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of our total expenses (General Fund and Donor Development
Fund), would be allocated to Supporting Services.
Obviously, we cannot afford such a devastating report at the
end of 1988, and must correct any deficiencies in the direct
mail program immediately.
During 1984 through 1989, petitioner was well aware of the
guidelines CBBB and NCIB established for members of the general
public to use in evaluating charitable organizations that
solicited contributions. Petitioner planned and endeavored to
meet eventually all of the CBBB and NCIB guidelines, as
petitioner believed that doing so would enable it to gain more
support from corporations, foundations, and the general public.
Although petitioner, during 1984 through 1989, was never
able to meet all of the CBBB and NCIB guidelines, petitioner
concluded that it was in its interest to allocate as much of the
direct mail campaign’s expenses to public education as possible.
All of the mailing packages petitioner utilized during 1984
through 1989 contained some educational material. A list of the
“Nine Warning Signals of Cancer” was included with almost all the
housefile and prospect letters petitioner mailed. As its mailing
campaign progressed, petitioner tried to increase the educational
content of its mailings.
Petitioner’s 1986 financial statements, published as part of
petitioner’s Annual Report for 1986, contain the following
explanation of petitioner’s allocations of its 1985 and 1986
mailing campaign “joint expenses” between public education and
fundraising:
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