New York State Attorney General Letitia James has released the 'Pennies for Charity' report, indicating that charitable giving increased by $5.8 million in 2023. However, professional fundraisers retained nearly a fifth of all donations, totaling over $261 million in fees and expenses. This suggests significant costs associated with for-profit fundraising efforts, urging donors to be cautious and informed about where their money goes.
The report suggests that donations can often be less efficient than expected; in 46% of campaigns, charities received less than half of the funds raised. Furthermore, in 16% of campaigns, expenses exceeded revenue, showcasing the importance of donor awareness regarding fees and the effectiveness of their giving.
James advises donors to verify the legitimacy of solicitation efforts, understand fundraiser fees, and consult the OAG's Pennies for Charity database to review track records of charities. These recommendations aim to ensure that contributions genuinely benefit the intended nonprofits, encouraging informed philanthropy among New Yorkers.
The increase in charitable giving signals positive trends for nonprofits, yet the reliance on professional fundraisers poses risks for donations to actually reach their intended objectives. James emphasizes the need for transparency in fundraising practices and encourages New Yorkers to consult her office's guidance for smarter giving strategies.
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