1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Charities hand over up to 95% to street marketers

Discussion in 'General Discussion Forum' started by ManlyBacker, Oct 27, 2009.

  1. ManlyBacker

    ManlyBacker Winging it Staff Member

    +972 /7

    CHARITIES such as Oxfam, Red Cross and the Fred Hollows Foundation hand over up to 95 per cent of money raised on the streets in the first year of a pledge to a marketing company.

    Cornucopia Consultancy, the industry leader in what is known as face-to-face fund-raising, has been engaged by leading Australian overseas aid organisations and charities. However, donors were usually unaware what proportion of funds they pledge actually went to the charity.

    ''The reality is that 21st century development agencies are not-for-profit, but they are run on business principles,'' said Marc Purcell, of the Australian Council for International Development, the body that represents aid groups in Australia.

    Cornucopia recruits enthusiastic backpackers on working-holiday visas or students looking for casual work. These so-called ''chuggers'' - charity muggers - convince donors to allow a monthly debit from their bank accounts each month.

    Cornucopia's street marketers, who are paid a base wage of $15 to $20 dollars an hour, are not allowed to collect cash, only credit card or bank details.

    Oxfam Australia's executive director, Andrew Hewett, said street marketing was the backbone of his organisation's growth. Fund-raising in the foreign aid sector last year raised $812 million. ''Most people who join stay around for at least three to four years, in many instances considerably longer,'' Mr Hewett said.

    ''It has given us assured income, which means we are in a much stronger position to plan and respond to needs as they arise.''

    On average, charity donors pledged over four years, which means Cornucopia's cut is about 24 per cent. A Choice consumer survey found last year that four in five people had little idea of what proportion of their donation reached their favoured charity's beneficiaries.

    The director of Cornucopia, Paul Tavatgis, said if donors withdrew from a pledge within the first 100 days, Cornucopia received no fee and the street marketers forfeited any commission.

    But if the donor remained on the charity's books beyond the honeymoon period, Cornucopia charged the charity between 80 and 95 per cent of the total pledged for the first year, regardless of whether the donor withdrew.

    If donors withdrew, charities said they could be left badly out of pocket, depending on the amount pledged. However, all charities accepted this risk.

  2. Guest

    Guest Guest

    +0 /0
    It amazes me why anyone would hand over their credit card or bank details to someone in the street.
  3. ManlyBacker

    ManlyBacker Winging it Staff Member

    +972 /7
    I agree tookey, it is unbelievable. I am just shocked that this form of fund raising has the support of the aid organisations and that they are willing to allow such a huge amount to be passed in commissions and fees.
  4. Guest

    Guest Guest

    +0 /0
    A friends son sells tickets at Brookie oval on game day as well as in shopping centres for the surf lifesaving movement and makes a resonable living from it.  

    People should be encourgaged to donate directly to the charitable orgainisation for the best use of their donations.  
  5. clontaago

    clontaago Well-Known Member

    +170 /1
    I did this whilst living in London when I was younger. Tough job, i've been told to **** off many times in my life, but nowhere near as much as when I did this, for a whole 8 pound an hour.

    I reckon on a daily basis I would have approached somewhere in the vicinity of 100 + people a day, with maybe 1 or 2 signing up.
  6. The Wheel

    The Wheel Well-Known Member

    +2,756 /88
    If you get off a bus at Wynyard or happen to walk down Martin Place or any other main street in Sydney there is always a charity or three out there hawking for business.  Most people just walk straight past, they tend to avoid asking peoplr who look like they work in the city and they get the royal palm off.

    Add the never ending aray of charity days lile Red Nose, Jean 4 Genes, Pink Ribbon etc etc you dead set get sick of people asking for my hard earned spare cash.  If I want tp give it away I will happily hand it over the bar of the schooner at the local PUB.

    Anyway I suggest you give the money to the Salvos when they come around with their collection box - I understand 100% of that goes to their charitable actions.
  7. The Gronk

    The Gronk Well-Known Member

    +37 /0
    yeah and that's just from your missus
  8. Matabele

    Matabele Well-Known Member

    +516 /14
    Anyone else getting sick and tired of everything going pink?  Front page of the Herald the other day and a full page pink advert from the Commonwealth bank (who if they wanted to be good citizens could carve of 10% of their annual profit and double the amount of cancer researchers in one fell swoop).  The  pink bandwagon is well and truly over but I fear it has just begun.

Share This Page