NY Charities Ripped Off: Fundraisers Pocket 25% of Donations

NEW YORK – While New Yorkers dig deep to support worthy causes, a new report from Attorney General Letitia James reveals a disturbing trend: the people *raising* the money are increasingly skimming off the top. The annual “Pennies for Charity: Fundraising by Professional Fundraisers” report, released December 1, 2025, shows that professional fundraisers retained a staggering 25 percent of all donations in 2024 – up from just 17 percent the previous year. That’s over $395 million in fees and expenses siphoned away from charities.

The report, analyzing data from 588 campaigns, paints a grim picture. Charities are receiving a smaller slice of the pie, with only 75 percent of donations making it to the intended beneficiaries, a significant drop from the 83 percent return in 2023. Half of the campaigns analyzed saw charities receiving less than 50 percent of the funds raised. This isn’t just inefficiency; it’s a systematic drain on resources meant for those who need it most.

The numbers are stark. In 104 campaigns – nearly one in five – expenses actually *exceeded* revenue, costing charities over $20 million. That means these organizations didn’t just fail to help, they lost money in the process. Attorney General James is sounding the alarm ahead of Giving Tuesday and the holiday season, urging donors to be vigilant.

“New Yorkers give generously to charities to support causes they care about, and they should know that their donations are being used responsibly,” James stated. “Every year my office releases the Pennies for Charity report to help New Yorkers understand where their donations are going.” Her office is urging potential donors to ask tough questions when contacted by telemarketers, specifically what percentage of their donation will actually reach the charity, and to verify the legitimacy of direct mail appeals.

New York boasts over 102,000 registered charities, many relying on professional fundraisers to boost their efforts. These fundraisers, while offering expertise, are independent for-profit entities, and the report makes clear that their interests aren’t always aligned with the charities they serve. The OAG Charities Bureau is tasked with oversight, but this report suggests current regulations aren’t enough to prevent widespread exploitation.

The Attorney General’s office offers several tips to avoid scams: demand clear disclosures from telemarketers, verify the legitimacy of organizations soliciting by mail, and research charities online before donating. But the real solution may lie in stricter regulations and increased transparency, ensuring that more “pennies” actually reach the people and causes they’re intended for. This isn’t just about bad business; it’s about exploiting the generosity of New Yorkers and undermining the vital work of legitimate charities.