December 14, 2011; Source: Rochester Business Journal | In a report entitled “Pennies for Charity, Where Your Money Goes: Telemarketing by Professional Fundraisers”, New York Attorney General Eric Schneiderman documented that charity telemarketers give, on average, only 37.6% of their gross to the charities for which they raise money. In fact, in
61 of the 564 telemarketing campaigns studied, the charities lost money.
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In 2010 in New York, telemarketers raised a total of over $249 million on behalf of 411 charities according to this report. Approximately 63 percent, or $153 million, was paid to the telemarketers as profits, fees and other costs of the campaigns, leaving charities with less than 37 percent of the total raised.—Ruth McCambridge
