One-third of funds from 'charity' magazine used for philanthropy
The expression charity begins at home takes on a whole new meaning as it emerges that an aid organisation pockets close to two thirds of the sum paid for a magazine sold to raise funds for cancer.
Helping Hands - The Family Magazine is sold for €3.50 by roving sales representatives who try to sell the publication in commercial areas, busy streets or by knocking on households' doors.
They start by offering the magazine as a way to help the charity involved - a recent cause was a Breast Cancer Awareness campaign for the Health Department, in which some €10,000 were raised. The sales persons carry a tag showing they are acting on behalf of Helping Hands Foundation, a trading name for 03 Ltd, which is not a charity.
The sales representatives explain the cause of the day and how it affects the individual before asking the person to help out by buying the magazine.
What is not said, however, is that out of the €3.50 one pays, only €1.05 goes towards the campaign with the rest of the money covering the costs of the sales representative, printing and company expenses.
When contacted, Reuben Vella, the man behind the company, denied being misleading.
"Clients understand that production costs are involved," Mr Vella said. "No one does anything for free". He insisted that "100 per cent of profits go for charity", the rest being broken down as expenses.
Francesca Cutajar, 24, was one of those who bought the magazine after being approached by a sales rep in City Gate, Valletta. She never actually questioned how much of the money would be going to charity but when asked she assumed that "at least €3 from the €3.50 would go to charity" with the 50c going towards printing costs.
Mr Vella insists he had an honest deal. "Some clients ask us if all money goes to charity and we always answer that not all money goes to charity because there are production costs involved," Mr Vella said, adding it was then up to customers to buy it or not.
The quality of the magazine itself was, in Mr Vella's words, "amateur" and it was in their interest to keep it that way because it was a family magazine.
According to industry estimates, a run of 3,500 copies would cost 37c per magazine and a bigger run of 10,000 would bring the cost down to 23c per copy. This leaves at least €2.08, which eventually get split up between the salesman and the company.
Helping hands also has a competitor - OC magazine - started by a former Helping Hands salesman. It follows the same business model as Helping Hands and, when asked, sales representatives declared they received about €1 per magazine sold, with about a third of the €3.50 going to charity.
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A Vella
Jul 21st 2010, 07:08
Maybe the journalist should do his homework a little better, as according to this article the whole Helping Hands is just 4 things: (1)Charity, (2)Sales persons, (3)printing and (4)Reuben Vella....i am sure there is more to it than these 4 things - any normal person should be able to see this.
A. Zammit
Jul 21st 2010, 07:04
Seems that David Schembri is opening a can of worms.....charity collecting is a very sensitive issue, where it is never the case where the charity makes all the money collected....Telephone bills, TV air time, renting of equipment, expences, wages, event promoting....this is no new revelation to anyone in Malta. everyone must be paid for their service or product....but it seems David Schembri wants everyone to work for free. Helping Hands seems to be a fund raising company where they demand payment for their service...just like this journalist involved demands his monthly wage.
t.bonello
Jul 20th 2010, 16:25
mr david schembri
ahjar minflok toqod taqbad man nies tara ezat min et jisraq il flus tal poplu....il helping hands jatu il flus li 'charity' kollha...ha tik ezampju ada kif adit ohloq tbisima,inthom tahsbu li il flus kollha sejrin al hemm naqas lispejes,dawl etc...in nies iridu jifthu mohhom ax kul gabra ma jatux il flus kollha iridu inaqsu lispejes.mr ruben vella xoghol tajjeb et jamel bis sahha tijaw et nejnu hafna nies fil bzon !!!!
K. Vella
Jul 20th 2010, 09:32
This is the kind of journalism we desperately lack in Malta. Well done!
g. borg
Jul 19th 2010, 23:01
Why didn't they use advertising and sponsorship to pay for printing costs? Everyone knows that nearly all mags are funded mostly by that and not from earnings from sales.
Agree with what people are saying about it being amateurish, it is - very poor quality and not worth 3.50. I donate once a year to a arge charity which I know how it spends its donations and what it does. People would be better off doing that than donating to all these silly little charities.
joseph cutajar
Jul 19th 2010, 22:49
The sales persons only get Eur0.75c commision from evrey book so in my opinion its really small money for the work they do facing lots of people every day but the company much different story they earn at least 1.75 from each book so the shame is on the company of taking advantege from these charities that cant refute any income to keep on going
Philip Grech
Jul 19th 2010, 20:02
One other thing I would like to comment about is that the sales persons are doing it for the money. Of course. What do we expect; youngsters just out of school spending their pocket money in order to sell books without getting paid. I usually meet these people along Republic Street; I dare anyone to give me one example of somebody doing work for free along this street.
