Georgia Charity Defends that it Spends 87% of money Raised on Fundraising

June 13, 2011; Source: WSBTV | The Committee for Missing Children, in Lawrenceville, Ga., is being scrutinized for raising $2.1 million last year while only spending $314,000 on its programs. Additionally, because it spent $1.9 million paying telemarketers, it actually ran a deficit of more than $100,000.

David Thelen who runs the organization admits that it all looks bad “on paper” but says the organization has brought home 1,200 children over the years and he can’t think of any other way to raise the money. He says it bothers him but he's losing no sleep.

Charity Navigator has given the organization no stars (not that we always ascribe to their ratings by a long shot). We have a feeling this is not the last we will hear about this situation. As we have reported previously, it is this kind of set up that is driving some states towards capping the fundraising costs of nonprofits.—Ruth McCambridge