I get several calls per week from various annoying telemarketers, ranging from “Heather from Card Services” to the “free alarm system” scam to some really questionable charities. The charity that called me yesterday was The Wishing Well Foundation. Because the name sounds suspiciously like Make A Wish, I was immediately on alert.
So while the telemarketer is giving me the pitch, I looked on Charity Navigator for information about their financials. It turns out that less than 10% of their revenues goes to their program, which is theoretically about helping sick kids. Somewhere around 86% of their budget goes to paying for fundraising, which appears to mostly be all fees and commissions paid to telemarketers.
My question is this: on Charity Navigator, there seem to be a bunch of charities that have extremely high fundraising budgets, leaving little money left over to actually do charitable work. Are some charities set up as a telemarketing jobs program to benefit the telemarketing firms and owners of said firms?