Charitable Giving in New York: Trends, Challenges, and Tips
Despite a shrinking donor base and rising costs, charities continue to play a vital role in supporting non-profits and advocacy across the state. According to the New York State Attorney General’s Charities Bureau, nearly 1.4 million people in the state claimed over $40 billion in charitable deductions in 2023.
Rise of Professional Fundraisers
Professional fundraisers in New York collected almost $1.5 billion in 2023, with charities receiving about $1.2 billion of that. However, the fundraisers kept about $261 million, or 17%, of the money raised, with some campaigns seeing their take exceeding 50% of the total amount raised. In 46% of all campaigns, charities received less than half of the money raised, and in 16%, expenses exceeded revenue, resulting in a loss of $26 million.
Charity Oversight and Transparency
Laurie Styron, CEO and Executive Director of CharityWatch, emphasizes the importance of charity oversight and transparency. "New York has one of the strongest charity oversight bureaus in the country. Its annual Pennies For Charity report is extremely helpful because it exposes just how expensive this form of fundraising can often be." She warns that donors should be cautious of fundraisers who take a significant cut of the donations, and instead, opt for direct donations to charities or use reputable online platforms.
Online Giving and Donor-Advised Funds
Online giving grew by 12% in 2023, with the Blackbaud Institute reporting that larger donations increased significantly. However, fees for online charity platforms can reach 8% per donation, and donations often go through donor-advised funds (DAFs), which can delay payments or change the ultimate recipient of the donation. DAFs contributed to 62% of fundraising revenues, raising concerns about transparency and whether donations reach their intended purpose.
Volunteers and Small Businesses
Despite fewer volunteers, they still contribute millions of hours to charitable work each year. The American Red Cross, for example, relies on volunteers for 90% of its workforce. Small businesses, which often rely on small individual donations, face a particular challenge, with the drop in individual giving representing an ongoing concern.
Conclusion
In conclusion, while charities continue to play a vital role in supporting non-profits and advocacy, the landscape of charitable giving in New York is complex and evolving. With professional fundraisers taking a significant cut of donations, online giving growing, and donor-advised funds contributing to 62% of fundraising revenues, it is essential for donors to be informed and cautious. The Pennies for Charity report provides valuable insights and tips for making informed decisions.
Frequently Asked Questions
Q: What is the Pennies for Charity report?
A: The Pennies for Charity report is an annual review of charitable giving in New York, published by the New York State Attorney General’s Charities Bureau.
Q: What does the report reveal about charitable giving in New York?
A: The report shows that while total donations increased by 1.9% in 2023, charitable giving couldn’t outrun inflation, and professional fundraisers kept about $261 million of the money raised.
Q: What are some tips for making informed charitable donations?
A: The report advises donors to review the financial reports of charities, be cautious of professional fundraisers, and consider direct donations to charities or reputable online platforms.
Q: How can I check the financial reports of charities?
A: The Pennies for Charity report provides a database where you can check how much of the proceeds make it to the charity.