Philip Grech
Jul 19th 2010, 19:52
I did not bother to read all the comments, however I will tell you what I know. When my daughter tried her hand as a salesperson, she had to catch two buses to the office, and there she was told of the area to cover, usually taking another two buses. When she finished it was another two buses to return home. So a total cost of nearly three Euro daily. sometimes she sold one, two, and once five books. more often she did not sell anything. All she got was one Euro per book. So if there is any fault in all this matter, it surely is not the salepersons. Needless to say her career did not last very long.
Allan Gatt
Jul 19th 2010, 18:34
"The quality of the magazine itself was, in Mr Vella's words, "amateur" and it was in their interest to keep it that way because it was a family magazine."
Fl-ahhar, kumment sura. Prosit lis-Sur Schembri.
Joe Fenech
Jul 19th 2010, 16:23
Read:
'War games : The Story Of Aid and War in Modern Time' by Linda Polman
Review:
http://www.guardian.co.uk/books/2010/may/08/war-games-linda-polman-review
Neil Dent
Jul 19th 2010, 15:33
Quite a revelation although not too surprising. Most have surely experienced these vendors on various occasions, and their pushy attitude clearly tells us that they're only in it for the money, and not just acting out of the goodness of their heart. One young guy even went so far as to rudely knock on my car windscreen and give me his sales pitch while I was waiting outside a shop on the Gzira front! He did NOT make the sale that day!
Many comments here have got it right:
1) The mag is of very poor content and quality - not worth anything like €3.50.
2) Charitable donation is a very personal and private matter. Being hassled into buying this particular rag detracts from that, and makes the act of 'giving' a much less fulfilling experience.
3) Should we wish to donate - then we should do so directly, to ensure that the chosen beneficiary gets the maximum benefit, whatever the amount.
antonia grima
Jul 19th 2010, 15:25
I have to say that once the salespersons approaches you they keep walking after you even if you say that you do not want to buy one and some of them even get angry.. If you ask them how much is going for charity, they say that all. Then when you keep talking to them they say that they are paid...so why first they say that all the money is for charity?....Sometimes you see people give them money and say that they do not want the book....I ask do they give this money to charity?..OR THEY KEEP IT...also some people say to them keep the change because it is for charity.....where does that money go?........sorry i never by those books....I give to whom I believe they really need money and give it in person direct...
Edric Micallef Figallo
Jul 19th 2010, 15:11
Thanks a lot for this bit of investigative journalism. I've bought this and similar magazines several times, often after being emotionally blackmailed by these representatives (let's face it, that's what happens, they make you feel bad). After this, there's no chance I'm buying such material any longer. To add insult to injury the people that sell this stuff are actually paid out to do it, thus not voluntary workers! Next time I'm approached they're getting my 2 cents.
I believe it stupid to produce such a magazine and sell it at that price for charity. There's loads of costs in producing a magazine and it would have been better had they just collected money (like €2) rather than giving out a magazine which occupies space, is unappealing if not crappy ("amateur" sounds like a politically correct term here, and let us not assume that families want it that way), which for most of the time is not read at all, and which becomes trash in a short space of time (uncharitable towards the environment).
By the way, they must do it voluntarily. Being paid to do charity work is preposterous, at least unless the public is informed.
Tanja Cilia
Jul 19th 2010, 15:09
When I offered to donate my work, they asked me how much I was asking for it. I explained my understanding of the word "donation" - which apparently differs from theirs, and it was subsequently accepted - but never utilised. The address was a Hamrun one.
Maria Stivala
Jul 19th 2010, 14:55
Prosit David Schembri, great article. I am appalled for the simple reason that they should have the decency of selling it as a consumer good and not "charity"...sublimely misleading.
Maria Zammit
Jul 19th 2010, 13:54
Thanks, Times of Malta for informing us about this matter. I for one, bought several issues thinking that the whole amount would go to charity!!! Next time when I wish to donate to charity I'll just write and mail a cheque and please whoever you are who approaches me trying to sell this book, don't unless you wish to be snubbed!
I would also like to know how much of the money donated during Strina Campaign and all Campaigns involving contributions through phone calls and/or smses, actually go to charity? Such details are never divulged during the actual campaign and I for one have no faith that all the money actually goes to charity!!!
