MEDIA RELEASE: Appco Australia takes legal action against Seven Network

Tuesday, June 27th, 2017

Posted at 4:57 pm

Appco Australia has commenced legal proceedings against the Seven Network for injurious falsehood.

The Seven Network’s Sunday Night program ran a report on Appco Australia on 18 June, which was false due to incorrect claims including:

  • Appco Australia takes up to 93% of people’s donations
  • Appco Australia is a “pyramid-like organisation”

 

As a result of these false statements, Appco Australia commenced legal proceedings yesterday against the Seven Network in the Federal Court.

Sunday Night’s report not only provided an inaccurate view of Appco Australia, but also of professional fundraising and, as a result, has affected charities’ ability to raise the funds they need to deliver their programs.

Corrections to key errors in the Sunday Night report

  • It is absolutely correct that the charity receives 100% of a person’s ongoing monthly donation direct into its bank account via a direct debit.
  • Charities pay Appco Australia a one-off, upfront fee per donor from a separate marketing budget, which also covers all their other fundraising and advertising activities.
  • Appco Australia is not paid a percentage of donations.
  • Appco Australia is required to present its fee as a percentage. In some states we are required to show the fee as a percentage of a person’s first year of donations. That is why it appears as 93% on ongoing pledge forms.
  • Donors give for an average of 3–5 years. Over this period, the one-off fee paid to Appco Australia equates to approximately 9%–30% of the total donation.
  • For every $1 a charity pays Appco Australia, they can expect to generate $3–$4 in return.
  • This is why charities continue to use this method of fundraising.

 

Appco Australia CEO video statement

Appco Australia’s response to the Sunday Night report

 

Media enquiries: Michael Smith 0411 055 306

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