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would improve relations with petitioner’s board of directors and
increase the likelihood that the Contract would be renewed.
As a result of the addendum provision regarding monthly
draws, petitioner received an unqualified opinion for 1986. That
is, the certified public accounting firm’s report no longer
included qualifications or reservations about petitioner’s
practices or potential liabilities.
Direct Mail Fundraising Campaign: 1984-1989
A. In General
From June 1984 through May 1989, W&H conducted a nationwide
direct mail fundraising campaign for petitioner. Mailings were
eventually sent throughout all 50 States. However, petitioner
directed W&H not to make mailings to areas serviced by certain of
petitioner’s member agencies, as those member agencies received
annual funding from the United Way campaign and a condition of
their receipt of such funding was that they not be involved in
competing fundraising efforts.
W&H created and developed direct mail fundraising packages
with petitioner’s assistance and input. Before each direct mail
package was mailed, petitioner received from W&H all materials to
be included in the package, as well as the names of all mailing
lists to which W&H proposed to send the package and the estimated
numbers of names from each mailing list to be used in the
mailing. Petitioner, through its staff and a committee of its
board, reviewed and revised the package and the mailing list and
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