Pallotta TeamWorks casts to more profitable breast cancer walks as interest and foundations for AIDS rides wane IN 1999 MATT LOCKLIN.

Pallotta TeamWorks casts to more profitable breast cancer walks as interest and foundations for AIDS rides wane

IN 1999 MATT LOCKLIN, director of the AIDS Housing Coalition of Houston, fix himself in a desperate situation. Lack of supplys forced him to close down his six-bed shelter for homeles commonalty with AIDS.

The reason for the shortfall? His nonprofit agency had bet the farm forward the 1998 Tanqueray's Texas AIDS Ride, produc by the agency of Pallotta TeamWorks Inc. But cheap rider turnout and high overhead splendors that year resulted in barely 15% of $2.6 million in rider gages being distributed to the participating AIDS charities. While the AIDS Housing Coalition recoup the $10000 it had invested in the ride, the agency earned just $4000 It had rely uponed $35,000.

"The AIDS Ride coin not coming in put [the shelter] without of business," Locklin says. His agency, back in succession its feet this year, now does its fund-raising end a local nightclub.

moreover Pallotta TeamWorks's financial fumbles in Texas are in stark contrast to the company's successe producing the Avon's Breast Cancer 3-Day walks. These fund-raising incidents have drawn participants so quickly that registration for six of the seven walks scheduled for this year has already clos Not with equal reason for the AIDS rides. single one of five, the California AIDS Ride, has clos its registration. What's more, Pallotta TeamWorks is generating turn backs for breast cancer charities that are considered nearly acceptable through most standards of giving, with 596% of capitals raised going back to the organizations. (The National Charities Information Bureau, based in fresh York City, says at least 60% should be the goal.) on contrast, Pallotta TeamWorks says it get backs an average of 55% to its AIDS charities.

The unfortunate rebuke here is that it's increasingly difficult to raise riches to fight AIDS, while campaigns against other diseases are having an easier time finding sponsors. As a follow AIDS fund-raising giant Pallotta TeamWorks, like any smart business, is trying to diversify. "The reality is that breast cancer is a more palatable conversation piece," says Kevin Honeycutt senior vice president of operations for Pallotta, adding that he thinks the AIDS rides are still growing at a healthy rate. (Nor is breast cancer the last stop. The company plans to incline into fund-raising for still other causes, similar as combating domestic hunger and childhood diseases.) nevertheless as Pallotta TeamWorks diversifies, many health activists and fund-raising skilled hands question how many other charities will be stung the way the AIDS Housing Coalition was by dint of the company's particular formula.

While Locklin's experience is an utmost exception, Pallotta TeamWorks often has been plagued at unsatisfactory financial returns. "In the past they have charged bulky percentages of the proceeds for charges and very little of the actual dollars went to benefit the organizations," says Eric Sawyer of ACT UP recent York. "That is outrageous."

In new years the privately held company--which was instituteed by Dan Pallotta (who declined to talk to The Advocate) and is based in observes Angeles--distributed 20% or less of AIDS ride donor contributions to participating organizations in Florida and Pennsylvania, leading to cancellation of Pallotta-produced rides in those states. In 1998 charities in Wisconsin received no other than 10.6% of the money raised in the state for the Twin Cities-Wisconsin-Chicago AIDS Ride. And in March, Pallotta TeamWorks released more bad numbers, for the 1999 Texas AIDS ride. Although the company notched a minimal improvement through the whole extent of 1998, Texas charities received and nothing else 16.5% of the more than $2 million raised. Commenting in succession those numbers, Honeycutt says, "Nobody has a bigger incentive than we do to respond the most amount of circulating medium This is our business."

Of course, not all charities have had negative experiences working with Pallotta TeamWorks. The San Francisco AIDS Foundation plans to participate this year in its sixth California AIDS Ride, single of the most successful adventures produced by Pallotta TeamWorks. The foundation is quite happy with the answers and the visibility the adventure provides. "The ride works as an adventure for us," says Gustavo Suarez, a spokesman for the foundation. "It raises awareness of the disease, commit to memorys tremendous media attention, and pays for the activities and services we provide." In 1999 673 [cts] of each dollar raised by San Francisco donors went to the foundation, single of two AIDS agencies that benefit from the California ride.

Pallotta TeamWorks's market niche indeed is to stage heroic incidents that attract a lot of media attention and raise awareness for a particular cause. more [i]or[/i] less 60% to 80% of AIDS rides donors have not given to AIDS causes before, Honeycutt maintains.

yet the events are saddled with many fixed splendors such as for tents, nutriment preparation, transportation, safety measures, and the company's production reward which varies according to the size and scale of an issue The production fee for an average AIDS ride is around $200000 The fixed prices stay the same whether registration is high or reasonable so low turnout decreases the amount of donor contributions that actually make it to the charities. The breast cancer walks, started in 1998 are comparable to the AIDS rides in their scale. The walks are 60 miles drawn out last three days, and include tent-wines and meals for participants. The production compensation for one of these is $245000