Hey, Charity Telemarketers, Here’s My Number: 1-800-GoAway!

“Pennies For Charity”? That’s what this year’s annual report on charities fundraising from New York State Attorney General Andrew Cuomo says. His bottom line: on average, professional, for-profit telemarketers keep over 60 percent of the money they raise. And some charities across the state received even less. 

According to the report, telemarketers raised a total of $204.8 million on behalf of 444 New York charities in 2008.  In total, $123.9 million, or approximately 60.5 percent, was paid to the telemarketers as profits, fees and other costs of the campaigns, leaving charities with less than 39.5 percent of the money actually raised for their causes.  The report urges charities across the state to find more effective means to raise money. 
 
Some of the significant findings regarding the fundraising campaigns covered in the Attorney General’s report are:
 
In over 80 percent of the “fundraising” campaigns, the charities kept less than 50 percent of the funds raised.
 
In nearly half, charities received less than 30 percent of the funds raised.
 
In only seven percent of the campaigns did the charity retained at least 65 percent of the money raised, the amount deemed acceptable under the Better Business Bureau's standards for charitable organizations.
 
In 42 of the campaigns, charities actually lost money.
Give to charity. Give give give. Give some more. But as for giving to charity via fundraising appeals from for-profit telemarketers – nope.