United Cancer Council, Inc. - Page 76

                                       - 60 -                                         
                    Non-Sweepstakes Mailings      279,084                             
               Miscellaneous                         75,203                           
                    Total                         1,164,698                           

          F. Adverse Publicity                                                        
               As a result of its direct mail fundraising campaign and its            
          association with W&H, petitioner received adverse publicity.                
          This adverse publicity began in or about November 1984 and                  
          persisted through the term of the Contract.                                 
               In late 1984, some of petitioner’s directors and staff began           
          receiving complaints and inquiries about the direct mail                    
          fundraising campaign petitioner was conducting.  Adverse                    
          newspaper articles concerning petitioner had been published.  The           
          negative press came from all parts of the country to which                  
          petitioner was mailing fund-raising letters.  The areas of                  
          concern raised in the complaints or inquiries included (1) W&H’s            
          control of another cancer charity, AICR, (2) the mailing packages           
          petitioner employed, (3) the adverse impact of mailings done in             
          certain areas covered by petitioner’s member agencies, and (4)              
          whether petitioner was spending a sufficient portion of its                 
          receipts for charitable purposes, as distinguished from spending            
          for fundraising and administration.                                         
               At petitioner’s board of directors meeting on November 17,             
          1985, the board members viewed and discussed a videotape of an              
          unfavorable Dayton, Ohio, television news story about                       
          petitioner’s direct-mail fundraising.  The news story focussed on           




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