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Saving you money – Protecting your rights - Untangling spin

Telemarketing, True Blue, and You

Monday, February 8, 2010
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Phone bank companies get 80%, cops get 20% and you the law-abiding citizen on the end of the line get...

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By: Pat Daley

  The Calgary Police Association has said it's contemplating a take-off on Toronto's Operation True Blue. That's where telemarketers offered windshield decals in return for contributions supporting the police platform in the next municipal election - political fundraising that has now been stopped by an interim injunction.
  If it happens, Calgarians inclined to support these activities should ask a lot of questions about where the money is actually going. Back in Hogtown, the telemarketing firm hired to fundraise for True Blue took an 80% cut of any and all monies collected, according to news reports.
  The company in question is Xentel DM Inc., self-described as "North America's largest producer and marketer of family-oriented, cause-related events" with offices conveniently located in Toronto, Calgary, and Fort Lauderdale.
  They're big and chances are you may have bought tickets to some of their "benefit entertainment" events. They help raise money for law enforcement organizations, Shrine Temples, International Association of Fire Fighters affiliates and members, and other not-for-profit organizations. The groups can hire Xentel to organize their event or sponsor a Xentel-owned event such as The Royal Canadian Circus™ & Cirque D' Etoiles™, Allstars Baseball Benefit™, Legends Alive!™, Oldtimers' Hockey Challenge™, and Mini-Hoops Basketball Benefit™.
  And Xentel makes money. Its Canadian operation made almost $33 million in the first nine months of 1999, with net earnings of more than $2 million in the same period.
  Not that there's anything wrong with that. They're not breaking any laws by taking on fundraising contracts that give them a percentage of any monies collected. In fact, Xentel proudly stakes its claim to professionalism by noting that it "developed and implemented the first college-approved telesales training program in Canada."
  All the same, Operation Phonebusters - the national telemarketing fraud squad run by the Ontario Provincial Police - advises people to hold on to their money when the telemarketers come calling.
  Xentel made 130,000 cold calls in one month on behalf of Operation True Blue and garnered pledges totalling more than $300,000. By early February, however, only about $80,000 had been collected.
  Why would the Toronto Police Association so vigorously defend an operation that so far has netted it $16,000? Well, any fundraiser or political organizer will tell you the real value is in the contact lists that the telemarketers have been able to generate. Whether they actually hand over the money or not, a good number of Torontonians expressed support for True Blue's goals.
  That's a gold mine for the TPA when next fall's municipal election campaign really heats up.
  There's one other thing to remember: the True Blue campaign is not a registered charity and never will be because charities in Canada are prohibited from engaging in political activity. If you do support the police associations' cause - in Toronto or Calgary - don't expect to get a tax receipt for your donation.
  Do expect another phone call.

Pat Daley is a freelance writer and editor in Athlone in Simcoe County, Ontario.

Get More/Do More
You can see which Canadian charities have formally adopted the Centre for Philanthropy code by visiting their website at www.ccp.ca

If you want to know if a group is a registered charity, check the government database at www.ccra-adrc.gc.ca/tax/charities

Xentel DM Inc. is at www.xentel.com

Visit Operation Phonebusters at www.phonebusters.com

Other articles from The Daily Daley
  View from the Hills
  Auctioning asthma
  Feds promise bandaid for medicare bloodbath
  Marketing, Bell Canada style
  On squeegies, telemarketers and panhandling cops
  Get out of jail free cards...
  Provinces take federal money, leave students and families cold
  Meet me at Yonge & Straight Goods
  Did civil service cuts cause jobs fund "boondoggle"?

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