In preparation for this year’s Giving Tuesday and the holiday season, New York Attorney General Letitia James released her annual “Pennies for Charity” report (pdf) to provide guidance for donors and charities.
Created in 2012, Giving Tuesday takes place on the Tuesday after Thanksgiving in the United States. Its website describes the day as “a global generosity movement that unleashes the power of radical generosity around the world.” Giving Tuesday also shares the same name with an independent nonprofit that supports the movement.
“New Yorkers should use these tips to ensure their kind donations are being used as they intended,” James said in a Twitter statement when referencing the newly published report. Professional fundraisers are legally required to register with the state attorney general’s office and send their financial reports to the Attorney General’s Charities Bureau.
The report reviewed 658 campaigns by professional fundraisers in 2021. It found that more than $460 million in charitable contributions went to professional fundraisers hired by charities to help them raise money. An estimated 73 percent of those donations went directly to the charities themselves, which represents a small increase from 2019 and little change from the prior year.
“When New Yorkers make the generous choice to give to a charity,” James said in a statement from her office, “they trust that their money will be used responsibly.”
The report also found that 276 charitable campaigns (about 42 percent) received less than half the funds raised, with hired professionals retaining the rest. An estimated 15 percent of the campaigns analyzed showed expenses exceeding revenue and cost charities more than $10 million.
If contacted by a charity, James called on New Yorkers to ask questions and do research before giving any money using the following appeals—telemarketing, direct mail, and online donations.
New York state law requires telemarketers who are soliciting on behalf of charities to make disclosures. These include whether they are getting paid and are part of a professional fundraising team. It is illegal for telemarketers to make false or misleading claims. The report also advises donors to double-check if a charity making an appeal is a well-known name and make sure that websites are secure before donating online.
If donors believe that an organization is misrepresenting its work or that a scam is taking place, New Yorkers are asked to contact the Office of the Attorney General’s Charities Bureau at [email protected] or call (212) 416-8401. More information on the Attorney General’s Charities Bureau and the organizations it regulates may be found on its website.
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