Charities

Attorney General Kamala D. Harris Issues Consumer Tips on Donating Wisely this Holiday Season

November 30, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

En Español 

SAN FRANCISCO – With the holiday season and the end of the tax year approaching, Attorney General Kamala D. Harris today issued consumer tips on how Californians can make the most of their charitable giving and avoid scams.

In 2014, Americans gave more than $350 billion to charities and nonprofit organizations. This year, many Californians will look to help the less fortunate or support a favorite cause by donating to a charity. Unfortunately, with so much money in play, scammers will continue to look for ways to prey on people’s generosity. Attorney General Kamala D. Harris offers the following tips for Californians to make sure their charitable giving will benefit worthy causes and not scammers.

TIPS FOR DONATING WISELY

Research the Charity

The number one tip for consumers this holiday season is to research the charity you are considering donating to and make sure it is legitimate and trustworthy. Don’t assume that charity recommendations on Facebook, blogs, or other social media are legitimate.

Private watchdog organizations have created spending standards for charities and issued reports based on those standards. These are great resources for consumers to use in researching your intended charities. Three such organizations are: Wise Giving Alliance (www.give.org), Council of Better Business Bureaus’ Foundation (www.bbb.org), and American Institute of Philanthropy (www.charitywatch.org).

To check the status of a charity, visit http://rct.doj.ca.gov/Verification/. Other sites that can provide helpful information in checking the status of your charity are: www.charitynavigator.org, or www.give.org. For more detailed information and tips, check the Attorney General’s Guide to Charitable Giving for Donors at: http://oag.ca.gov/charities/publications.

If a solicitor contacts you on behalf of a charity, ask if he or she works for a commercial fundraiser, and verify whether that the commercial fundraiser is registered with the Attorney General’s Registry of Charitable Trusts, as it is unlawful for unregistered commercial fundraisers to solicit donors in California. You can also check to see how much a commercial fundraiser raised for the charity in the past by reviewing the Attorney General’s Commercial Fundraising Reports, which summarize by year the results of the charitable solicitation campaigns conducted in California by for-profit fundraisers. Historical figures show that a solicitation campaign conducted by a commercial fundraiser returns to the charity, on average, about 50 percent or less of the contributions received. A commercial fundraiser retains the remainder in the form of fees and expense reimbursements. To check these publications visit: http://oag.ca.gov/charities/publications

Other Helpful Tips for Donors

  • A great way for donors to select worthwhile charities is to first volunteer with a local charity. This helps provide first-hand knowledge about programs that benefit your community or cause.
  • You may want your donation used for a specific program or purpose within a charity. If a website has a “donate” button, check to see if you can designate a specific purpose for your donation. If you can’t, contact the charity to be sure your donation will be spent for the purpose you intend.
  • If a solicitor contacts you on behalf of a charity, ask if he or she works for a commercial fundraiser, whether they are registered with the California Registry of Charitable Trusts, and ask what percentage of donations go directly to the charity for its charitable program and how much is spent on fundraising and administrative expenses. You may prefer to contact the charity directly to make a secure donation. If a solicitor tells you the donation is for your local police, firefighter, or other public safety agency, check directly with the law enforcement agency to avoid a potential scam. 
  • If you receive an e-mail or text message asking for a donation to a charity, contact the charity directly and confirm that the request is legitimate.
  • Make charitable contributions directly on a charity’s website when possible. If donating by check, use the full name of the charity rather than initials or an abbreviation. Do not give your credit card number to a telephone solicitor or in response to any unsolicited phone call you receive.
  • Charitable gifts-in-kind, such as food or clothing given directly to a charity, may help scammers mask exorbitant executive compensation or administrative costs if they falsely inflate the value of the goods in IRS filings. Research the charity recipient of gifts-in-kind, just as you would for cash gifts.
  • Be wary of car donation solicitations. Car donations often result in minimal returns to charities because of the high cost of advertising and other expenses associated with marketing the vehicles for re-sale. If you do decide to donate to a car donation fundraiser or charity, ask that they inform you of, and provide records on, every donation designated to you. Call the charity that was supposed to benefit from your car donation to ensure that they received your donation.

