Fundraising costs in spotlight again

The cost of fundraising is in the spotlight again, with figures showing that charities associated with the hit TV show Dancing with the Stars received just 60 percent of the money pledged.

A total of $718,910 was raised from text and 0900 voting but only $433,053 was passed on to the chosen charities, according to figures released by TVNZ to the Sunday Star-Times under the Official Information Act.

The remaining $285,857 went into the coffers of the phone and vote tally companies, with TVNZ saying it received none of the money.

Last week, KidsCan hit the headlines when it was claimed the charity spent less than 20 percent of the money it raised last year on its programmes for disadvantaged children.

The DWTS figures surprised Fundraising Institute of New Zealand chief executive James Austin, who said the costs should be more transparent.

"I knew there would be a cost because the texting is quite a costly exercise. There's a middle organisation, which administers it and takes a fee, but at FINZ we would have expected those costs to be transparent and up front, and (for organisers to) let us know about it before they do the texting," he told the newspaper.

The highest amount raised was by the winner, TVNZ weather presenter Tamati Coffey, at $428,136. However, his nominated charity, Rainbow Youth, last week received just $259,990. More than $168,000 went to the phone and vote-tally companies.

The charity of beaten finalist Barbara Kendall -- Upside Downs Education Trust -- received $99,009. Trust chairwoman Melanie Watson was surprised that an additional $65,000 disappeared on costs, an amount she said could have funded 10 years of speech therapy for two Down syndrome children.

The money the charities didn't get went to Telecom, Vodafone and vote-tallying company Lateral Profiles.

Vodafone and Telecom both said they charged a discounted 25 cents a text for DWTS.

Lateral Profiles managing director Roger Grice said he could not comment because his company was in a commercial partnership with TVNZ, Telecom and Vodafone.

TVNZ spokeswoman Megan Richards said the show was not about charity. "TVNZ is not a charity and Dancing with the Stars is not a fundraising mechanism."

She said the public was voting primarily to have a say in who won, rather than to support a preferred charity, and that the companies involved in the voting were entitled to their costs.