Home' The Wellingtonian : January 19th 2012 Contents JANUARY 19, 2012
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3 Ribble St trolleys
8 Dining 10-11 Opinion
12 Wellingtonian interview 17-18 Arts 22-24 Sport
The booming business
of collecting for charity
Bookwork: Getting down to the business of donating money.
Photos: EMMA BEER
By JIM CHIPP
Hard-sell: Cornucopia fundraisers hard at work this week in Lambton Quay.
supporters may be surprised to
learn how much of their donations
end up in private Australian
The Wellingtonian has learned
that one fundraising company
charges charities up to 90 per cent
of the first year s donations and
its fee is paid up front.
Fundraising employs people on
New Zealand streets to ask
passers-by for monthly donations
for various charities. In the last
week they have been active in the
Wellington region on behalf of
New Zealand Red Cross.
They were notably camera-shy
when The Wellingtonian
attempted to photograph them.
In job advertisements, the fund-
raisers are offered the chance to
earn from $750 to $1500 a week.
Cornucopia director Gregor
Drugowitsch emailed a response
from Brisbane to The Welling-
He said Cornucopia employed
25 fundraisers in New Zealand on
behalf of the Fred Hollows Foun-
dation, Oxfam, IHC and New Zea-
land Red Cross.
Fundraisers were engaged as
employees or contractors, with
various different payment
structures, including hourly rates
and performance-related pay.
How much they were paid
depended on overall success in
signing up supporters, donor
feedback, cancellation rates and
length of service, he said.
The most successful fundraisers
were regularly taken overseas to
see the charities work to keep
them motivated and inspired, Mr
Red Cross Project Partners
manager Kalimar Donvin-Irons
said Cornucopia s fee was 80 per
cent of the donor s contributions
in the first year, or almost 10
Ms Donvin-Irons said Cornu-
copia had been fund-raising for
Red Cross for 10 years and the
programme generated millions of
dollars each year for its work.
Part of the fee was paid as an
immediate lump sum and the rest
as a portion of the first year s
donations, she said.
Oxfam spokesman Jason Gar-
man said Oxfam paid Cornucopia
an up-front fee for signing up each
pledge, equating to 22.5 per cent
of the total expected payments
over the four-year period the aver-
age donor contributed.
That equated to 90 per cent of
the first year s donations, and the
fee was paid within four months of
the donor signing up.
Regular donors are crucial for
Oxfam to bring lasting change to
poor communities. They enable us
to plan ahead and deliver effective
through having a predictable
funding stream, Mr Garman
Donors were offered options of
70 cents per day, $1 per day and
$1.67 per day, and they were free
to cancel contributions any time.
When professional fundraising
appeared in New Zealand several
charities, including Red Cross and
Oxfam, set up the Public
Fundraising Regulatory Associ-
Association manager Karen
Ward said it was a self-regulatory
body with a very strict code of
We don t have knowledge of
particular contracts. We have a
disclosure statement and that is
very transparent on the pledge
form, Ms Ward said.
The association s code of con-
duct required pledge documents to
contain a disclosure statement
that the average cost to charities --
the amount paid to the
fundraising company -- should be
about 20 per cent of the average
contribution, but did not prescribe
how or when it should be paid.
Face-to-face fundraising was
the most cost-effective method of
raising awareness and also
created an ongoing relationship
for four or five years, but it had
costs, as did all forms of
fundraising, she said.
We sometimes forget that this
fundraising allows these charities
to achieve some amazing results
across many deserving causes.
Ms Ward said the association
also co-ordinated with city
councils to roster the member
charities activities in Wellington,
Auckland and Hamilton.
It asked the councils to make
membership of the association
compulsory for all face-to-face
fundraisers working in the cities.
Wellington City Council spokes-
man Richard MacLean said the
council did not have the power to
do that, but officers dealt with the
association regularly to co-
ordinate fundraising activities.
Council staff occasionally had to
move fundraisers along when
their activities obstructed narrow
sections of footpath or zebra
crossings, or blocked business
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