Lisa Schembri
Jul 19th 2010, 13:36
This is something I already knew but a lot of people still believe that the full value of the magazine goes to charity...Those magazine pushers are annoying, rude and I have been boycotting anyone holding a clipboard and a forced smile for several years now. Its not because I don't want to help the poor, disabled or ill because I more than gladly would-- but selling a boring and uninteresting magazine full of adverts and bad recipes is not the best way to encourage people to help charities, not to mention its a WASTE OF PAPER.
The job should be voluntary and they should just setup a stand with information about what the money is being raised for, information or awareness about the illness (if relevant) and how you could sponser a child/adult in need. Chance to meet the person(s) you are helping and how you could make their existance a more enjoyable one. I certainly wouldn't mind helping people in need--giving a few hours of my time without the need of PROFIT or a USELESS magazine.
Joseph Schembri
Jul 19th 2010, 12:42
I thought this was a fairly well known issue. Considering I had once been duped by this level of dishonesty I always ask if the seller is representing the Helping Hands organization. I never ever give them any money any more. If I wish to be charitable I will hand the money directly to the organization in need ...
J oatmon
Jul 19th 2010, 12:21
Some of these 'charity organisations' have been exposed as scams, in the UK etc.
Basically they pay themselves a whopping salaryand have their whole family on the books as working for the 'charity', and then they can add on large expenses (which no one can audit), and then what's left they 'graciously' donate to a charity - again no one knows what percentage this is, as their accounts are not independently audited.
So it is just a well paid business which cons the public, and may decide to give some money to charity.
I would not give to any 'lesser known charity' myself, as almost all are some sort of ripoff by those involved - don't be a mug by financing someone else's lavish lifestyle, and thinking you are making a difference.
Louis Schembri
Jul 19th 2010, 12:11
Rather than condemning Helping Hands for giving only one-third of the proceeds to charity, it would perhaps be more apt to keep in mind that in recent years they have contributed over €600,000 to various charitable organisations. Ask any of these many benefactors if they regret participating in the Helping Hands fund-raising scheme and each one will tell you that their participation was a blessing.
Vince DeBono
Jul 19th 2010, 17:34
Going by the calculations being bandied about, the Company therefore made between €600,000 to €1,200,000
Louis Schembri
Jul 19th 2010, 18:00
@ Vince Debono
The amount of €600,000 plus was donated to charities over a number of years. Naturally to generate this amount required a lot of work and effort and employing a substantial number of young persons. So making the amount of money you mention over a number of years is not such a big deal after all.
Joseph Attard
Jul 19th 2010, 12:01
First of all, since these books are not sold for charity, a VAT receipt has to be given to the clients... I wonder if the representatives of 03Ltd [previosly known as Rhino Power] gives these receipts to their clients... At least, when i have made the mistake and bought the book, I wasn't given a receipt for sure!!! But, one has to point out, that first and foremost the representatives has to be given the receipts from the management, so that they can give the receipts to their clients!
Secondly, when the books were sold in the Maltese Lira, it costs Lm1.50, of which only 30c will go to the sales persons.... I wonder how much of the remaining money would really go to Charity!! And here I ask a question - Are there any transperancy measures that makes sure to see how much money really goes to charity from the real total amount of profits that this company makes!!
Clients should not be cheated!!! they have to be told immediatly that not the whole amount of money goes to chairty...
Don't let others gain from someones misfortune!!!
RMangion
Jul 19th 2010, 12:01
if you want to give money to charity go and give it directly to them. I personally never gave a cent to these "charity" sales persons who mock and mock and mock in Valletta.
Jan Chircop
Jul 19th 2010, 11:57
Could anyone publish the same stats for the community chest fund?
What percentage goes to whom and how much are the salaried employees getting out of it?
Paul Fenech
Jul 19th 2010, 11:52
Veru sirna pajjiz ta tallaba, ma tistax tidhol sal Belt li ma issibx lill dawn tal kotba kull erba passi. Jew inkella kulhadd irridek taqleb ma tal vodafone jew go jew ping jew one jew ma nafx xiex.
Imbghad rigward gbir mit T V kull gimgha xi kampanja. Nahseb issa il poplu hemm bzonn li jghid bizejjed ghax dejjaqtu lill kulhadd.
Qabel hlief RING US UP FIL MILIED FUQ IR REDIFUSSION MA KIENX IKUN HAWN.
Charity begins at home.
