MEDIA RELEASE: Appco Australia CEO responds to Sunday Night

Monday, June 26th, 2017

Posted at 2:18 pm

In a statement to Channel Seven’s Sunday Night program ahead of their broadcast on 25/06, Appco Australia CEO wrote:

“Appco Australia understands that people will be concerned by Sunday Night’s report last weekend (18/06), and we are looking at how we can give people clearer information and even more transparency around how we are paid for the services we provide.

“However, we are incredibly disappointed by Sunday Night’s one-sided report, which has provided an inaccurate view of professional fundraising and, as a result, has affected charities’ ability to raise the funds they need to deliver their programs. This was irresponsible and unnecessary.

“Whether a charity advertises via Appco Australia or any other method or medium, they pay for that service. And, in fact, the fundraising service we provide is much more cost effective for charities than these other forms of advertising.

“It is absolutely correct that the charity receives 100% of a person’s ongoing donation direct into its bank account via monthly direct debits. This has been confirmed by the charities in question on their websites and is also governed by state regulations on fundraising.

“The charity pays Appco Australia a one-off, upfront fee per donor. This fee comes from the charity’s marketing budget, which also includes all other fundraising and advertising activities. We are paid by charities in the same way they pay other suppliers to advertise, such as newspapers and TV and radio stations. It is never taken from the donations, as a percentage or otherwise.

“We are required to present our 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, but this is not how Appco Australia is paid. Appco Australia accepts that this regulation creates confusion.

“The reality is, donors give for an average of 3-5 years. Charities and the sector regulators have confirmed this. Over this period, the return for charities is high after paying the one-off fee. They wouldn’t use this method if this wasn’t the case.

“Your report failed to consider this and to present the facts in a reasonable and balanced way. That is hugely disappointing for us, damaging for charities and misleading for the public.

“Above all, Appco Australia hopes that Sunday Night’s report does not discourage people from continuing to support Australian charities and the incredible work they do.”

Perveen Virdee,

CEO – Appco Australia

Watch Perveen Virdee’s video statement.

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