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Contract, W&H’s practice was to stop advancing funds to finance a
client’s direct mail fundraising campaign if the initial mailings
were unsuccessful and W&H concluded that reasonable prospects for
conducting a profitable mailing campaign did not exist. If W&H
decided to stop advancing funds, W&H then advised that client its
mailings would be curtailed, unless that client paid the expenses
of the further mailings that the client wanted to do. On the
other hand, if W&H concluded that strong prospects for conducting
a profitable mailing campaign existed, W&H then might
substantially increase its advancements of funds in order to
finance larger mailings for that client.
In this manner W&H effectively limited the risk that it had
apparently assumed in any no-risk fundraising contracts similar
to the Contract
C. Vendors Who Furnished Goods or Services
In the course of petitioner’s direct mail fundraising
campaign, goods and services were obtained from a number of
vendors. As indicated above, WIB was the escrow agent and
provided most of the caging services with respect to the return
mail received in response to petitioner’s mailings. Wiland
Associates (hereinafter sometimes referred to as Wiland) was
retained by W&H and performed the computer services required in
connection with the Contract.
Several other vendors at various times furnished goods or
services in connection with petitioner’s direct mail campaign.
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