Attorney General James Releases Annual “Pennies for Charity” Report

December 2, 2024

NEW YORK - 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 2023 charitable fundraising campaigns submitted to the Office of the Attorney General's (OAG) Charities Bureau by professional fundraisers to protect New Yorkers' wallets and ensure both donors and charities who choose to work with fundraisers have all the information they need to make informed decisions. The report provides guidance and tips for New York donors, examines trends in the nonprofit sector, and shares details about fundraisers' performance.

"New Yorkers have a proud tradition of giving and they deserve to know that their hard-earned donations are being used responsibly," said Attorney General James. "I encourage everyone to consult my office's tips for charitable giving before making donations this holiday season, and my office will continue to protect donors and support the critical work of nonprofit and charitable organizations across our state."

Professional fundraisers are outside, for-profit contractors often hired by charities to run campaigns. This year's report found that in 2023, professional fundraisers received nearly a fifth of every dollar donated to the charities that hired them - a total of more than $261 million in fees and expenses. An analysis of 581 campaigns conducted by professional fundraisers in 2023 found that charities received 83 percent of donations, a notable increase from the 77 percent return in 2022.

New York is home to many diverse charitable organizations and institutions, with more than 98,000 charities registered with the OAG Charities Bureau. Many charities choose to contract with for-profit professional fundraisers, who can bring expertise in raising money from a variety of donor groups. Professional fundraisers must register with the Charities Bureau and report on their charitable campaigns, including the campaigns' earnings and expenses. The 2024 Pennies for Charity report is based on analysis of professional fundraisers' 2023 financial results.

The report found that in 2023, New Yorkers' charitable giving increased by $5.8 million from 2022. There were also nine more charitable fundraising campaigns in 2023 than there were in 2022. Other report findings include:

• In 46 percent of the campaigns, charities received less than 50 percent of funds raised, with professional fundraisers retaining the rest.
• In 16 percent of the campaigns, expenses exceeded revenue and cost charities more than $26 million. While the number of such campaigns decreased from last year's Pennies for Charity report, the total cost for charities more than doubled from the $11 million reported in 2022.

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. 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.
• Some online platforms that host groups and individuals soliciting for causes do not obtain permission from charities, or vet those charities that use their service. Donors should only give to campaigns conducted by people they know. Donors also should check what fees they will be charged and make sure that the charity has given its permission for the use of its name or logo. The charity's site or the charity should confirm that the charity has approved the campaign.
• When donating online, make sure the website is secure. The web address should start with "https." Unless the charity uses a separate payment site, the web address should match that of the organization that will receive the donation.
• Be wary of email solicitations that ask you to click a link or open attachments. These could be phishing scams that try to trick you into giving out your credit card number, Social Security number, or other confidential information.
• Use the OAG Pennies for Charity database to review a charity's fundraising track record. It will show you what percentage of a professional fundraiser's campaign went to the charity. If a charity frequently receives only a small percentage of funds raised, you may want to look further into how well that charity manages its fundraising and accomplishes its mission. You can also use OAG's searchable registry to look up charities' financial reports.
• More information about OAG's Charities Bureau and organizations it regulates may be found online. If you believe an organization is misrepresenting its work or that a scam is taking place, please contact OAG's Charities Bureau at [email protected] or (212) 416-8401.

This report was authored by Fundraising Supervisor Siobhan Blank and Registration and Fundraising Section Chief Hanna Rubin, and edited by Administrative Assistant Amanda Gimiani, all of the Charities Bureau. Data analysis was completed by Casey Marescot under the supervision of Deputy Director Gautam Sisodia and Director Victoria Kahn, all of the Research and Analytics Department. Design and layout were created by Graphic Designer Rachel Castro. The Charities Bureau is led by Bureau Chief James Sheehan and Deputy Bureau Chief Karin Kunstler Goldman. The Charities Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.