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COURTESY MASS. ATTORNEY GENERAL’S OFFICE
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BOSTON – Of every dollar raised last year by firms or individuals registered with the Bay State as professional fundraisers, only 35 cents actually made it to charity, according to the latest data from the Mass. Office of the Attorney General.
“Most charities rely on donations from the public to accomplish their goals,” the Attorney General’s Office (AGO) noted in its report for 2007. “Some charities raise funds on their own, while others hire professional solicitors to raise funds on their behalf.”
Statewide last year, 79 professional solicitors registered 621 such fundraising campaigns on behalf of a wide variety of nonprofit organizations, but 13 percent of those registrations never resulted in fundraising campaigns.
Those campaigns that actually did take place raised a grand total of nearly $284.55 million, the office found. Of that money, just over $100.77 million, or 35.42 percent, reached the nonprofits themselves.
Results varied widely. Best returns to charities by professional solicitors were 100 percent, by Scott Neely, in a campaign that raised $150,000 for the New England Medical Center Hospitals Inc.; an average of 92.50 percent in various campaigns by Coinstar Inc.; an average of 89.18 percent in campaigns by IDT Contact Service Inc.; and an average of 76.34 percent for campaigns by DCM Inc. Worst returns to charities were the negative 91.78 percent achieved by NOVO 1 Inc., in a campaign for the Anti-Defamation League of B’nai B’rith that raised $7,593 but resulted in a net loss to the charity of $6,969; negative 53.43 percent by Direct Response Inc., in a campaign that resulted in a $36,505 net loss for the Gay & Lesbian Alliance Against Defamation; and negative 33.59 percent in a Future Market Telecenter Inc. campaign that raised more than $6.26 million but resulted in a net loss of more than $2.01 million for the American Diabetes Association.
Statewide, the total amount raised by professionals and the percentage passed on to charities both declined compared with the year before, the Attorney General’s Office added. In 2006, professional solicitors raised about $361 million – roughly $76 million more than in 2007 – and passed on to charities about $160 million, or 44 percent of the total.
The report did not speculate on whether the decline might be attributable to a change in the fundraising environment or in local nonprofits’ fundraising practices.
It did suggest, however, that before making a donation, potential contributors “should ask how much of the donation will actually go the charity and how much is going to the professional fundraiser.” They also should request the exact name of the charity, and a clear description of what it does, the office said. “Often, charities have similar names and potential donors should clarify if there is any relationship between charities that have similar names.”
Additional information for potential donors is available in two reports by the state Attorney General’s Office: “Donating Dos and Don’ts: A Guide to Charitable Giving” and “The Attorney General’s Guide for Donors.”
For news and information from the Mass. Office of the Attorney General, including the full state “Report on Professional Solicitations for Charity in 2007,” visit www.mass.gov.