THE IMPACT OF PROFESSIONAL SOLICITORS ON FUND-RAISING IN CHARITABLE ORGANIZATIONS

Donors claim that information about the fund-raising methods used by a charity is important to them, and the press periodically highlights f und-raising scandals and abuses, which fuels negative public attitudes . However, there is little systematic empirical research about fund-ra ising practices. This study examined professional solicitor contracts using information provided by the Commonwealth of Pennsylvania's Burea u of Charitable Organizations. The nature of the contracts, the impact of these contractual arrangements on the amount of funds the clients ultimately receive, and the relationship between actual and predicted returns were examined. Results showed that charities using professiona l solicitors tended to be larger and concentrated in the advocacy, dis ease/disorder, and public safety subsectors. Most campaigns generated few contributions and resulted in a small return to the charity, with many charities receiving nothing from the solicitations made in their names. Solicitors compensated by fixed-fee rather than by commission g enerated more contributions and provided proportionately greater retur ns to charities.