ADDITIONAL CONSUMER RESOURCES

The California Attorney General’s Guide to Charitable Giving: http://oag.ca.gov/sites/all/files/agweb/pdfs/charities/publications/CharitiesSolicitation.pdf

Consumers who believe they are a victim of a charitable giving scam can file a complaint with the Department of Justice by using the following form: http://oag.ca.gov/sites/all/files/agweb/pdfs/charities/charitable/ct9.pdf

Attorney General Kamala D. Harris Applauds New Law to Increase Commercial Charitable Fundraiser Transparency and Accountability

September 21, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SACRAMENTO - Attorney General Kamala D. Harris released the following statement today in response to Governor Jerry Brown’s signing of Assembly Bill 556, legislation authored by Assemblymember Jacqui Irwin (D-Thousand Oaks) and sponsored by Attorney General Harris that will help increase consumer confidence in charitable giving.

“I applaud Governor Brown for signing AB 556, our legislation to increase transparency and accountability in charitable fundraising,” said Attorney General Harris. “This law empowers Californians to donate wisely by providing clear information about how charities use their donations. I thank Assemblymember Irwin for introducing the legislation and for her leadership on this important issue.”

AB 556 closes loopholes in disclosure laws for paid commercial fundraising campaigns by modifying the definition of “commercial fundraiser” to include fundraising counsel that use deceptive tricks to evade registration and fundraising transparency requirements. Fundraising campaigns involving these for-profit companies will now have to disclose whether a portion of donor contributions will be directed to the paid fundraiser.  The bill also expands the existing 10-year statute of limitations for charitable enforcement cases to include for-profit fundraising firms and other third parties who engage in misconduct, extending the window of time to investigate and prosecute violations of charitable law by for-profit fundraisers.

“I’m pleased that Governor Brown signed AB 556, a collaborative effort with Attorney General Kamala Harris to increase transparency in charitable donations,” said Assemblymember Irwin. “This bill will support consumer confidence for the more than 70,000 active nonprofit organizations doing great work in California.”

The bill was supported by a diverse coalition of nonprofits operating in California and received unanimous support in both the Assembly and the Senate.

Attorney General Harris’ office recently released a report summarizing the results of charitable solicitation campaigns conducted by commercial fundraisers in 2013, which found that commercial fundraisers collected approximately $361.5 million in charitable contributions in 2013, an increase of $67.2 million over the amount reported in 2012. Read the report here: https://oag.ca.gov/sites/all/files/agweb/pdfs/charities/publications/2013cfr/cfr2013.pdf.

Attorney General Kamala D. Harris and Assemblymember Jacqui Irwin Announce Legislation to Improve Transparency and Accountability for Commercial Charitable Fundraisers

February 24, 2015
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SACRAMENTO - Today, Attorney General Kamala D. Harris and Assemblymember Jacqui Irwin (D-Thousand Oaks) unveiled legislation aimed at maintaining consumer confidence in charitable giving.  The bill would close a loophole in disclosure requirements for paid commercial fundraising campaigns and include for-profit fundraising firms and other third parties who engage in misconduct in the Attorney General’s 10-year statute of limitations.

“Californians should have complete confidence that the donation they make to a charitable organization will go toward the cause they support, and feel secure knowing their gift won’t be diverted to the pockets of a third-party, for-profit fundraiser,” said Attorney General Harris.  “I thank Assemblymember Irwin for standing with me to increase transparency and empower Californians with the information they need to donate wisely.”

Assembly Bill 556 closes a loophole in existing charitable giving transparency requirements that currently allows third parties to solicit funds from donors without disclosing whether a portion of their gift will be diverted to a paid company by establishing their operations as “fundraising counsel” instead of “commercial fundraisers.”  Attorney General Harris’ office recently released a report summarizing the results of charitable solicitation campaigns conducted by commercial fundraisers in 2013, which reveals the alarming extent to which charitable donations are often diverted to for-profit companies.

