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Q: For-profit fundraising for non-profit organizations. ( No Answer,   2 Comments )
Question  
Subject: For-profit fundraising for non-profit organizations.
Category: Business and Money
Asked by: cheazbomb-ga
List Price: $15.00
Posted: 06 Jan 2006 14:01 PST
Expires: 05 Feb 2006 14:01 PST
Question ID: 430089
First, let me establish what I ALREADY know. 

I already know that it is legal for a fund raising organization (or even a
company...correct me if I'm wrong) to take a commission or percentage
from funds raised for charity (or other nonprofit orgainizations).  I
also know that the maximum percentage or commission is not dictated by
law (again, correct me if I'm wrong).

What I do NOT know, is whether this funding raising organization (or
business) is allowed to earn money well beyond the cost of raising the
funds.  In other words, is it legal for the company founder,
executives, investors etc. to "get rich" by professional fund raising
for non profit organizations?

If so, and as a result, are there any multi-millionaires or
multi-million dollar companies of this type in the US?  (Names/examples
would be valuable here).

If the above is indeed legal, is there any consensus about what is considered
an ETHICAL commission for professional fund raising groups for 1 and 2 (below)?
Without any consideration of ethics, what is average or typical for 1
and 2 (below)?

1.  Commissions NOT based on percentage? 
2.  Commissions based on percentage? 

Please do NOT respond unless you know the answer to ALL of my
questions and please, give me my 15 bucks worth!
Answer  
There is no answer at this time.

Comments  
Subject: Re: For-profit fundraising for non-profit organizations.
From: pinkfreud-ga on 06 Jan 2006 14:08 PST
 
Laws related to fundraising vary from place to place. It would help if
you'd specify a location.
Subject: Re: For-profit fundraising for non-profit organizations.
From: thither-ga on 06 Jan 2006 14:32 PST
 
Google Xentel.

They are being/have been sued for deceptive fundraising practices. By
the way, they typically keep 75%-85% of the donations themselves.

That's an ethical commission, right?

Have a good day.

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