DENVER, Colo. -- Several different employees with Endeavor Marketing International, a commercial fundraising company in Denver, were caught on undercover videotaped by 7NEWS misleading people about where their money actually goes.

A recent job applicant at Endeavor Marketing International, or EMI, who asked to remain anonymous, said she was alarmed and disturbed by her interview experience.

"I was told 20 percent would go to DARE and as a sales rep we get 32 to 35 percent," she said.

DARE brings cops into classrooms to help keep kids off drugs.

Our source said she was told that if she was hired by EMI, she would be selling toys and books to raise money for DARE and other charities.

The applicant also said people could purchase items and take them or donate them on the spot.

"They say the money stays in the community it was donated at, the local Castle Rock DARE program," she said.

She also said she observed inconsistencies in the pricing of items on the table and could not figure out how anyone was keeping track of which items were sold and for how much.

"Nothing was recorded. There wasn't any bookkeeping kept along the way," she said.

What concerned the applicant most, she said, was that people were not being told up front as required by state law how much of what they paid was actually going to the charity, in this case DARE.

Our source said she knew she did not want the job but stayed for her second interview out of curiosity.

"I wanted to see where the money goes at the end of the day, if there was any bookkeeping. Where did the toys, books, where did they go? I didn't see any of that. Everything went into the trunk of the interviewer's car," she said.

Our source was not alone in her criticism. There are a plethora of bloggers on Web sites like RipoffReport.com and online discussion groups like DSMAXTheAftermath where former employees voiced concerns about the company's practices.

We went undercover to see how Endeavor Marketing does business.

The company had set up a fundraising table for DARE outside an Office Depot in Littleton last month.

When asked on hidden camera, "If we buy these then the money that we pay goes to DARE?" the EMI employee replied, "It goes to DARE and Cops For Kids. They split it up."

He told us the charities split the proceeds, so we pressed harder for a breakdown.

"There's a little administrative too. I'm not sure how it breaks down, but I know they're the ones who get the majority. Administrative gets just a tad bit; they get the rest," the salesman said.

According to the contracts charities sign with EMI, they get only 5 percent of the proceeds of the sales.

The "tad bit" for administration to which the the salesman referred is actually a whopping 95 percent of the proceeds.

"Misleading people to think that what they buy directly supports our program is just plain wrong," said Angela Copeland, spokesperson for the Castle Rock Police Department.

She said Castle Rock's DARE program has never directly benefited from EMI's sales.

"We've never gotten any sort of financial contribution directly from them," said Copeland.

Colorado's state DARE office does have a fundraising agreement with EMI.

Sgt. Brian Suape said EMI sells DARE merchandise and conducts a school supply drive and toy drive.

Suape could not provide specifics on the total amount of money EMI has raised for DARE in Colorado.

During another undercover investigation at a Wal-Mart in Aurora, EMI employees sold items to benefit Project Pave, a Denver nonprofit that works to prevent domestic violence.

"Actually their annual budget last year was $12,000, and in the 10 weeks we've been working with them, we've doubled that," said an EMI employee who was working at the table.

Another employee said, "We've actually only been working with PAVE for 10, 11 weeks and we've already raised $12,000."

At the time, Project Pave said they had received only about $100 total in small checks from EMI.

EMI employees also said on hidden camera that Project pave received a majority of the money made.

When asked, "So we give you $40, we get all this fun stuff, and how much goes to Project Pave?" the salesperson replied, "Ninety-five percent."

Project Pave's contract clearly shows it gets only 5 percent of the proceeds from EMI's sales.

When asked about her employee's conduct, EMI's owner, Amanda Slate, did not want to comment.

"We want to get you on the record about the things that are being said and the way people are being misled about the money that they are giving to charities. They're being told that thousands of dollars are being raised, and that's not the truth, is it?" Slate said, "I was very specific with you on the phone that I didn't have a comment and I don't want to be on camera."

Slate said any employees who misrepresent the charities are fired. She said all of her employees at EMI receive one hour of training before being sent out to sell and that they sign a code of ethics requiring them to reveal that 5 percent of their purchase goes to charity.

As for record keeping, Slate said records are done when the unsold merchandise comes back to the office.

Colorado Attorney General John Suthers said he has long cautioned charities against using paid solicitors.

"If they lie about it, how much goes to charity, how much goes to administrative, that's a violation of the Colorado Charitable Solicitation Act, a misdemeanor," said Suthers.

"The problem is the people donating think all of it's going to the police fraternal organization or veterans group. If they knew the truth, they wouldn't donate," said Suthers.

