The Toronto Star has been running another excellent investigative series - this time on the dismal state of Canadian charities.

As the series unfolded it came to light that World Vision Canada and Sick Kids (Toronto Hospital for Sick Children) contracted a fund raising company that has been found to engage in dubious practises, although the international British based firm Fundraising Initiatives Inc denies these practises.

A canvasser knocks on your door, tells you about the charity and its need for monthly donors. At Sick Kids they require money to support the world-class children’s hospital; at World Vision you are asked to support a child in a developing nation.

If you agree to sign up, the canvasser takes a void cheque or a credit card number and your monthly promise to donate $10, $20, $30 or more in Sick Kids’ case, or a $35 monthly sponsorship in World Vision’s case.

What you don’t know is that the canvasser and his company get a commission of $180 or more to sign you up. Depending on the size of your donation, it could be six months to a year before your donation starts helping children.

“We do not want (commission fundraising) happening any more,” said Dirk Booy, executive vice-president of World Vision.

Both World Vision Canada and Sick Kids Foundation immediately ended their relationship with Fundraising Initiatives Inc as soon as they were contacted by The Toronto Star.

Top executives at Sick Kids and World Vision are blaming FII, saying the contract signed with the fundraiser states that doorknockers are only to be paid either a flat fee for each “presentation” at a home (in Sick Kids’ case), or either hourly wages or per presentation (World Vision).

The Star found out that after FII signs its contract with a charity, it then hires subcontractors to knock on doors and pays them only for a successful donor sign-up. A source with intimate knowledge of the FII-subcontractor set-up confirmed this.

FII’s training manual (which covers all charities for which it solicits funds) indicates that at least some charities it works for have been directly paying commissions. The manual reminds doorknockers that “a one-time fee is paid to Fundraising Initiatives Inc. for each new donor acquired.”

Told of what the Star has learned, both charities said they must be more careful in the future.

It seems to me that rather than have legitimate and worthy charities accept all the responsibility for hiring fund raising companies that dealt in bad faith, it is also the responsibility of donors to do their homework, not fall for a slick sales pitch and check out the charity they are thinking of giving to.
Having done that, if we are going to give we can give directly to the charity, and help lessen the risk of third party rip off.

World Vision is one of the best run, most effective aid groups in the world. Toronto’s Hospital for Sick Children has touched millions of lives, and it’s staff and services literally saved the life of a member of my family.

Organizations can be duped. Individuals can be duped, and there are no shortage of companies and people willing, able and skilled at getting their piece of the pie.

1) Check out the charity you decide to give to. Do not give impulsively.
2) Do not give anyone who comes to your door voided cheques, credit card numbers, or any personal information. If you are interested in giving, go directly to the charity be it local, provincial or national.
3) Do not give to any solicitor for any charity any information over the phone even if you think you trust them and they say they represent a charity you’ve given to before.
Go directly to the charity, go local as much as possible.
4) A reputable charity values transparency will make it’s financial statements available. Example: World Vision Canada

I think we as donors have to make a choice not to give through third party solicitors if we really want to help. Unfortunately many Canadian charities rely on volunteers willing to do the solicitation and fund raising work.

There are two charity fund raising companies that call me on a regular basis. I suppose I’m on some sold list. It’s dreary. “Hello is Mr. or Mrs. XX there? I’m XX from XXX. How are you today?”

I say ‘No’ and hang up. That’s it. Not even “no thank you.” There is no point in saying anything else. No is not a bad word, I don’t feel guilty. The more they call the more I will dig my heels in. Both charities been calling on a regular basis for three years. They’ll keep calling and I’ll keep saying no. Since charities will be exempt from the federal do not call list, this dance will continue.

There are 82 thousand listed charities in Canada. A lot of them are scams. We as donors cannot punish or walk away from responsible charities that have been duped anymore than we stop giving because we as individuals have been duped. Once both charities found out they had been fooled they took immediate and public action. Reaction really, what else are they going to do at this stage? Example: World Vision Canada

Great charities can be found: but it takes legwork
Rogue charities raised millions
Canada Revenue Agency Registered Charities (because a charity is listed, does not make it reputable. All the listing means is the person or organization has been given governmental charitable status - name, business number, address and charity type. The Directorate has been trying to update it’s complaint process to continue weed out bad apples. That can take years.

Blog - Don’t Tell the Donor