Ma Borg
Jul 19th 2010, 11:32
this is misleading 'advertising'. Action shall be taken by the Police agianst such companies, since the man in the street gets the impression that he is 'donating' €3.50 for charity. It happened to me also and it's not the first time that i gave all the small change remaining in my pocket, always beleiving that these went for charity. Charity my foot.....it's a big business.....thanks 'The Times' !!
Joe Attard
Jul 19th 2010, 11:19
First of all, as this is a commercial matter, they are supposed to give recepts to clients, and I doubt how many of these representatives give this receipts... first of all the recept has to be given to them by the management of Helping hands!!!
Secondly, when egver the representatives came on my or my friends, we were never told that not all the money goes to charity... this has to be soemthing that has to be told first and foremost...
And are there any transparancy matters that one can really see how much of the money gained from these books really goes for charity.... According to the information I have, when the books were in maltese lira, they've costs Lm1.50, of which 30c goes to the representatives.... And how much of the remaining money really goes to charity????
Dylan Olliver
Jul 19th 2010, 11:09
I thought there was something strange about the way the people who sell these magazines are so insistent. Now I know the reason. I appeal to those who want to give charity to send it directly to the charitable institution and not through third parties.
Vince DeBono
Jul 19th 2010, 10:53
Printing Costs could be 37 cents, but how much is re-couped in advertising?
Daniel Azzopardi
Jul 19th 2010, 10:51
When asked I always bought without askng anything, but that was last
Christian Psaila
Jul 19th 2010, 10:42
So it would be better to just give donations straight to the charities in question instead of buying an 'amateur' magazine. That would guarantee 100% of the proceeds go to the charities.
G Psaila
Jul 19th 2010, 10:42
They have a way of making you feel guilty when you refuse to buy the magazine, it happened to me more than once. Never again. Besides, the quality of the magazine is mediocre, to say the least.
victor pulis
Jul 19th 2010, 10:42
The first time this magazine appeared on the streets a salegirl rang my door bell and I bought one magazine. Some time later the same girl called again and tried to sell me 'the last two' telling me that it was all for a good cause. Of course I refused but she continued pestering me and I had to close the door in her face. Now I regret buying even the one copy.
C.Sammut
Jul 19th 2010, 10:29
Its about time such information about all philantropic events, ngos and collections, starts to surface.
Joseph N Attard
Jul 19th 2010, 10:28
The law should come down hard on these people. If they are acting within its present boundaries, it should be amended forthwith. All collectors for charities should be bound to reveal to donors _before collection_what percent is going for charity, and what percent is for such things as 'administrative costs'. In the present case, the Inland revenue should also ask for a breakdown of the alleged costs, to check whether it is getting its dues.
M. Vella
Jul 19th 2010, 10:17
In this day and age does one expect that things are done for free????????
Get real!
Ian Pace
Jul 20th 2010, 09:33
@ M. Vella and Reuben Vella: Maybe you do not do anything for free but there are nice people out there that find no objection indoing so. So speak for yourself. Il-flus ma jaghmux lil kulhadd kif hafna jahsbu.
G.Pisani
Jul 19th 2010, 10:16
I was disgusted once at a sales rep of this mag when I was in a small shop queuing to pay once and this guy just jumps the queue telling everyone he will take just a moment and tells the salesperson about the magazine, the salesperson was not interested and the guy's reply (with a louder voice so the customers waiting would hear) was, so you do not want to help someone in need for just 3.50euros?
Eventually the salesperson(probably earning 3.50 an hour) had to pay for the mag. I was disgusted.
Stephen Koludrovic
Jul 19th 2010, 10:15
Maybe the heading of the article should be
Only one third of funds are used for philanthropy.
Just my thoughts of what I think of some charitable schemes.
Paul Barrett
Jul 19th 2010, 10:14
The overheads of charity can be quite alarming. A senior management friend of mine did a cost appreciation of an annual charity bring and buy event organised by a big firm in the UK. In the end, he concluded that taking all costs (staff wages, transport, venue, publicity etc) of the event into consideration, it would overall be a better financial deal if for every £1000 normally raised by the event if the firm put the equivalent £1000 in £5 notes in envelopes and sold them at a street corner for £1 each.
Chris Grech
Jul 19th 2010, 10:13
i always questioned on such matter.
who wants to donate something - do it directly to charity !
and they will get the full ammount!
Andrew Borg-Cardona
Jul 19th 2010, 10:13
This is why a polite, but firm, "don't waste my time" is the right answer to these people.
J.Vella
Jul 19th 2010, 09:56
Very well done to times of Malta for highlighting this issue !!!