Phone Fundraisers Take More Than Charities: NYAG

Telemarketing fundraising companies hired by charities working in New York State take more than 60% of the money they raise for themselves, not for the causes for which they’re trying to raise money, according to state Attorney General Andrew Cuomo.

On average, just 39 cents of every charitable dollar raised by these firms actually goes to charity. The balance is used to pay fees and expenses associated with the fundraising, according to the report.

In addition, telemarketers raised a total of $178.7 million on behalf of 442 charities. In total, $108.2 million, or approximately 61%, was paid to the telemarketers as fees and other costs of the campaigns, leaving charities with less than 40% of the money actually raised for their causes, the report said.

The report also found that:

*In 271 of the 553 campaigns the report covered, charities received less than 30% of the funds raised.

*In 51 of the campaigns reflected in the report, charities actually lost money.

*In only 45 campaigns did the charity retain at least 65% of the money raised, the amount deemed acceptable under the Better Business Bureau's standards for charitable organizations.