Document text
State: Fund-raising firm told untruths By David Preszler of the Mail Tribune A telemarketing firm that raised money for firefighters and police associations has been accused of misleading consumers. Charitable Aid, a for-profit company with an office in Medford, agreed to stop seeking contributions in Oregon after the state Department of Justice filed a lawsuit in Jackson County Court. The company was raising money using phone solicitors for the Medford Firefighters' Association's "Substitute Santa" program before state officials got a temporary restraining order to shut down the campaign Dec. 9. The program unites a firefighter and an underprivileged child to shop for clothes and a Christmas toy. Lance Gray, head of the firefighters association, said the program will continue. "Tentatively, we're going to go shopping Wednesday," he said. The Substitute Santa campaign is the second program by the firefighters association that Charitable Aid has raised money for, according to Gray. The company also oversaw the "Gus on the Bus" program, a joint effort with Rogue Valley Transportation District earlier this year. Charitable Aid failed to register the Substitute Santa program with the state, a violation of Oregon law. Gray said the company did register the earlier effort and assumed that it didn't need to register again. State officials said the company had registered previous efforts. They also said there was no evidence of wrongdoing by the firefighters association or the Oregon Council of Police Associations, which also hired Charitable Aid. In registering, charities must disclose what percentage of donations goes to the cause and what percentage goes to the fund-raising company. It is common for the bulk of donations to go to professional fund-raisers. Gray said 21 percent of the money raised by Charitable Aid on the association's behalf went to the program; the remainder went to Charitable Aid. He said the program got $8,402, which means Charitable Aid raised more than $40,000 and kept more than $31,600 to cover costs and profits. Groups like the firefighters association often contract with professional fund-raisers because they don't have the time or resources to raise money as effectively. Gray said the association made several calls to check on Charitable Aid before contracting with them. He said the biggest problem he's aware of is that some telemarketers didn't clearly identify themselves as professional fund-raisers rather than firefighters. The state also accused Charitable Aid of making misrepresentations to consumers on fund-raising campaigns for the police association. In one pitch, consumers were told they would receive window stickers that granted "special privileges" from law enforcement agencies. At least one person was told the money would be used to educate children of police officers killed in the line of duty. The Oregon Council of Police Associations has no such program. The lawsuit filed by the state seeks to permanently prohibit Charitable Aid and its president, Ben Block, from conducting fund-raising activities in Oregon. The company is based in Bellingham, Wash. The lawsuit also seeks restitution for consumers who made donations as well as $25,000 fines against each defendant for each violation of Oregon law. No trial date has been set. Consumers who were contacted by Charitable Aid or who would like to verify claims made by telephone solicitors prior to making donations can contact the state's charitable activities section in Portland at (503) 229-5725. Charities can also be researched on the Internet. Visit www.doj.state.or.us and click on the charitable activities button. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA