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NYS Attorney General Issues Financial Report on Professional Fundraising Statistics and Trends in New York
By Anne Carroll
The annual “Pennies for Charity: Fundraising by Professional Fundraisers” report was released by the New York State Office of the Attorney General in December. To protect donors and charities, the Pennies for Charity report and database reveals the results of professional fundraisers’ charitable fundraising campaigns and other nonprofit sector statistics in 2023.
Professional fundraisers are for profit companies hired by charities to fundraise for them. These third party professional fundraisers retain a portion of the money they raised.
The Pennies for Charity searchable database lists includes organizations that used professional fundraisers in Rockland County in 2023: Rockland County Society for the Prevention of Cruelty to Children, Rockland County Sheriff’s Deputies Association, Rockland County Volunteer Firefighters Association, and Dominican University New York. All of these Rockland organizations receive less than 50% of the funds raised from their professional fundraisers. The database also includes information from earlier years and charitable organizations that ceased using professional fundraisers.
“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 Letitia James. “I encourage everyone to consult my offices’ 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.”
The Rockland County Society for the Prevention of Cruelty to Children (RCSPCC) collaborates with local police departments for sting operations of businesses selling alcohol and marijuana to underaged buyers after having worked with child protective services through the ‘80s and ‘90s. Receiving 25% of the funds raised by its professional fundraiser, National Benefit Company, the RCSPCC has been able to pay for some equipment such as one vehicle with insurance, walkie talkies, and cell phones.
Despite receiving the minority of the funds raised, RCSPCC president John Comparetto praises National Benefit Company saying they’ve “been very helpful, especially during times years ago when we had no money at all.”
Comparetto dispels the impression that National Benefit Company takes an egregious percentage of the funds raised explaining, “It sounds like [they’re] taking a lot of money, but [they’re] not really making that much money. They’re paying people to make phone calls. They’re paying people to pick up the checks.”
According to the Pennies for Charity report, “Many charities contract with for-profit professional fundraisers. They bring expertise in raising money from various donor groups. Professional fundraisers can play a key role in furthering a charity’s mission, and many belong to professional associations that require them to commit to a code of ethics.”
With only a small number of volunteers, Comparetto admits that successful fundraising is something that the RCSPCC “really couldn’t do on our own.”
By only using volunteer efforts and keeping other expenses minimal, the RCSPCC is able to operate comfortably on the 25% of the funds they receive. Comparetto is grateful for that 25% after seeing in the Pennies for Charity database that some charities receive single digit percentages of funds from their professional fundraisers.
Highlighted in the Pennies for Charity report, some professional fundraisers were unable to give any money to their charity. “In 16 percent of the campaigns, expenses exceeded revenue, costing charities more than $26 million.”
Still Comparetto concedes that “I’d love to find a fundraiser that gives us 75%, but they just don’t exist […] it’s just not feasible, and you’re just not gonna find a fundraiser who’s gonna work and lose money.”
Overall, New Yorkers donated almost $1.5 billion in 2023 which is a $5.8 million increase from 2022. Additionally, across New York State the percentage cuts to charities has grown. According to the Pennies for Charity report: “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.” In 54% of campaigns, charities received the majority of the funds raised, putting Rockland charities in the slim minority of those receiving less that 50%.
In 2023, Rockland County Sheriff’s Deputies Association used National Benefit Company to fundraise for them, receiving 25% of the $16,425 raised. Rockland County Volunteer Firefighters Association received 21% of the $141,887 raised from their professional fundraiser H&M Leasing Corporation, and Dominican University New York kept 41% of the $9,900 raised through Lester, Inc.
In 2023, in the lower Hudson Valley, 34 charitable organizations engaged professional third-party fundraisers, according to the Pennies For Charity database.
