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Sunday, January 23, 2022

AG Report Finds Solely 2/3 of Charity Donations Went to Charities & Skilled Fundraisers Retained the Relaxation

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By SÍLE MOLONEY

(L-R) CONGRESSMAN ADRIANO ESPAILLAT, and Bronx Borough President Ruben Diaz Jr., settle for a examine for greater than $256M from NYS Legal professional Basic Letitia James as a part of the Heal NY statewide marketing campaign at a press occasion at Lincoln Hospital within the South Bronx on Monday, Oct. 4, 2021. The cash is a part of a settlement from a lawsuit the legal professional basic broght in opposition to producers and distributors of opioids and might be used for therapy and training to fight the general public well being disaster. Picture credit score: José A. Giralt

In time for Giving Tuesday and the vacation season, on Monday, Nov. 29, New York Legal professional Basic Letitia James launched her annual “Pennies for Charity: Fundraising by Skilled Fundraisers” report, which discovered that charities that used skilled fundraisers obtained solely about two-thirds of each greenback donated in 2020, with these fundraisers retaining the rest — incomes greater than $380 million.

Analyzing 718 campaigns carried out by skilled fundraisers in 2020, the report concluded that charities earned 73 p.c of donations from these campaigns, a small enhance from the earlier 12 months, and consistent with the final 4 years’ outcomes. “As New Yorkers prepare to provide to their favourite charities tomorrow on Giving Tuesday, they need to know the place their cash goes,” stated James.

“My obligation is to guard New Yorkers’ wallets and be sure that what they donate reaches the charity of their alternative,” she continued. “My workplace will proceed to crack down on deceptive fundraising practices, so New Yorkers don’t have to fret the following time they offer generously to a trigger they assist. With the vacation season upon us, I encourage all New Yorkers to make use of our ideas as a information to make knowledgeable contributions and be sure that their cash goes to a reliable supply.”

New York is dwelling to a big and numerous variety of charitable organizations and in keeping with the legal professional basic’s workplace (OAG), like all sectors of society, charities have confronted many challenges amid the COVID-19 pandemic. Nonetheless, they stated regardless of a major lower in in-person fundraising and pandemic-related closures and postponements, charitable giving in response to fundraising campaigns in New York jumped to over $1.4 billion in 2020 — a rise of greater than $179 million from 2019 pre-pandemic marketing campaign revenues. Different report findings embrace:

  • In 339 campaigns, or 47 p.c of campaigns, charities obtained lower than 50 p.c of funds raised, with skilled fundraisers retaining the remainder.
  • In 150 campaigns, or 21 p.c of the campaigns, fundraising bills exceeded income, costing charities greater than $10 million.

This 12 months’s “Pennies for Charity” aggregates data from stories filed with the OAG’s charities bureau by skilled fundraisers for campaigns carried out on behalf of charities in 2020. OAG officers stated skilled fundraisers should register with the OAG, and their monetary stories should break down the income raised, in addition to the bills generated by the marketing campaign. The report and the searchable Pennies for Charity database containing knowledge from these stories is posted on the Charities Bureau web site.

This 12 months’s report lays out ideas for donors to comply with earlier than donating over the telephone, by way of the mail, or on-line to make sure that their contributions attain the causes they intend to assist. Essential ideas to bear in mind embrace:

  • In case you’re contacted by a telemarketer, ask inquiries to make an knowledgeable determination: New York legislation requires telemarketers inquiring for charities to make sure disclosures to potential donors and prohibits them from making false, deceptive, or misleading statements when soliciting contributions. Telemarketers are required to inform potential donors their names, which skilled fundraiser employs them, and if the telemarketer is getting paid. Donors may ask what proportion of their donation might be paid to the fundraiser for charges and bills.
  • In case you obtain a unsolicited mail charitable attraction, confirm the soliciting group: Does the group have a reputation that feels like a widely known charity? Doublecheck — is it the one you suppose it’s? Does the mailing declare to comply with up on a pledge that you don’t keep in mind making? Does it clearly describe the applications that the charity plans to fund along with your donation?
  • In case you’re donating on-line, do your analysis first: Donating on-line or by way of an app is handy for donors and may be price efficient for a charity. However earlier than hitting “Ship,” donors ought to examine whether or not a marketing campaign is legit. Under are steps to take earlier than donating on-line:
    • Some on-line platforms that host teams and people inquiring for causes don’t get hold of permission from charities, or vet these charities who use their service. Donors ought to solely give to campaigns carried out by folks whom they know. Donors additionally ought to examine what charges they are going to be charged and be sure that the charity has given its permission for using its identify or brand. The location or the charity ought to verify that the charity has permitted the marketing campaign.
    • When donating on-line, ensure the web site is safe: The net handle ought to begin with “https.” Except the charity makes use of a separate fee web site, the net handle ought to match that of the group that may obtain the donation.
    • Be cautious of e-mail solicitations that ask you to click on a hyperlink or open attachments. These might be phishing scams that attempt to trick you into giving out your bank card quantity, Social Safety quantity, or different confidential data.

Extra details about the OAG’s charities bureau and organizations regulated by it could be discovered on-line. Any resident who believes a company is misrepresenting its work or {that a} rip-off is going down, can contact the OAG’s charities bureau at [email protected] or (212) 416-8401.

The report was authored by director of registrations and fundraising sections for the charities bureau, Hanna Rubin, and charities bureau fundraising supervisor, Siobhán Clean. Information evaluation was accomplished by knowledge analyst, Anushua Choudhury, of the analysis and analytics division, underneath the supervision of director, Jonathan Werberg. The charities bureau is led by bureau chief, James Sheehan and deputy bureau chief, Karin Kunstler Goldman. The bureau is part of the division for social justice, which is led by chief deputy legal professional basic, Meghan Fake, and is overseen by first deputy legal professional basic, Jennifer Levy.

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