By Hank Russell
A report from the New York Attorney General’s office found that more money was raised for charity last year than the year before, but professional fundraisers took a bigger chunk of that money as well, compared to two years ago.
On December 1 — ahead of Giving Tuesday and the holiday season — AG Letitia James released her annual “Pennies for Charity: Fundraising by Professional Fundraisers” report. The report analyzes data from 2024 charitable fundraising campaigns submitted to the Office of the Attorney General’s (OAG) Charities Bureau by professional fundraisers.
According to the report, charities statewide collected nearly $1.6 billion in 2024. That is more than in 2023, when charities raised approximately $78 million. That was before the outside fundraisers took their cut.
Professional fundraisers are independent for-profit contractors often hired by charities to run campaigns. This year’s report found that in 2024, professional fundraisers received 25% of every dollar donated to the charities that hired them — a total of more than $395 million in fees and expenses. In 2023, they received more than $13 million.
An analysis of 588 campaigns conducted by professional fundraisers in 2024 found that charities received 75% of donations, a notable decrease from the 83% return in 2023. The report also found that:
- In 293 charitable campaigns, or about 50% of campaigns, charities received less than 50% of funds raised in 2024.
- In 104 charitable campaigns, or about 18% of the campaigns, expenses exceeded revenue, costing charities more than $20 million.
“New Yorkers give generously to charities to support causes they care about, and they should know that their donations are being used responsibly,” James said. “Every year my office releases the Pennies for Charity report to help New Yorkers understand where their donations are going. 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.”
New York is home to many diverse charitable organizations and institutions, with more than 102,000 charities registered with the OAG Charities Bureau. Professional fundraisers must register with the Charities Bureau and report on their charitable campaigns, including the campaigns’ earnings and expenses. The 2025 Pennies for Charity report is based on an analysis of professional fundraisers’ 2024 financial results.
To help New Yorkers during the holiday giving season, the report also includes tips for donors to follow before donating over the phone, by mail, or online to ensure that their contributions reach the causes they intend to support. Important tips to keep in mind include:
- If you are contacted by a telemarketer, ask questions to make an informed decision. 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. Telemarketers are required to tell potential donors their names, which professional fundraiser employs them, and if the telemarketer is getting paid. Donors may also ask what percentage of their donation will go to the fundraiser for fees and expenses.
- If you receive a direct mail charitable appeal, verify the soliciting organization. Does the organization have a name that sounds like a well-known charity? Double-check — is it the one you think it is? Does the mailing claim to follow up on a pledge that you do not remember making? Does it clearly describe the programs that the charity plans to fund with your donation?
- If you are donating online, do your research first. Donating online or via an app is convenient for donors and can be cost-effective for a charity. But before hitting “send,” donors should check whether a campaign is legitimate.
- Some online platforms that host groups and individuals soliciting for causes do not obtain permission from charities, or vet those charities that use their service. Donors should only give to campaigns conducted by people they know. Donors also should check what fees they will be charged and make sure that the charity has given its permission for the use of its name or logo. The charity’s site or the charity should confirm that the charity has approved the campaign.
- When donating online, make sure the website is secure. The web address should start with “https.” Unless the charity uses a separate payment site, the web address should match that of the organization that will receive the donation.
- Be wary of email solicitations that ask you to click a link or open attachments. These could be phishing scams that try to trick you into giving out your credit card number, Social Security number, or other confidential information.
- Use the OAG Pennies for Charity database to review a charity’s fundraising track record. It will show you what percentage of a professional fundraiser’s campaign went to the charity. If a charity frequently receives only a small percentage of funds raised, you may want to look further into how well that charity manages its fundraising and accomplishes its mission. You can also use OAG’s searchable registry to look up charities’ financial reports.
More information about OAG’s Charities Bureau and organizations it regulates may be found online. If you believe an organization is misrepresenting its work or that a scam is taking place, please contact OAG’s Charities Bureau at complaints@ag.ny.gov or (212) 416-8401.