For-profit third party fundraisers played a role in a recent charity enforcement case, People v. Help Hospitalized Veterans, where a charitable fraud scheme included directing nearly three-quarters of the gross revenue made to for-profit fundraising campaigns in which the charity’s “fundraising counsel” was not required to disclose in their direct mail pieces that a paid professional fundraiser was profiting from each donation.

In addition, because of a gap in the Government Code’s statute of limitations for charitable misconduct lawsuits, not all parties responsible for the fraud in the Help Hospitalized Veterans case were able to be held accountable.  AB 556 will expand the statute to include enforcement actions against commercial fundraisers, fundraising counsel, and other third party entities that aid and abet the exploitation of charitable assets.  This ten year window is often necessary in such cases, which are complex, fact-intensive, and cover misconduct occurring over an extended period of time.

“As a city councilmember and board member of local nonprofits in Ventura County, I saw the enormous positive impact that charities have on our communities,” said Assemblymember Jacqui Irwin (D-Thousand Oaks). “AB 556 will help keep bad behavior by a few from undermining the confidence that Californians have in the more than 70,000 active nonprofit organizations doing great work in California.  I commend Attorney General Kamala Harris for her work on this issue and look forward to working with her on AB 556.”

In late 2014, a comprehensive report on California’s non-profit sector, Causes Count, was issued by the California Association of Nonprofits (CalNonprofits), a “chamber of commerce” representing 9,200 nonprofits. According to the report, California’s charitable organizations contribute 15 percent — or one-sixth — of California’s Gross State Product.

“California nonprofits are trusted institutions,” said Jan Masaoka, CEO of CalNonprofits. “We support legislation like AB 556 that closes gaps in the law that no legitimate charity needs to exploit to fulfill its mission.  We appreciate that Attorney General Harris and Assemblymember Irwin support the non-profit sector’s role in California as an economic driver, an innovation leader, and a champion for hope and opportunity, always looking toward a better future.”

Legislative text available here.

View the Attorney General’s report on charitable solicitation campaigns conducted by commercial fundraisers here.

Read CalNonprofits’ Causes Count report here.

Assemblymember Irwin’s Website: www.asmdc.org/irwin

Attorney General Kamala D. Harris Encourages Californians to Shop and Donate Wisely This Holiday Season

December 2, 2014
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SAN FRANCISCO – Attorney General Kamala D. Harris today issued tips on how Californians can protect themselves from identity theft and make the most of their charitable giving on Giving Tuesday and throughout this holiday season.

Tips for safe shopping:

  • Review your bank and credit card statements frequently for unusual and unfamiliar transactions.
  • In the event of a security breach involving your credit card, monitor your account and contact your bank promptly if you see any suspicious transactions.
  • If the security breach involves your debit card, the best way to protect yourself is to cancel the card immediately and get a replacement with a different number.
  • Try to avoid making purchases in free Wi-Fi hotspots, such as a coffee shop, which can put your passwords and other information at risk.
  • Shop on secure websites. One indicator of a secure website is the presence of a yellow padlock icon in the browser bar. Another indicator is ‘https’ in the web address.
  • Never send sensitive personal or financial information, such as a social security or bank account number, through e-mail. Legitimate companies will not ask you to do so because it is not a secure way to transfer sensitive information.
  • If you are receiving text messages on your cell phone saying you have won a prize or gift card, do not click on the link in the message – it is most likely a scam and may install a virus on your phone.
  • Know the return policies of the retailers you shop with before you leave the store or conclude an online transaction. Many retailers will give you a refund if you have a receipt and your return is prompt, but some may only give store credit. Ask a clerk if the policy is not posted at the register.

