United Cancer Council, Inc. - Page 37

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          that not more than 30 percent of the contributions, grants, and             
          bequests a charitable organization receives should be spent on              
          fundraising.  NCIB suggests that, where more than 30 percent was            
          spent on fundraising, then the prospective contributor should               
          further analyze the charitable organization’s operations and ask            
          the charitable organization for an explanation regarding the                
          percentage of proceeds spent in fundraising.  In particular,                
          NCIB’s contributor’s checklist pamphlet states as follows:                  
               Some fund-raising practices are always expensive--                     
               acquisition of new donors through direct mail or                       
               telemarketing, for example--and yet they may be the                    
               only methods available to an organization if it hopes                  
               to reach the general public.  Some charities which rely                
               heavily on bequests will have fundraising costs that                   
               vary considerably from year to year.  New                              
               organizations, organizations with causes that are                      
               little known or controversial, organizations with a                    
               contributor base made up of many smaller contributions                 
               rather than a few large grants--are all likely to have                 
               relatively high fund-raising costs, and yet they may be                
               quite well managed.                                                    
                                      W&H; AICR                                       
              W&H began business in late 1981 as a two-person partnership            
          owned 50 percent each by Jerry Carroll Watson (hereinafter                  
          sometimes referred to as Watson) and Byron Chatworth Hughey                 
          (hereinafter sometimes referred to as Hughey).  As of the time of           
          the trial in the instant case, Watson and Hughey have been W&H’s            
          only two partners.  Before forming W&H, Hughey was employed at              
          the Viguerie Company from 1978 to 1981.  From 1983 through the              
          time of the trial in the instant case, W&H maintained its offices           
          in the Washington, D.C., area, in Alexandria, Virginia.  (In July           




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