The Montreal SPCA says they’re deep in debt to a direct mail company paid to help them raise donations.
According to a segment shown last night on AC360 with Anderson Cooper, the SPCA organization signed a 7-year contract with Quadriga Art who began sending fundraising mailers across Canada. While the fundraising expenses increased, millions in donation money went back to the direct mailer.
Nicholas Gilman, Executive Director at the Montreal SPCA, told CNN reporter Drew Griffin that they once owed $4 million to Quadriga and have managed to bring their debt to $1.7 million. Quadriga Art now has a lien on the shelter, though. Gilman says it was a poor decision to sign with the company, but they are now locked into their contract.
Quadriga Art’s website says that they “offer nonprofit organizations, fundraising agencies and commercial brands innovative direct marketing campaign solutions that produce extraordinary results.” However, CNN reports that the same company has been paid millions by veterans charities as well, which are paying more than the donations they’re receiving. The Disabled Veterans National Foundation, for example, received around $56 million in donations in the last three years but have paid Quadriga Art over $60 million in fees.
While Quadriga Art has denied requests for interviews or comments, a spokesperson did tell CNN “This has been a proven model for 50 years, despite being criticized by charity watch groups.”