Suthers said anyone who wants to donate to a charity should ask questions before giving away his or her money, and if he or she is mislead, that person should report it to the authorities immediately.

Project Pave recently terminated its relationship with the company.

DARE America, the national office for the charity, admits to getting calls of concern from cities across the country almost daily about the commercial marketing companies it uses to raise money for DARE.

The attorney general's office recommends donations be made directly to the charity.

Here are tips for wise giving from the Colorado attorney general and secretary of state's offices.

1. Ask for the registration number of the solicitor and the charity. If solicited in person, ask to see the solicitor and charity's identification. 2. Check the charity's disclosure and financial statements on the secretary of states Web site before you donate. 3. Look up the charity on the Better Business Bureau's Web site at www.give.org. 4. Ask the solicitor how much of the donation will go to the charity. 5. Be wary if the charity fails to provide information about finances. 6. Watch out for charities with names that sound similar to well-known organizations. These sound-alike names are intended to confuse. 7. Do not pay in cash. Donate by check made payable to the charity. 8. Beware of unsolicited e-mail. Go to the charity's Web site directly or call the charity to donate. 9. Simply say "No thank you" and walk away or hang up if you are uncomfortable or not interested in donating. File complaints about charities with the Colorado attorney general at 800-222-4444 or online at www.ago.state.co.us.

Project Pave said in a statement:

" We at Project PAVE are saddened and outraged to learn that the agency's relationship with Endeavor Marketing has been misrepresented to the public by Endeavor Marketing staff. Before entering into the partnership, Project PAVE did its due diligence and reviewed letters of reference from national charities provided by Endeavor and ran a report through the Better Business Bureau. As stated in the signed contract by Endeavor Marketing and Project PAVE: 1. Project PAVE was to receive 5% of the suggested retail price of Endeavor Marketing merchandise sold at retail locations 2. Endeavor Marketing was to provide Project PAVE with a statement of all sales accounting with each payment 3. Endeavor Marketing staff were to honestly, accurately, and without misrepresentation or material omissions, answer customer questions and describe their relationship with Project PAVE as third party solicitors

Project PAVE has terminated its relationship with Endeavor Marketing due to a material breach of contract.

We at Project PAVE offer our sincere gratitude to those who brought this issue to light. It is our hope that when the public chooses to support the good work of Colorado's nonprofit organizations, they support the nonprofit organization directly to ensure that 100% of the contribution benefits the organization and our community. "

DARE America said in a statement:

1) Why does DARE America need to fund raise?
a. DARE America is a non-profit, 501 (c) 3, and is in all 50 states as well as 50 countries worldwide. DARE is not a Federal program.
b. Our limited Federal funding has been cut by 80% over the last four years.
c. Corporate support has decreased while requests for DARE have increased.
d. DARE America is constantly updating the curriculum with supplemental lessons in everything from meth and bullying to OTC prescription drug abuse and gangs. Cost of one supplemental lesson is $600,000.

2) Why do you work with for-profit companies?
a. DARE America receives a percentage of each sale and spends no money on product sold, personnel, storage, or transportation.
b. We want to allow DARE officers to focus their efforts on teaching children and minimize their time spent raising funds or trying to organize volunteers to raise funds.

3) It seems the tactics of your fund raising partners can sometimes be aggressive; do you support this behavior?
a. We want to protect the integrity of the DARE name and we do want to know when our fund raisers are overly aggressive or their behavior has offended someone. We encourage people to call 1-800-223-DARE or go to www.dare.com with their concerns.

4) What is DARE America doing to protect the name of DARE?
a. We have instituted strict policies prohibiting smoking and accepting of cash donations at our fund raising tables.
b. In most cases misbehavior by our fundraising partners results in those individuals being fired.

5) Can you prove D.A.R.E. works?
a. D.A.R.E. works and D.A.R.E. saves lives! There have been 18 studies since 1997 showing D.A.R.E. is effective including a study by the National Medical Association showing D.A.R.E. graduates are five times less likely to begin smoking than non-D.A.R.E. graduates.
b. 11 of these studies can be found on-line on our family friendly website, www.dare.com.
c. Please do not forget, D.A.R.E. is still a bargain. The cost of incarcerating a prisoner for one year is approximately $25,000 per year while the cost of a DARE workbook is .89 cents.
d. And please remember, D.A.R.E. officers not only teach children resistance skills and decision making skills they serve as the first line of defense in Americas schools.

Office Depot had this statement regarding EMI's sales in front of its stores:

"Unfortunately, we have a no solicitation policy at our stores so we cannot allow any of these organizations to gather," said Office Depot spokeswoman Melissa Perlman.