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From 1963 until 1984, petitioner acted as a support
organization for its “affiliate member agencies”. It published a
quarterly newsletter, offered access to cancer educational
materials, and held an annual meeting of its membership each
fall. Petitioner was an umbrella organization, coordinating its
affiliate member agencies which met the direct needs of cancer
patients through the providing of medical supplies, cancer
research, and public education about cancer prevention,
detection, and treatment. Petitioner was supported primarily by
the membership dues paid by its affiliate member agencies.
Petitioner also received contributions in small amounts as a
result of direct solicitations of individuals who were members of
petitioner’s board of directors or of the boards of directors of
petitioner’s affiliate member agencies. Until 1984, petitioner’s
annual budget never exceeded $50,000.
In 1983, some affiliate member agencies indicated they
intended to withdraw from petitioner. This precipitated a budget
crisis for petitioner. Its board of directors realized that
petitioner might have to be dissolved unless other sources of
funding could be secured for petitioner. The board directed
petitioner’s executive director to conduct a search for a
professional fundraiser that could assist petitioner in
conducting fundraising to meet its increased need for funds,
without the necessity of petitioner’s contributing initial
capital for the fundraising effort.
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