- 54 - mailings extensively with most of its other clients. Before they formed W&H, both Watson and Hughey had experience with the use of sweepstakes contests on behalf of either their employers or their clients. As part of its initial program of prospect mailings for petitioner, W&H tested various packages. A “check” package performed best and became petitioner’s “control” package--a package that is mailed until a later package can net more money. In November 1984 a sweepstakes (sweeps) package was tested and also performed well. As Watson put it in an October 15, 1985, memorandum to several of petitioner’s directors and its executive director, “At this point UCC had two control packages, the check package which could be mailed to the traditional donor market; and a sweepstakes offer which could be mailed to markets that respond to sweepstakes.” A January 1985 major prospect mailing was planned using the check package. However, although the package had been approved by petitioner, petitioner’s board of directors then urged that the check package be replaced by a different package. That different package then lost $110,000.14 14 The record reflects that petitioner’s directors directed the check package not be used, because they believed certain representations contained in the package were inaccurate. Recipients of the package were informed that if they made a contribution, petitioner then essentially would receive a matching donation from another party. In actuality, at the time the solicitation was made, petitioner had not yet secured a (continued...)Page: Previous 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Next
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