Tips for donating wisely:

  • The best way for many donors to select worthwhile charities is to work with a local charity as a volunteer. This helps provide first-hand knowledge about programs that benefit your community.
  • Do your research before giving. Charities operating in California are required to register with the Attorney General’s Registry of Charitable Trusts.  You can review the charity’s purpose and financial records at www.oag.ca.gov/charities.
  • Don’t assume that charity recommendations on Facebook, blogs, or other social media have been vetted. Research the charity yourself.
  • If you are contacted by a solicitor on behalf of a charity, ask if he/she works for a commercial fundraiser and what percentage of donations goes directly to the charity. You may prefer to contact the charity directly to make a donation.
  • Don’t fall for pressure tactics and ask questions before donating. You have the right to reject the appeal and if you feel pressured or threatened, just hang up.
  • If you receive an email or text message asking for a donation to a charity, contact the charity directly and confirm that the request is legitimate.
  • Make charitable contributions directly on a charity's website. If donating by check, use the full name of the charity rather than initials or an abbreviation. Do not give your credit card number to a telephone solicitor or in response to any unsolicited phone call you receive.
  • Protect your identity.  Never give your social security number or other personal information in response to a charitable solicitation.  Never give out credit card information to an organization unfamiliar to you. Look at the charity’s privacy policy and learn who the charity might share your information with before you provide it.

Additional consumer tips, information, and lists of resources are available at:

 

Attorney General Kamala D. Harris Announces New Leadership, Restitution for Help Hospitalized Veterans Charity

September 6, 2013
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced a settlement in People v. Help Hospitalized Veterans, et al that forces all Help Hospitalized Veterans officers and directors named as defendants to resign and requires payment of $2.5 million in restitution.

In August 2012, Attorney General Harris sued the charity’s executive officers and directors for improperly diverting funds intended to support programs serving veterans and active-duty military, including providing arts and craft kits to hospitalized veterans. Executives used these funds to pay for fundraising and excessive compensation.

“Veterans face many challenges when they return home – it’s unconscionable that Help Hospitalized Veterans officials misused charitable money intended for those who served and have sacrificed for our country,” said Attorney General Harris. “I am pleased this settlement forces these officials to resign, in addition to paying restitution.”

The lawsuit alleged that the directors and officers of Help Hospitalized Veterans breached their fiduciary duty by wasting its charitable assets on such things as golf memberships and a condominium for use by executives to fundraise, and authorized excessive compensation for the group’s former president, Roger Chapin, and its current president, Michael Lynch. 

Under the settlement, Help Hospitalized Veterans will receive $2 million from the Chapin Trust. Chapin passed away in August. Lynch will retire from his position as president of Help Hospitalized Veterans and resign from the board. After a transition period, he and the four directors named in the suit – Thomas Arnold, Robert Beckley, Gorham L. Black III, and Leonard Rogers -- will be permanently barred from acting as an officer, director, fiduciary or trustee of any California charity.

The directors will resign on a rolling basis, to facilitate an orderly transition to new management. New board members will be subject to the approval of the Attorney General’s office.

In addition, the charity’s director and officer liability insurance policy will pay $450,000 to Help Hospitalized Veterans in restitution, on behalf of the defendant officers and directors.

Controversy around the performance of veteran’s charities like Help Hospitalized Veterans was brought to the public’s attention in 2007 by Rep. Henry A. Waxman who, as Chairman of the House Oversight and Government Reform Committee Hearings, held hearings into their fundraising practices and overhead.   

A copy of the settlement document is attached to this press release at www.oag.ca.gov

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PDF icon Help Hospitalized Veterans3.75 MB

Attorney General Kamala D. Harris Releases Report Detailing Charitable Solicitation Campaigns by Commercial Fundraisers

November 29, 2012
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SACRAMENTO -- Attorney General Kamala D. Harris today released data showing that commercial fundraisers in California raised $338.5 million in 2011, just over half of which was actually received by charitable organizations.
 
The 51 percent of donated funds going to charities using a professional fundraiser represents an increase from the 2010 average of 44.4 percent. 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.

According to reports filed with the Attorney General’s office, commercial fundraisers who operate in California collected $338.5 million in donations in 2011. This figure excludes thrift store operations and vehicle donation programs, which are accounted for separately.

