 (PRIMARY) INC $2,000
primary 06/23/03
Taylor, Gary L Mr.
AKRON, OH 44333
INFOCISION MGMT/PRESIDENT & CHIEF E
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE (R) $25,000
primary 05/23/03
Taylor, Gary
Akron, OH 44333
Infocision/CEO
TOGETHER FOR OUR MAJORITY POLITICAL ACTION COMMITTEE (TOMPAC) $5,000
primary 02/24/03
TAYLOR, GARY L. MR.
AKRON, OH 44333
INFOCISION MGMT/PRESIDENT & CEO
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE CONTRIBUTIONS (R) $10,000
primary 03/27/02
TAYLOR, GARY
AKRON, OH 44333
INFOCISION MANAGEMENT CORP SMITH, ROBERT C (R)
Senate – NH
BOB SMITH FOR U S SENATE $1,000
primary 10/16/01
TAYLOR, GARY L
AKRON, OH 44333
NATIONAL REPUBLICAN SENATORIAL COMMITTEE (R) $500
primary 05/03/01
TAYLOR, GARY L. MR.
AKRON, OH 44333
INFOCISION MGMT/PRESIDENT & CEO
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE CONTRIBUTIONS (R) $10,000
primary 03/22/01
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION MANAGEMENT
REPUBLICAN NATIONAL COMMITTEE (R) $250
primary 09/07/00
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION MGMT
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE CONTRIBUTIONS (R) $10,000
primary 02/22/00
TAYLOR, GARY L MR
AKRON, OH 44333
INFOCISION MANAGEMENT CORP
REPUBLICAN NATIONAL COMMITTEE (R) $1,000
primary 12/22/99
Taylor, Gary L. Mr.
Akron, OH 44333
Info Requested MCCAIN, JOHN S. (R)
President
MCCAIN 2000 INC $1,000
primary 12/06/99
Taylor, Gary L. Mr.
Akron, OH 44333
Info Cision/CEO BUSH, GEORGE W (R)
President
BUSH FOR PRESIDENT INC. $-1,000
primary 10/20/99
TAYLOR, GARY L
AKRON, OH 44333
INFUSION MANAGEMENT BUSH, GEORGE W (R)
President
BUSH FOR PRESIDENT INC. $2,000
primary 09/03/99
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION MGMT
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE CONTRIBUTIONS (R) $10,000
primary 03/10/99
TAYLOR, GARY L
AKRON, OH 44333
INFO CISION MGMT
1998 REPUBLICAN HOUSE-SENATE DINNER (R) $15,000
primary 06/19/98
TAYLOR, GARY L TTEE
AKRON, OH 44333
1997 REP S/H DINNER TRUST & INDIVIDUALS (NON-FEDERAL) $15,000
primary 06/23/97
TAYLOR, GARY L
AKRON, OH 44333
REPUBLICAN NATIONAL COMMITTEE (R) $1,000
primary 03/19/97
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION MANAGEMENT CORP
REPUBLICAN NATIONAL COMMITTEE (R) $1,000
primary 03/19/97
TAYLOR, GARY L
AKRON, OH 44333
INFOCISION MGMT
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE CONTRIBUTIONS (R) $10,000
primary 03/04/97
TAYLOR, GARY L
FAIRLAWN, OH 44333
OHIO REPUBLICAN PARTY STATE CENTRAL & EXECUTIVE COMMITTEE (R) $500
primary 03/03/97
TAYLOR, GARY L
FAIRLAWN, OH 44333
OHIO REPUBLICAN PARTY STATE CENTRAL & EXECUTIVE COMMITTEE (R) $500
primary 01/21/97
TAYLOR, GARY L TTEE
AKRON, OH 44333
INFOCISION MANAGEMENT
1996 REPUBLICAN HOUSE-SENATE DINNER/AKA THE PRESIDENT’S DINNER $10,000
primary 06/13/96
TAYLOR, GARY
AKRON, OH 44333
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE CONTRIBUTIONS (R) $250
primary 06/12/96
TAYLOR, GARY
AKRON, OH 44333
INFOCISION MGMT
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE CONTRIBUTIONS (R) $5,000
primary 05/03/96
TAYLOR, GARY L
AKRON, OH 44333
REPUBLICAN NATIONAL COMMITTEE (R) $2,000
primary 02/07/95
TAYLOR, GARY
AKRON, OH 44333
INFOCISION MGMT
1994 REPUBLICAN SENATE-HOUSE DINNER/AKA PRESIDENT’S DINNER (R) $15,000
primary 06/10/94
TAYLOR, GARY
AKRON, OH 44333
INFOCISION MANAGEMENT CORP
REPUBLICAN NATIONAL COMMITTEE (R) $10,000
primary 01/25/94
Charities can vary a good deal in terms of how much they deliver to their causes and how much they spend on fundraising and overhead. There are various places one can check up on them; one of the best is CharityNavigator.org .