"We can come up with theoretical ways of how the system can be changed, but I don't know in practice if it will ever happen. I suspect that it won't," she said.
Changing the system would require aligning for-profit interests with nonprofit values. The union between GCI and the charities is rife with double standards. The "good causes and candidates" — the people in the business of saving the children — seem to look the other way as GCI and its canvassers continue to give donors fuzzy financial information. At the same time, some employees complain that working conditions are less than ideal.
Joseph Schell
Charities like the ACLU hire for-profit fundraising company Grassroots Campaigns, Inc. to solicit San Francisco passersby for donations.
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When GCI was founded in December 2003, its founder and president Douglas Phelps was already at the helm of a host of nonprofits and commercial endeavors. Currently, he serves as the chairman of the board for U.S. PIRG, the federation of state Public Interest Research Groups — the first of which was founded by Ralph Nader in the 1970s. Since 1982, Phelps has been the chairman of U. S. PIRG's nonprofit fundraising arm, the Fund for the Public Interest, commonly known as the Fund. He also serves as president of the for-profit telemarketing and fundraising company Telefund, Inc., and trustee of mutual funds investment group Green Century Funds — as well as director of its administrative body, Green Century Capital Management. Green Century Funds is owned by several of the nonprofits and PIRGs.
The list of charities and tie-in organizations that Phelps and other GCI and Telefund executives run is exhaustive. Ten groups are listed as part of an informal umbrella group called the Public Interest Network. A bevy of other organizations also shares some of the leadership and provide aid to the groups within the network.
Owing to the organizations' interconnectedness, GCI has much in common with the Fund, even canvassing for many of the same nonprofits. Sociology professor and former canvasser Dana R. Fisher criticized the Fund in her 2006 book Activism, Inc.: How the Outsourcing of Grassroots Campaigns is Strangling Progressive Politics in America, in which the Fund was called "People's Project." Fisher blamed the progressive left's outsourcing of fundraising for treating young people like an expendable resource, and tainting their experience in public service.
In 2009, San Francisco law firm Rudy, Exelrod, Zieff & Lowe won a $2 million settlement on behalf of Fund employees who claimed they were not paid overtime. In December 2004, a year after GCI's formation and shortly after it began campaigning for the Democratic National Committee, a group of canvassers from Oregon claimed they had not been paid the state's minimum wage. They later received an undisclosed settlement. In 2008, San Bruno lawyer Rob Nelson won a class action suit in San Francisco on behalf of former GCI employees who claimed they too were not paid minimum wage or overtime. Though GCI argued that the plaintiffs were a special class of exempt employees, as it did in the Oregon case, the California employees received a $600,000 settlement. Another settlement from a 2009 case against GCI awaits finalization in San Francisco Superior Court.
Perhaps an episode in Chicago best highlights canvassers' uphill battle for answers and support from the charities and GCI. In 2008, Tim Pool came from the Fund to GCI to make more money by fundraising for the ACLU. Pool quickly became a star fundraiser. His star began to dim when he questioned whether he and his coworkers were being compensated correctly. His plight evoked the sympathy of a director at the office, who spoke to us but requested not to be named. We'll call her Justine.
Justine said that when she took Pool's frustrations to GCI headquarters, the national team was more concerned with why he was questioning the status quo. Unable to resolve the problem in-house, Justine accompanied Pool and two other employees to the ACLU of Illinois, hoping for guidance. According to Justine, what they got instead was free ACLU paraphernalia and a call informing them that the organization would have to recuse itself because of a conflict of interest.
After starting an effort to unionize, with the help of the National Labor Relations Board, Pool and two coworkers were fired.
Justine asserted the person who fired the three employees didn't know it was illegal. "The people I experienced who were directors at Grassroots Campaigns knew nothing about being a staff manager, nothing about HR or any of those things," she said. "It's a company that is wide open to these kind of lawsuits." The NLRB ultimately took Pool's case and won him back pay. Justine quit as soon as Barack Obama was elected president.
Engel, the ACLU's deputy director, said that if GCI was not in compliance with the law before, she has been assured it is a non-issue now. "They're always able to put our minds at rest that there's not a problem.... People get upset. It doesn't mean they were mistreated; it means they didn't have a good experience."
But the charities and the California Attorney General's office also say there simply isn't enough manpower to keep tabs on all fundraisers. Case in point: In what Jones called an "administrative oversight," GCI did not file the majority of its annual reports for 2006-2009 in California. Nor was the company notified of this by the Attorney General's office, until SF Weekly requested the documents.