Big cut of charity donations lines pockets of fundraisers, not causes, says report by NY Attorney General
A lot of the money you give to charity doesn’t wind up in charities’ pockets at all, says a damning new report from New York’s attorney general.
Almost a third of the money goes into the pockets of for-profit fundraisers who solicit donations on charities’ behalf, the report says.
And in 31% of the 824 charitable campaigns analyzed by Attorney General Letitia James’ office, for-profit fundraisers keep more then 50% of the cash they raise.
Overall, the charities held onto $918 million they solicited in 2019, while professional for-profit fundraisers kept $364 million, 28% of the total $1.28 billion pie, said the report released Friday.
“Every year, New Yorkers give generously to charity. Unfortunately, not all the money they donate reaches the charities they intend to help,” James said in a written statement. “I encourage all New Yorkers to follow our tips to ensure that their money is going to a reputable source this holiday season.”
In 17% of the campaigns the AG’s office analyzed, the expenses spent on raising funds surpassed the amount of cash raised for a total loss of about $17 million.
James acknowledges in her report that for-profit fundraisers are often viewed as necessary by non-profits looking to boost the donations they receive, but said using them can also prove to be a double-edged sword.
“Though many fundraisers’ diligence and expertise help charities achieve their goals, some collect fees so large that charities receive only a small fraction of the total money donated,” the report concluded. “Some fundraisers also partner with sham charities to give potential donors misleading information.”
In one sting earlier this year, the attorney general’s office shut down several bogus fundraising operations as well as the charities they worked for.
Despite that, James reported that the fundraising business is showing signs of improvement. The 28% of donations kept by fundraisers in 2019 is down from the 33% they kept in 2016.
James’ report offers advice for giving — including asking telemarketers who they work for, checking an organization’s website, and looking up individual charities on websites like charitynavigator.org or guidestar.org.