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 also publishes the Guide to Charitable Giving for Donors that provides advice, guidelines and information to help donors make informed decisions about giving. The guide suggests that donors:

  1. Ask the fundraiser how a donation will be distributed. Fundraisers are required by law to tell a consumer this information.
  2. 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.
  3. 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.
  4. Avoid cash donations, as cash can more easily be diverted to non-charitable purposes and there is no way to trace it.
  5. Avoid giving credit card information to a telephone solicitor or in response to a telephone solicitation.
  6. 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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Attorney General Kamala D. Harris Releases Report Detailing Charitable Solicitation Campaigns by Commercial Fundraisers

November 29, 2011
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SACRAMENTO --- Attorney General Kamala D. Harris today released data showing that commercial fundraisers in California raised $362.9 million in 2010, of which charitable organizations received less than 45 percent.

This represents an increase from the 2009 total of less than 43 percent. The data is included in the California Department of Justice’s Annual Report of Commercial Fundraisers, produced by the Charitable Trusts Section.

“The data in this report allows donors to make informed choices this holiday season,” Attorney General Harris said. “Commercial fundraisers play a role in supporting charities in California, but it’s 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 fundraising expenses.”

Among numerous other tables, the annual report contains an alphabetical list of charities that hired commercial fundraisers in 2010 – along with the total revenue raised in those campaigns and the dollar amount and percentage of total funds raised that went to the charity.

Commercial fundraisers, who are hired by charities to raise money on their behalf, typically charge a flat fee for their services or a percentage of the contributions they collect.

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.

According to reports filed with the Attorney General’s office, commercial fundraisers collected $362.9 million in donations in 2010. This figure excludes thrift store operations and vehicle donation programs, which are accounted for separately.

On average, $161.1 million – or 44.38 percent of the funds raised – went to the charities. The remainder was retained by the commercial fundraisers as payment of fees and expenses.

The Attorney General’s office also publishes the Guide to Charitable Giving for Donors that provides advice, guidelines and information to help donors make informed decisions about giving. The guide suggests that donors:

1. Ask the solicitor how a donation will be distributed.
2. Ask what percentage of donations will be used to pay for fundraising expenses.
3. Ask if the solicitor works for a commercial fundraiser and is being paid to solicit.
4. Avoid cash donations.
5. Avoid giving credit card information to a telephone solicitor or in response to a telephone solicitation.
6. 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? facility=Y. 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://ag.ca.gov/charities/publications.php#guides.

The Attorney General’s 19th annual report on commercial fundraisers can be found at
http://ag.ca.gov/charities/publications/2010cfr/cfr2010.pdf.

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Attorney General Kamala D. Harris Encourages Californians to Safeguard Donations During National Breast Cancer Awareness Month

October 21, 2011
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SAN FRANCISCO --- Attorney General Kamala D. Harris today issued a consumer alert with tips on how Californians can make safe, informed donations this October, which is National Breast Cancer Awareness Month.

Attorney General Harris offers the following five tips to the public on how to avoid “sound-alike” organizations and scam artists that use high-volume donation periods to prey on the goodwill of Californians.

1. Avoid giving your credit card number to a telephone solicitor. Avoid giving cash to an individual or responding to an e-mail solicitation. Instead, seek out known organizations and give directly by calling the organization, visiting its official website, or mailing a check to the listed address.

2. Research an organization before you donate by visiting:
- California Attorney General’s Registry of Charitable Trusts, http://oag.ca.gov/charities
- Better Business Bureau’s Wise Giving Alliance, www.give.org
- Charity Navigator, www.charitynavigator.org

3. Learn about an organization by asking the right questions: Does the organization only support research? Does it fund community health programs? How are donations used? What percentage of donations is used for charitable activities?

4. Avoid generic claims like “Supports Breast Cancer Programs,” and look for a name, label, or logo that you recognize and can verify.

5. Ask the organization not to store your credit card information.

For additional tips on charitable giving, go to http://ag.ca.gov/charities/charit_giving.php.

Californians who believe they have been victimized by a fraudulent charitable solicitation should file a complaint with the Attorney General’s Registry of Charitable Trusts at http://ag.ca.gov/charities.php.

