The Rural Fire Service Association has paid more than half the money it raised to a commercial telemarketer accused of unethical sales tactics.
A not-for-profit charitable organisation supposed to support the state’s volunteer firefighters has spent only 16 per cent of the $69 million raised since 2014 directly on Rural Fire Service members, with more than half being paid to a commercial telemarketer who faces allegations of unethical sales tactics.Sydney Morning Herald
But analysis of financial documents submitted by the RFSA to the ACNC over the preceding nine years reveals that only 16 per cent of the $68.6 million in revenue generated through fundraising by the not-for-profit has been spent on these programs. More than $52 million – representing more than 75 per cent of the $69 million received by the RFSA in charitable donations – has been spent on payments to the for-profit telemarketer and administration costs over the nine years.By comparison, more than 80 per cent of World Vision’s total funds go towards field program and advocacy work, with 9.3 per cent spent on “admin and accountability”, according to the company’s website.
Asked whether it was unusual for a charity to spend around three-quarters of revenue from donations on administration costs, Monash University Professor Ralph Kober said: “That’s definitely not the norm.” This is despite consistent and repeated calls from volunteer firefighters for gear upgrades. During the catastrophic Black Summer blazes, RFS members tried to use social media to crowdfund for face masks because of supply shortfalls.
“The RFS can advocate for particular projects or items on behalf of its members, but does not have influence on RFSA fundraising activities or the distribution of its funds.”It is not the first time the RSFA’s lack of spending on frontline volunteers has come under the spotlight. The organisation faced heat in 2016 after being pinned for spending 58¢ in every dollar donated with the telemarketer Contact Centres Australia.
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