The phone rang at the New To Las Vegas World Headquarters. The cold caller said her name was Grace Miller. She sought a donation by me to the Childhood Leukemia Foundation, headquartered in far-away Brick, N.J., and asked if I would make a pledge.
I said I would be happy to review any literature she could send me. This apparently was not exactly the answer she hoped to hear. We had a back and forth. But after Miller could not get me to commit to a donation–on what likely was a recorded line, which would be used against me should I decline to pay–she terminated the call.
This afforded me the chance to locate online CLF’s latest financial filings, for the year ending December 31, 2017. They might help explain the extreme urgency of Miller–not actually a person but an interactive computer-generated voice monitored by a human–to get a sight-unseen pledge from me. By CLF’s own filings, the charity spent more than 75% of the money donated on fundraising costs, dwarfing the amount left for, say, helping kids fight illness, the stated mission. Indeed, according to the filings, of CLF’s total expenses for the year, just 21% went to the mission.
Since donors usually want the bulk of their gifts to go to the cause, these are terrible financial efficiency ratios for a charity. How terrible? CLF won’t agree to be evaluated by the Better Business Bureau Wise Giving Alliance, a charity watchdog group that says no more than 35% of donations should be spent on fundraising expense, and no less than 65% of the total budget on the mission. Not sending the BBB paperwork is a huge red flag for would-be donors.
On its zero-to-four-stars scale, Charity Navigator, another leading nonprofit watchdog, gives CLF an overall rating of zero stars. It doesn’t come any lower than that. Last year, Consumer Reports magazine listed CLF on the bad side of its “Best and Worst Charities for Your Donation.” Yelp reviews are no kinder.
On top of all this that, CLF was soliciting illegally in Nevada. With a few exceptions not applicable here, a 2013 Nevada law prohibits non-religious charities from seeking donations in the state without first registering with the Nevada Secretary of State’s office and renewing that registration annually. CLF does not come up in the online database on the Secretary of State’s website as ever being registered. I confirmed this by calling the main office in Carson City. Nor, I was told, was an application from CLF being processed but not yet in the system. Continue readingShare on Facebook