From the Fall 1999 Watchdog
Report
Wishful
Giving Goes Down the Well
Whoops! The professional telemarketing solicitor had
it reversed. The solicitor told potential donors that 80% or more
of their donation would be used for granting the wishes of terminally
ill children when in actuality the solicitorsnot the childrengot
the 80%.
This was no honest mistake, according to the Attorney
General of Minnesota, who has charged Wishing Well Foundation
USA, Inc. of Metairie, Louisiana and its hired fundraiser, Gecko
Communications, Inc. of Iowa and Missouri with charities fraud in
a lawsuit that seeks to stop such practices. Wishing Well, whose
purpose is to grant wishes to children with life threatening illnesses,
took in $3.5 million in 1996 and 1997 yet only spent $45,214, or
1% of these contributions, on granting wishes, according to the
Minnesota A.G.
The Minnesota A.G. alleged that donors were given
the false impression that Wishing Well, which started in 1995 and
began fundraising in Minnesota in October 1998, was a well-known
local charity. Donors were told to send checks to St. Cloud
Donor Response Center, which was nothing more than a private
mailbox. Solicitors did not inform potential donors that Wishing
Well Foundation USA did not have an office in St. Cloud or in Minnesota
at all, and was actually located in Metairie, Louisiana. The A.G.
also alleged that telephone solicitors neglected to tell potential
donors their companys name and disclose that they worked for
a professional fundraising company, a direct violation of Minnesota
law.
Wishing Wells lawyer, Matthew Brown, told AIP
that the organization no longer relies on professional fundraisers
and that they are pursuing grants and looking to their local community
for support. In the meantime, the lawsuit has asked the court
to stop the defendants from engaging in fraud, order them to comply
with Minnesota law and award civil penalties, investigative costs
and attorneys fees.
|