Attorney General Kamala D. Harris Encourages Donations to Japanese Relief Efforts But Warns of Charity Scams

March 16, 2011
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND -- Attorney General Kamala D Harris today encouraged Californians to make charitable donations to help victims of the devastating earthquake and tsunami in Japan but warned citizens to beware of scams posing as charities that sometimes prey on the goodwill of California donors during times of tragedy.

Attorney General Harris offers the following tips on how to give wisely if solicited to help disaster relief efforts, in order to assure that donations are used as the donor intends:

1. Carefully review disaster-relief appeals before giving. In times of disaster, many 'sound-alike' organizations and sham operations solicit donations.

2. Make sure the charity is registered in the Attorney General's Registry of Charitable Trusts. Registration does not guarantee that a charity is effective, but it is an important indicator. A searchable database is available at http://ag.ca.gov/charities.php.

3. Ask what percentage of your donation will be used for charitable activities that directly help victims.

4. Avoid donating through e-mail solicitations. Clicking on an e-mail may lead you to a website that looks authentic but is established by identity thieves seeking to obtain money or personal information.

5. Only provide your credit card information once you have reviewed all information from a charity and verified its credibility. Ask the organization not to store your credit card information.

6. Do not give cash. Write checks payable to the charitable organization, not a solicitor.

7. Take action on your own rather than responding to solicitations. Seek out known organizations and give directly, either by calling the organization, using the organization's official website, or mailing a check to the address listed on the organization's website.
The Attorney General's Office regulates charities and their for-profit fundraisers in order to prevent the misuse of charitable donations.

For additional tips on charitable giving, go to http://ag.ca.gov/charities/charit_giving.php. Information on national charities is available from the Better Business Bureau's Wise Giving Alliance at 800-575-4483 or www.give.org.

Californians who believe they or others have been victimized by fraudulent charitable solicitation can file a complaint online with the Attorney General's Registrar of Charitable Trusts at http://ag.ca.gov/charities.php.

Brown Releases Report Detailing Use of Funds Raised by Commercial Fundraisers

December 23, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SACRAMENTO — Attorney General Edmund G. Brown Jr. today released his office’s annual report on commercial fundraisers, which finds that while commercial fundraisers in California raised $391.5 million in 2009, charitable organizations received less than 43% of those funds.

“This report allows donors to make informed choices in their charitable giving,” Brown said. “Some commercial fundraisers are effective at generating millions for worthwhile charities but many others divert the majority of the donations to overhead.”

Among numerous other tables, the annual report contains an alphabetical list of charities that hired commercial fundraisers in 2009 – along with the total revenue raised in those campaigns and the dollar amount and percentage of total funds raised that went to the charity.

Commercial fundraisers, who are hired by charities to raise money on their behalf, typically charge a flat fee for their services or a percentage of the contributions they collect.

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.

According to reports filed with Brown’s office, commercial fundraisers collected $391.5 million in donations in 2009. This figure excludes thrift store operations and vehicle donation programs, which are accounted for in a supplemental report.

On average, $166.8 million – or 42.61% of the funds raised – went to the charities. The remainder was retained by the commercial fundraisers as payment of fees and expenses.

Brown’s office also publishes the Guide to Charitable Giving for Donors that provides advice, guidelines and information to help donors make informed decisions about giving. The Guide suggests that donors:

1. Ask the solicitor how a donation will be distributed.
2. Ask what percentage of donations will be used to pay for fundraising expenses.
3. Ask if the solicitor works for a commercial fundraiser and is being paid to solicit.
4. Avoid cash donations.
5. Avoid giving credit card information to a telephone solicitor or in response to a telephone solicitation.
6. Learn about a charitable organization, its activities and its fundraising practices before giving. Donors can Brown’s office maintains a searchable online database on registered charities at http://rct.doj.ca.gov/MyLicenseVerification/Search.aspx?facility=Y, and on registered commercial fundraisers at http://cfr.doj.ca.gov/. Donors can also check the Web sites 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 is available online at http://ag.ca.gov/charities/publications.php#guides .

The Attorney General’s annual report on commercial fundraisers, currently in its 18th year of publication, can be found at http://ag.ca.gov/charities/publications.php#commercial_fundraisers .

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