But the chairman of the Duff's restaurant chain in the Midwest volunteered to pay the production costs of the first two telethons, which were produced at the old Osmond studios in Orem. The first show had a "network" of just 30 TV stations. It benefited 22 hospitals and raised $4.7 million.

The network has grown to help 170 hospitals a year now. The telethon is now produced from Disney World. Besides big-name entertainers who help, the network has scores of big sponsors — from Disney to Wal-Mart, Costco, Coca-Cola, Kroger (the grocery chain that owns Smith's locally), Delta Air Lines and more.

While the foundation produces the telethon, people who call to donate talk to local representatives of their local hospital. That hospital is then responsible to collect the money itself and may spend it without restrictions.

Scott Burt, chief operating officer for the network, said many of the hospitals had no fundraising or development offices until they joined the network and had its help to form them. They now use them to raise money far beyond network activities.

Jim Hall, current president and CEO of the network, who replaced Shannon in 2006, says the telethon itself now generates only about a quarter of the money that the network raises for hospitals.

About as much comes through local radiothons nationwide. And more than twice as much comes through corporate drives (including many retailers that allow patrons to buy paper "balloons" for a $1 donation at 30,000 outlets nationwide).

The network generates its own money to operate and conduct fundraisers in two main ways, Hall said. About half comes from donations from corporations. "It has to be a gift from a company" specifically for foundation operations, he said, "because one of our models is that everything raised locally stays local."

Also, about 37 percent of the foundations' operating money comes from fees paid by hospitals to participate in the network.

Written responses from the network to Deseret News questions say hospitals pay fees based on their market size. Typically, one member hospital is in each market. Fees range from $25,392 in Topeka, Kan., to $329,991 in Chicago. (New York's fee is divided among four hospitals, and the fee in Los Angeles is divided between two.)

The network says a typical member hospital receives eight to 10 times the cost of its fees in donations.

"For example: In Salt Lake City, Primary Children's Medical Center's 2008 membership fee was $115,085 and in return, Children's Miracle Network programs generated $1.7 million in fundraising for the hospital," the network statement said.