Posted By CotoBlogzz
Rancho Santa Margarita, CA - Data released yesterday by the California
Attorney General show that commercial fundraisers in California raised $338.5
million in 2011, just over half of
which was actually received by charitable organizations. This figure excludes
thrift store operations and vehicle donation programs, which are accounted for
separately.
Supports the argument that the best place to donate is your house of worship.
The data is included in the California Department of Justice’s Annual Report of the results of commercial fundraising campaigns for charities, produced by the Charitable Trusts Section. “This report gives Californians the vital information they need to make educated choices about where to make charitable contributions this holiday season,” Attorney General Harris said. “While commercial fundraisers play a role in supporting charities in California, it is important for donors to know how much of their money will be used to support the charity’s programs, and how much will go to overhead.”
Commercial
fundraisers, who are hired by charities to raise money on their behalf,
typically charge a flat fee for their services or take a percentage of the
contributions they collect. Most charities registered with the Attorney General
do not use commercial fundraisers to raise funds, but do their own, in-house
fundraising.
By law,
commercial fundraisers must register with the Attorney General’s office prior
to fundraising in California and must file annual financial disclosure reports
detailing income and expenses for each fundraising campaign.
The annual
report contains an alphabetical list of charities that hired commercial
fundraisers in 2011, along with the total revenue raised in those campaigns and
the dollar amount and percentage of total funds raised that went to the
charity.
On
average, $172.8 million – or 51.05 percent of the funds raised – went to the
charities. The remainder was retained by the commercial fundraisers as payment
for fees and expenses.
The
Attorney General’s office Guide to Charitable Giving for Donors provides
advice, guidelines and information to help donors make informed decisions about
giving. The guide suggests that donors:
Ask the fundraiser how a
donation will be distributed. Fundraisers are required by law to tell a
consumer this information.
Ask what percentage of donations
will be used to pay for fundraising expenses. This information can better
inform the consumer as to how much of the contribution will go to the cause
versus overhead.
Ask if the fundraiser works for
a commercial fundraiser and is being paid to solicit. If the answer is yes,
then it is likely less of the funds are going to the charity.
Avoid cash donations, as cash
can more easily be diverted to non-charitable purposes and there is no way to
trace it.
Avoid giving credit card
information to a telephone solicitor or in response to a telephone
solicitation.
Learn about a charitable
organization, its activities and its fundraising practices before giving. The
Attorney General’s office maintains a searchable online database on registered
charities and registered professional fundraisers at http://rct.doj.ca.gov/MyLicenseVerification/Search.aspx.
Donors can also check the
websites of the Wise Giving Alliance at http://www.bbb.org/us/charity/
and the American Institute of Philanthropy at http://www.charitywatch.org/.
The Guide to Charitable Giving
for Donors is available online at: http://oag.ca.gov/charities/publications
The full report on commercial
fundraisers can be located here:http://www.oag.ca.gov/charities/publications#fundraisers
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