In advance of Giving Tuesday and the holiday season, New York Attorney General Letitia James today released her annual “Pennies for Charity: Fundraising by Professional Fundraisers” report. The report analyzes data from 2022 charitable fundraising campaigns submitted to the Office of the Attorney General’s (OAG) Charities Bureau by professional fundraisers. The report looks at trends in the nonprofit sector, provides guidance and tips for donors, and gives charities information about fundraisers’ performance.
This year’s report found that in 2022, professional fundraisers received nearly a quarter of every dollar donated to the charities that hired them — a total of more than $347 million in fees and expenses. An analysis of 572 campaigns conducted by professional fundraisers in 2022 found that charities received 77 percent of donations, a notable increase from the 73 percent return in 2021. Professional fundraisers are outside, for-profit contractors often hired by charities to run campaigns.
“New Yorkers who generously donate to charities should do so without any fear of their money being misappropriated or mishandled,” said Attorney General James. “With the holiday season and Giving Tuesday soon approaching, I encourage anyone looking to donate this winter to consult our tips for charitable giving and ensure that their gifts are put to good use. My office will continue to work throughout the season to protect New Yorkers from fraud and ensure transparency in the operation of charitable organizations.”
New York is home to many diverse charitable organizations and institutions, which like all parts of our society, faced many challenges during the coronavirus pandemic. The report found that charitable giving declined by approximately $221 million from 2021 revenues. Other report findings include:
- In 273 campaigns — 48 percent — charities received less than 50 percent of funds raised, with professional fundraisers retaining the rest.
- In 97 campaigns — 17 percent — expenses exceeded revenue and cost charities over $11 million. These are higher numbers than reported in last year’s Pennies for Charity report.
This year’s Pennies for Charity report is based on information from professional fundraisers’ reports filed with the Charities Bureau for campaigns conducted in 2022. Professional fundraisers must register with the Charities Bureau, and their financial reports must break down their campaigns’ earnings and expenses. The report and the searchable Pennies for Charity database containing the results of specific campaigns are posted on the Charities Bureau website.
The report also includes tips for donors to follow before donating over the phone, by mail, or online to ensure that their contributions reach the causes they intend to support. A link to the report and donor guide is above, but important tips to keep in mind include:
- If you are contacted by a telemarketer, ask questions to make an informed decision. New York law requires telemarketers soliciting for charities to make certain disclosures to potential donors and prohibits them from making false, misleading, or deceptive statements to contributors. Telemarketers are required to tell potential donors their names, which professional fundraiser employs them, and if the telemarketer is getting paid. Donors may also ask what percentage of their donation will go to the fundraiser for fees and expenses.
- If you receive a direct mail charitable appeal, verify the soliciting organization. Does the organization have a name that sounds like a well-known charity? Double-check — is it the one you think it is? Does the mailing claim to follow up on a pledge that you do not remember making? Does it clearly describe the programs that the charity plans to fund with your donation?
- If you are donating online, do your research first. Donating online or via an app is convenient for donors and can be cost effective for a charity. But before hitting “send,” donors should check whether a campaign is legitimate.