"Often the most popular causes . . . solicit everyone under the sun to get a few dollars from almost everyone," said Borochoff, of the American Institute of Philanthropy. "That's a really expensive way to raise money."
Donors often have no idea where their money goes.
Disillusioned donor
Pamela Kay Weeks lost both breasts to cancer. After she recovered, she received letters and calls from the American Breast Cancer Foundation, a Baltimore charity that listed research as a priority. Hoping to spare others what she suffered, Weeks wrote a check -- the first of many.
"I'm not a wealthy person," said Weeks, 51, an executive secretary who lives in Sneads, Fla. "I've given what I can."
Weeks thought her donations were headed for a philanthropic powerhouse. But the foundation is one of the nation's least efficient charities, according to the American Institute of Philanthropy and Charity Navigator, another watchdog group.
In 2006 just 2.5% of the American Breast Cancer Foundation budget went to research and 10.5% to mammograms or other services unrelated to fundraising.
In reports filed with the California attorney general from 2003 through 2006, the foundation said it raised $5.8 million from fundraisers, netting just $700,000, or 12%.
The foundation had a particularly close link to one fundraiser, although there was no sign of it in state files.
Phyllis Wolf, executive director of the foundation, created the charity in 1997 with her son Joseph Wolf and two friends. The son worked for the foundation in its early years, then began a for-profit fundraising firm called Non Profit Promotions.
From 2002 through 2006, the foundation paid Non Profit Promotions an average of almost $3 million annually, according to foundation tax returns. That's not illegal, but it violated conflict-of-interest policies used by several large charities and a model policy by the Better Business Bureau.
And despite state laws requiring fundraisers to submit results, no reports by Non Profit Promotions were on record in California or other states whose files were checked by The Times.
Neither Phyllis Wolf nor Joseph Wolf replied to written questions about their fundraising.
Weeks was surprised -- and saddened -- to hear where most of the donors' money went.
"I figured that a lot of it goes to paying people to research cancer," she said. "It's unreal, hard to believe."
--
charles.piller@latimes.com
doug.smith@latimes.com
--
Researchers Maloy Moore and Scott Wilson contributed to this report.
--
About the data
Information analyzed for this report included all commercial fundraising campaigns reported to the state from 1997 through 2006, excluding those involving thrift store sales or vehicle donations.
--
(BEGIN TEXT OF INFOBOX)
What to know before you give
Beware of a hard sell, as when callers offer to send a courier to your home to collect the donation.
Check the charity's tax status. Donations are not deductible for all "tax-exempt" groups.
Ask about the charity's share of what is raised. In California, fundraisers must provide it on request.
Verify that the fundraiser is legitimate. If you suspect a scam, check directly with the charity.
Avoid copycats. Bogus or inefficient charities sometimes use names similar to famous, well-run groups.
Don't offer a credit card number over the phone or send cash.
Don't feel obligated to pay for "gifts." Address labels or other tokens sent by charities as incentives don't require a donation.
Check with watchdog services and guides, such as:
Wise Giving Alliance, www.give.org, for certifications of charities.
American Institute of Philanthropy, www.charitywatch.org, or Charity Navigator, www.charitynavigator.org, for charity ratings.
GuideStar, www.guidestar.org, for access to financial and tax records and for IRS deductibility rules.
California attorney general's office, ag.ca.gov/charities, to file complaints, or justice.doj.ca.gov/cfr/cfr.asp, to find financial records on charities or commercial fundraisers.
Federal Trade Commission, www.ftc.gov or (877) 382-4357, to report fraud.
--
Sources: Federal Trade Commission, American Institute of Philanthropy, California attorney general
--
Los Angeles Times
--
Anatomy of a fundraising cycle
In 2006 telemarketers for Operation Lookout - National Center for Missing Youth registered four campaigns in California. Overall, the charity received about $217,000, less than 15% of gross revenues of nearly $1.5 million. Fundraisers got the rest.
Breakdown of revenue
Midwest Publishing Inc.
Total revenue: $795,507
Returned to charity: $119,326 (15%)
Total expenses: $676,181
--
Contract Communications Inc.
Total revenue: $546,516
Returned to charity: $75,956 (13.9%)
Total expenses: $470,560
--
TeleService USA
Total revenue: $102,205
Returned to charity: $17,375 (17%)
Total expenses: $84,830
--
Kinship Communications
Total revenue: $23,706
Returned to charity: $4,267 (18%)
Total expenses: $19,439
--
Note: Revenues and expenses are not equal because of rounding.
--
Breakdown of expenses
Salaries: $890,212
Telephone: $53,516
Facilities: $78,253
Postage: $88,999
Other*: $140,031
* Includes office expenses, depreciation and profit
--
Source: California attorney general
--
Los Angeles Times
--
On latimes.com
Tracking donations
For a searchable database of commercial fundraising efforts by local nonprofits, see www .latimes.com/charitydatabase
