DIRECT MAIL SOLICITATIONS ARE FLEECING OUR ELDERLY

For those looking for a non-partisan cause to get behind, there is an underreported tragedy in this country that must to be discussed, exposed and regulated.  Our most vulnerable senior citizens are being fleeced by solicitors and advertisers out of billions of dollars.  It is a scam which many younger Americans may not have considered, unless they are involved in the day to day financial affairs of an older adult.

My initiation into this sleazy world of greed and deception began when my family received a power of attorney from a ninety something family member to assume responsibility for the mail and check writing.  In going through the stack of daily junk mail, I noticed that almost all of it was directed to our charge by a variety of political, religious, education, and disaster organizations, all seeking a contribution.

A review of our relative’s finances disclosed a long list of repeat contributions, going back years.  One payment would trigger many more solicitations, all sent with the obvious intent of causing the recipient to feel guilty if a contribution were not made.  Letters would contain small amounts of money or a negotiable check, urging a contribution. Other large envelopes arrived with pot holders, dish clothes, address labels, calendars and tee shirts.

One solicitation regularly comes in a large white envelope with the words: “Loyal Supporter” above the address.  On the front in large letters that look like they were written by a child is the word “please”.  On the back is written “help.”  Inside were pot holders and a note tablet. A quick check on the charity at Give.Org revealed that less than 5% of their collections make it to the children they are allegedly helping.

How pervasive is this problem?  A study performed by True Link Research in 2015 found that seniors lose $36.48 billion each year to elder financial abuse.  The highest proportion of these loses, 17 billion, come from deceptive but technically legal tactics, designed specifically to take advantage of older Americans. Two devastating findings from the study were: (1) Small loses in earlier years cascade into large loses as time goes on. Those who first lost small amounts to financial exploitation went on to lose an average of $2,000.00 over the next five years; (2) There are an estimated 954,000 seniors who skip meals as the result of financial abuse.

It is not difficult to determine why these deceptive practices are so widespread. Annul solicitations that are successful quickly morph into quarterly and then monthly mailings. Our elders forget they have already contributed and feel obligated to respond to free stuff, with another check. For those older Americans who live alone, the daily mail call becomes a highlight of the day and each solicitation provides an emotional lift when a check is mailed to help the less fortunate. Clearly, charities and political organizations have learned how to exploit these traits, unique to the elderly.

This commentary does not directly address telemarketing, info commercials, shopping networks and television advertising, each of which take advantage of the elderly using their own well tested delivery systems. Each of us is familiar with an older person who has purchased a closet full of items on the home shopping network to distribute to family members.  Or an elderly relative insisting on Prevagen for memory lose or Enbrel for arthritis, after being bombarded with medical commercials.  Similar tactics and marketing philosophy are common to all advertisers targeting the elderly and the deceptions are as injurious to our elders as direct mailing.

In regard to mail solicitations, what is to be done? First, charitable and political solicitations must be regulated in a fashion to deter abuse. Increasing the frequency of mailings based on a contribution should be limited or prohibited. Multiple mailings from the same source should state the date and amount of prior contributions in bold print. Solicitors should be required to flag frequent or unusual giving patterns and to report them to a third party Agency for the Elderly, for investigation.  A toll free number of a reputable consumer agency should be included with each solicitation, along with clear instructions for the recipient to call and check on the rating of each charity.

Second, each of us with older relatives and friends must make a point to do a financial review of contributions, particularly for those who are living alone on fixed budgets.  While this task may appear to the older person as an invasion of their independence and privacy, contributions can be approached in a positive way.  This would include an explanation of how charities work, why some are better than others and with preparation and review of a budget to show the giver why other obligations are more important than a particular charity or political organization.

For those elderly friends and relatives who have IRA accounts and must make required minimum distributions under the tax code, an excellent solution presents itself.  In 2018 tax deductions for charitable contributions are no longer available for many older adults who do not itemize under the new tax law. However, the law permits IRA accounts to be used to set up Qualified Charitable Distributions. This allows the elderly to “do good” while at the same time reducing taxes.

 This approach of once a year charitable planning (which can be done without access to IRA accounts) permits the older adult to choose the charities in advance he or she wants to benefit, within budget, so that no further contributions are necessary.  The rest of the direct mail “vultures” should be notified to cease and desist their solicitations, with notice also given to the state consumer protection agency.  Over time the stacks of unwanted solicitations will disappear.

To those who argue “it is their money and they should be left to spend it as they wish” I would argue that rational independent discretion decreases as we age, opening the door to fraud and abuse. Moreover, the solicitation techniques are designed to pray on older individuals and are difficult to resist.   Only reasonable regulation and concerned friends and family can put a stop to this fleecing of the elderly.