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Resource ID: #14347
Subject: Nonprofits
Source: WBST Radio (Ball St.; Muncie, IN)
Date: 1997-05-19



Reporters learned that charities were contracting out a lot of their fundraising work to professional fundaisers. Indiana Public Radio learned that, in many cases, charities got only 10% (or less) of the money raised, with the rest of the money going to the professional fundraisers. Reporters researched contracts filed between the charities and the professional fundraisers at the Indiana attorney general's office. The story used as sources the attorney general, officials in the fundraising business, law enforcement officials (both those using the professional fundraisers and those cracking down on them), and people abused by fundraisers. Reporters learned that the Federal Trade Commission cracked down on a few Ft. Wayne businesses that were using strong-arm tactics on small businesses throughout the country. We also learned that some of the charities were not using the money for what they claimed.

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