ASAE signs on to amicus brief in telemarketing case. (Headlines).

ASAE recently signed on to an amicus brief filed by Independent Sector, Washington, D.C., on a case involving for-profit telemarketing companies soliciting money for charities. The U.S. Supreme Court has agreed to hear the First Amendment case. ASAE joined about 50 co-signers who support the argument that increasing access to information pertaining to charities through private and public initiatives, coupled with enforcing current laws that categorically prohibit fraud, is the most responsive way to protect potential donors from disingenuous groups.

Precedent provides that speech cannot be compelled and therefore non-profits or their telemarketing companies do not have to disclose fundraising expenses unless the caller asks them to do so. The case originated when Illinois and 18 other states brought suit against the for-profit telemarketing company Telemarketing Associates, which was soliciting funds for a charity. Those being solicited were not told that the for-profit company kept 85 percent of the funds collected for administrative expenses and profit. The states asked the court to allow telemarketers to be sued for fraud if they do not include this type of information in solicitations. The Illinois Supreme Court sided with Telemarketing Associates.

For a copy of the brief, visit www.independentsector.org.