The U.S. Supreme Court agreed yesterday to take a case that will decide whether telemarketers that keep a significant portion of donations solicited on behalf of charities can be pursued for fraud. A decision that could have far reaching implications for all fundraisers.
The case stems from a fraud action originally brought more than a decade ago by the state of Illinois against Telemarketing Associates Inc.
The telemarketer had an agreement to raise donations for VietNow, a charity for Vietnam veterans headquartered in Rockford, IL, that called for VietNow to get 15% of the donations while Telemarketing Associates would keep the remaining 85% for salaries, expenses and profit. During the period covered in the state
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