Sunday, December 23, 2012

CHARITIES | 3/4 Clients Keep < Half Telemarketers $

Dec. 23, 2012–The New York attorney general has jurisdiction over charities that (1) raise or spend more than $25,000 in New York, and (2) any charity that uses a professional fundraiser. 

 In 78 percent, or 467, of the 602 campaigns, the charities kept less than 50 percent of the funds raised.  In 76 of the 602 campaigns reflected in the report, charities actually lost money. In only 49 of the 602 campaigns did the charity retain at least 65 percent of the money raised, the amount deemed acceptable under the Better Business Bureauʹs standards for charitable organizations.

In total, 61.5 percent, or $147.9 million, of the funds raised by 82 telemarketers in 2011 was paid to fundraisers for fees and/or used to cover the costs of conducting the campaigns.  By comparison, charities retained 38.5 percent, or $92.7 million, of the total funds raised in the campaigns. [Note: As of December 23, the website has a six-point decimal-place error in reporting the dollar amounts.]

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