Suggests Three Methods in Collection of Unpaid Charity Drive Pledges

(Jewish Daily Bulletin)

An interesting procedure with regard to the collection of charitable pledges was adopted by the Englewood Hospital, based on similar action taken by the American Jewish Relief Committee, the Hackensack Hospital and the Jamaica Hospital.

Following a legal opinion that hospital pledges are binding obligations and can be collected by due process of law, Clarence D. Kerr, chairman of the building committee of the Englewood Hospital, called a meeting of his committee to determine upon which of several methods shall be pursued in collecting overdue pledges necessary to meet bills for work completed on the hospital.

At the meeting the methods used by the hospital at Jamaica, L. I., the Hackensack Hospital and the American Jewish Relief Committee of New York City, were considered.

The president of the Jamaica Hospital outlined the procedure employed and the results attained in a letter read at the meeting.

“The results from our efforts were: First-A considerable number of payments as soon as the policy of the hospital was announced. Second-A large number of payments as soon as summonses were served. Third-A very decided favorable reaction on the part of the public toward the business-like handling of this matter.

“Naturally some of our trustees were fearful that such action would result unfavorably on the public. This has not been the result. On the contrary, comment has been entircly favorable. Substantial people who made subscriptions, and paid them, are generally pleased that Jamaica Hospital had nerve enough to force payment by others who made subscriptions for advertising, perhaps, with no idea of ever paying. Several people who paid their subscriptions under pressure of court action, came back to us and complimented the board for its policy, and have become firm supporters of the hospital. Not a single instance of unfavorable comment has come to my attention.

“Of course, we did not proceed in the matter rough shod, but used every effort to collect subscriptions before suing. The finance committee endeavored to use the same good business judgment and exercise the same discretion, that a well managed business concern would use in collecting delinquent accounts.”

Through civil action the American Jewish War Relief Committee collected $1,500,000 by civil action in the courts.

The Hackensack Hospital followed a different method. It borrowed $50,000 from the Hackensack Trust Co., and assigned $100,000 in pledges as collateral. The Trust Co. proceeded and demanded payment as it would any other overdue promissory note. As a result in a brief time the Trust Co. collected most of the outstanding pledges, more than enough to pay the $50,000 borrowed.