Friday, January 14, 1983
Daily (Mebraskan
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But even using Balentine's figures for
number of children (500) and wholesale
price of toys ($4), the total gift tab would
have been $2,000.
- entertainment One Lincoln enter
tainment agency estimated the cost of the
magician's act at $100; no cost estimate
was obtained for the musicians.
- refreshments. All were donated,
according to Kontos.
- room rental. Balentine rented the
auditorium for $45 - the price for non
profit organization events - according to
a Gateway representative.
Balentine also was responsible for
the operating expenses of conducting a
phone campaign such as hiring solicitors.
The amount of those additional costs
is not known.
The costs that are known equal $2,145.
That would have left Balentine Enter
prizes with $9,855, more than three
times what the sheriffs' group made.
And yet the phone solicitors began
their telephone spiel by saying the sheriffs'
organization was putting on the Christmas
show for the unfortunate and handicapped
children of Lincoln. The solicitor also
said the sheriffs group was buying adjust
able chairs for the handicapped with their
profits. That was only partially true.
At the Christmas party, Kontos told
a reporter the event was a fund-raiser
for his group. He said the sheriffs' asso
ciation, a group dependent on donations
for its existence, would keep $J JDOQ nf
the party's profit and spend about $2,000
for the adjustable chairs. Contacted later,
Kontos said the association will keep
$2,000 and spend $1,000 for chairs or
another similar charity project.
The Better Business Bureau said the
sheriffs organization did not meet its
standards because:
- an excessive amount of funds raised
went to the promoter for administration
and program costs, with only a small
amount going to the sheriff s associa
tion. - the company failed to provide finan
cial information concerning its completed
solicitations.
According to a BBB publication, titled
"Standards for Charitable Solicitations,"
reasonable use of funds requires that at
least 50 percent of donations be spent on
programs and activities directly related to
the organization's purposes; at least 50
percent of the contributions be spent on
the programs and activities described in
solicitations, as expected by donors;
fund-raising costs not exceed 35 percent
of the contributions; and total fund
raising and administrative costs not exceed
50 percent of the total income.
Tefft said her office draws up a report
on each group that applies for a solicita
tion permit.
The Nebraska Sheriffs' and Peace
Officers' Association is not the only
fund drive to be denied the BBB seal
of approval. The Fraternal Order of
Police, a group for UNL police officers,
also received an unfavorable report.
The FOP conducted a fund-ruiscr Dec.
11, the same day the sheriffs group did.
The BBB report said that the event, a
variety show, didn't meet BBB standards
because:
- an excessive amount of funds went
to the promoter, not the FOP;
- the promoter refused to divulge
information about his company or pro
motion. - the company failed to provide finan
cial information about completed solici
tation. Douglas Petersen, FOP president, said
the variety show was operated much like
the sheriffs' party. The FOP hired a pro
moter named Mostafa Vand, who sold
show tickets - $12.50 for a family and
$20 for a business - over the telephone.
Petersen's and Vand's contract called
for a 50-50 split after expenses were ex
tracted. Petersen estimated that between
$22,000 and $23,000 was raised in tickets
sales and other donations. The FOP got
$7,857.90, he said. Vand got that amount
less the amount of his weekly salary.
Fifteen hundred dollars was left in Peter
sen's and Vand's joint checking account
for their next fund-raising project.
The FOP's share will be put in the
group's treasury and used as needed for
involvemert in charitable functions, Peter-
Petersen said he disagrees with the BBB
report. He said he believes BBB thought
that too much of the money raised was
going to leave the city. He disputed that
by saying Vand hired Lincoln phone
solicitors, Lincoln entertainers and rented
the Lincoln High School gymnasium, all
of which pumped money back into the
city's economy.
He also said the BBB is tougher on a
new group - the FOP is less than one year
old - than it would be on more established
groups like the Jaycees.
His charge may be right. One of the Lin
coln Jaycees' latest fund drives raised
more than $60,000; only $9,073.95 of
that went to the Jaycees.
The Jaycees hired Balentine Enterprizes
to sell, via phone solicitation, plastic
trashbags and to provide Balentine's
profits.
The solicitors told potential donors
that the Jaycees were raising money for
a special non-barrier playground for
handicapped and retarded children. The
solicitor said that instead of asking for a
straight donation, the Jaycees were sel
ling 30-gallon trash bags. The bags were
priced at $99.95 for 240, $24.95 for 60
and $14.95 for 30.
Michael Holtzhauser, president of the
Lincoln Jaycees, said the Jaycees' share
of money was put into the general trea
sury and might be used tor any ot tne
60 different charitable activities the Jay
cees pursue each year.
The fourth organization that hired
a promoter was the American Diabetes
Association, a statewide group based
in Omaha. The ADA hired a Salt Lake
City man named Mark Evan as promoter
to put on a magic show in Lincoln last
September.
According to forms filed in the city
clerk's office, $3,779.95 was raised in
ticket sales for the magic show. Under
contract terms, the sales director, Richard
Wright, received 45 percent (for wages of
people he hired and his own expenses),
30 percent went to Evans and 25 percent
went to the ADA.
The financial report filed with the city
clerk did not, however, verify if the con
tract was fulfilled. The lines asking for
the cost of fund raising (wliich includes
the promoter's fees) and for the excess
income (the ADA share) were left blank.
The Omaha ADA office would not provide
the missing information without the
executive director's approval. That indivi
dual was out of town, an office assistant
said.
But Maxine McElligott, ADA presi
dent, said "the only role we (the ADA)
had was allowing him (Evans) to use our
name when selling the tickets."
Costs associated with the magic show
were not obtained.
If the figures indicate that donors are
paying more to promoters than charities,
pefmrffrvUmmty, wca iiy- ma -rfiay -cicy
ordinance controlling the division of
charity dollars is no longer enforced. The
section of the ordinance stating that the
cost of raising funds must not exceed 25
percent of the total raised was declared
unconstitutional in a 1979 court case
involving the Unification Church.
The city currently is reviewing the
solicitation ordinance, said Rick Peo,
assistant city attorney. Among the options
is setting another percentage limit on the
cost of raising funds. Peo said that is un
likely. And it appears that any quick change
in the handling of solicitation permits is
unlikely. The permits, stored in a card
board filing box on the floor of the city
clerk's office, are not always complete.
Ross said the Jaycees' permit to sell trash
bags has been lost for the past three
months. None of the permits included
a copy of the contract between sponsor
and promoter, as Ross said they should.
And, as stated, the financial statement
from the American Diabetes Association
was incomplete.
Under the current situation, as Peo
said, 99 percent of the money collected
in the name of charity could go to
overhead costs, and the city could do little
about it. And until the, city ends its lengthy
review of the ordinance, the situation
isn't likely to change.
, . r : '"1
ffej j?d Jjsjffi TMSulP 5L- Want to Communicate Bolter?
mm
i o) r ( C i r Dl D
ajii uihir fm'mn
il o Mil
t. Paul United
Methodist Church
1 2th and M Streets - Downtown
5 blocks south of campus
WORSHIP at 9:30 and 11 a.m.
. "Our Moral Confusion:
Part 1. Are Absolutes Obsolete?"
Dr. Bevins, preaching
LEARN
ASSERTIVE
SKILLS
The Counseling Center will again offer an opportunity to
leam & practice general assertive skills. Two groups starting
Tuesday, February 1 from 2:30 - 4:30 and Thursday,
February 3 from 1:30 - 3:30 will each meet once a week for
seven weeks. If you are interested, please contact the
Counseling Center, 472-3461.
