Charitable giving by New Yorkers increased by about $6 million in 2023 when compared to the previous year, but for-profit fundraisers kept nearly a fifth of the funds raised for their nonprofit clients, according to recent report.
New York Attorney General Letitia James on Monday released the annual “Pennies for Charity: Fundraising by Professional Fundraisers” report, which provides insight into charitable fundraising trends and offers guidance for New Yorkers planning to donate, according to a press release.
It emphasizes the importance of donor awareness, offering tips to ensure contributions reach their intended causes. Recommendations include verifying the legitimacy of solicitations, understanding fundraiser fees and consulting the OAG’s Pennies for Charity database to review charities’ track records.
New York State is home to more than 98,000 registered charities, many of which rely on professional fundraisers to reach diverse donor groups. These fundraisers must register with the Charities Bureau and disclose campaign earnings and expenses.
“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," said James.
The report found that in 2023, professional fundraisers retained nearly a fifth of all donations, totaling more than $261 million in fees and expenses. Professional fundraisers—outside, for-profit contractors often hired by charities—conducted 581 fundraising campaigns in 2023. Charities received 83% of the funds raised, an improvement from 77% in 2022.
Key findings from the report include:
- Charitable giving increased by $5.8 million in 2023 compared to 2022.
- In 46% of campaigns, charities received less than half of the funds raised.
- In 16% of campaigns, expenses exceeded revenue, costing charities more than $26 million—more than double the $11 million reported in 2022.
New Yorkers concerned about potential scams or misrepresentation by charitable organizations is encouraged to contact the bureau at [email protected] or (212) 416-8401.
