Attorney General Letitia James report: Charities got smaller percent of donations in '24

Charities in New York State received 75% of the more than $1 billion collected in 2024 campaigns run by professional fundraisers, a drop from 83% collected a year earlier, according to Attorney General Letitia James' annual "Pennies for Charity: Fundraising By Professional Fundraisers" report.

The report analyzed data sent to the attorney general's Charities Bureau from 588 fundraising campaigns, seven more than in last year's report, officials said in a statement Monday. In 293 of the campaigns, charities received less than 50% of the money raised according to the report, which advises consumers to research how much of what they donate actually goes to their chosen charities.

In 104 campaigns, or 18%, expenses were greater than the funds raised, "costing charities more than $20 million," the report said.

Avoiding scams

"Every year my office releases the Pennies for Charity report to help New Yorkers understand where their donations are going," James said in a statement. "Ahead of the holiday giving season, I encourage everyone to consult my office's tips for charitable giving to avoid scams and ensure that their hard-earned money is being used for good."

The 2024 fundraising campaigns brought in $1,578,918,053 overall, nearly $83 million more than in 2023, the report said. Of the amount raised, charities received nearly $1,184,675,431, or 75%, of the donations, "a notable decrease from the 83 percent return in 2023," the Attorney General's Office said in a statement. The professional fundraisers received $395,242,622 in fees or expenses, or 25%, up from 17% in 2023, the report found.

In New York State, 102,000 charities are registered with the attorney general's Charities Bureau, the report states. All professional fundraisers are required to register with the bureau.

The report advises potential donors to take steps to weed out scams and research a charity of interest to determine, for instance, how much it receives from a professional fundraising campaign. The website also has a charity database, enabling a user to learn how much money was raised, how much the charity netted, and the professional fundraiser that conducted the campaign.

The report offers tips to avoid scams, including verifying that a direct mail charity appeal comes from an actual charity.

"Does the organization have a name that sounds like a well-known charity? Double-check — is it the one you think it is?" the report advises.

Laws bind telemarketers

Telemarketers are required to tell potential donors their names, which fundraising group employs them, and if the telemarketer is getting paid, the statement said.

"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."

Katherine Fritz, president and CEO of Long Island Cares — The Harry Chapin Regional Food Bank, based in Hauppauge, said the food bank's use of a professional fundraising organization follows a "code of ethics," adding it is "transparent" with donors about their fundraising.

She said the food bank's website lists its annual 990 tax forms and advises donors to go to "watchdog" organizations like Charity Navigator and GuideStar, now called Candid, to look up the charity's finances.

In 2024, Long Island Cares used a professional fundraising organization identified as The Philanthropic Resource Group Inc. in the Charities Bureau database. The fundraiser brought in gross receipts of $831,179 last year, with Long Island Cares netting $780,179 or 94%.

Fundraising expertise

Fritz said the Resource Group, based in Holbrook, is used only to secure government grants for the food bank "because we don’t have that expertise. ... It’s a very specific kind of fundraising. We pay him a fee. ... There’s no percentage of the grant that goes to the Resource Group."

She said the food bank follows a code of ethics from the Association of Fundraising Professionals. That "means that for fundraisers, there is never a percentage of donations that go to any one fundraiser or vendor," Fritz added. "There are some organizations that do pay staff on percentages raised, but as an AFP member, we agreed not to do that."

She added the Long Island Cares has salaried staff who handle other aspects of donations, such as major gifts, special events, private grants and corporate grants  — "all the other areas of fundraising that the nonprofit does to make sure we can meet the needs of the community we serve and complete our mission."

Craig Fligstein, chief grant officer of United Way of Long Island, said his agency contracts with the Resource Group to help United Way secure government grants. He added that the Charities Bureau database makes it appear that the fundraising firm gets a small percentage of the money raised.

According to the database, the Resource Group collected $720,000 in gross receipts for United Way in 2024, with the Long Island charity receiving $680,000, or 94%.

"It looks like it’s coming off the top of the grant, and it’s not," Fligstein said. "We don’t pay them through the grants they receive from that. We don’t pay a percentage. They’re not taking off the top of the grant."

By Olivia Winslow

olivia.winslow@newsday.com@newsollie