Nova Scotia Crime Stoppers is collecting only $3 from every $10 raised, a CBC investigation has found, but a spokesman for the charity says the money spent on an external fundraiser is worth it.

Crime Stoppers, which offers cash rewards for anonymous tips about crimes, uses a telemarketing firm based in Moncton, N.B., to help it raise money.

Telemarketers for Fenety Marketing Services usually collect $15 or $20 from each donor. But the money adds up. Last year, the company collected nearly $370,000 on behalf of Crime Stoppers, a CBC News investigation has uncovered.

Wayne Noonan, a volunteer spokesman for Crime Stoppers, said there is no way the charity's 150 volunteers could do that because they're busy with fairs and other promotions.

"We contract with a very professional service. We're very pleased with the association we've had with Fenety over the last nine years now, or 10 years," said Noonan.

'This is the single thing that's keeping Crime Stoppers in many provinces alive'—Mark Fenety, Fenety Marketing president

After tax rebates, Crime Stoppers took in about $94,000 last year — about 30 per cent of the total money raised.

Mark Fenety, president of the telemarketing company, said the rest of the money covers the costs of fundraising and the company's fee of 10 to 15 per cent, as well as the publication of an annual Crime Stoppers awareness guide.

"They have no risk involved. They get a very professional and ethical and courteous representation from us because that's what we've built our standards on," Fenety told CBC News.

"I do believe this is the single thing that's keeping Crime Stoppers in many provinces alive and able to continue operating."

Fenety raises money for 35 clients across the country, including every Crime Stoppers organization and police association in Atlantic Canada.

Though only a few charities in Nova Scotia use external fundraisers, it's a big business in Canada.

Big business

According to the Canada Revenue Agency, these companies collected more than $100 million from charities in 2008 — more than $760 million in fees in the last five years.

There are no limits on how much a charity can pay its fundraiser. However, the tax agency suggests that fundraising costs amount to about 35 per cent of the money raised, and no more than 70 per cent. If it exceeds that, the group could lose its charitable status.

Fenety argues that the 70-30 split with Crime Stoppers is not as it appears. He said much of the money his company keeps in fees are related to the awareness guide, which involves soliciting advertisers.

He said the fundraising costs are about 35 per cent of the total, while another 35 per cent covers the booklet and other awareness activities, such as unsuccessful calls out of the call centre.

The contract with Fenety Marketing was never tendered. Neither Fenety nor Noonan would show CBC News the details.

Noonan said he believes the money his group spends on telemarketing is worth it.

While RCMP and Halifax Regional Police pay for the Crime Stoppers office in Bedford and two salaries, donations cover everything else. Without professional fundraising help, Noonan said, the group would have a tough time collecting 6,000 crime tips a year.

He said so far this year, Crime Stoppers has assisted in dozens of arrests, more than 100 charges and $250,000 in drug seizures.