Vermont Business Magazine As another holiday season arrives, Vermonters’ generous spirits will be on full display, especially their charitable giving. But Vermonters should be careful. Many donations made through paid fundraisers—companies hired to solicit charitable donations—result in a fraction of the gift going to the chosen cause: only about 27 percent for gifts to Vermont-based charities in the latest fiscal year.
“This time of year, many of us look to help those in need or give to a favorite cause,” said Vermont Attorney General Bill Sorrell. “Vermonters should remain aware that if their donations are made through a paid fundraiser, in most cases the bulk of that gift is going straight to the caller, not the charity. Just being aware of this can help folks make decisions that maximize the charitable impact of their dollars.”
Based on data from the 255 reports filed for campaigns conducted between July 1, 2015, and June 30, 2016, paid fundraisers raised over $1.4 million from Vermonters, but the named charities, both local and national, received only about $400,000. The 11 Vermont charities that used paid fundraisers during this time-period received only $195,993 of the $738,754 raised on their behalf – barely more than a quarter out of every dollar given.
Though six of these campaigns involved the sale of goods or services – eg, magazines or concert tickets – the bottom line for the donor’s dollar remains the same: in most cases, 30 percent or less of the total donation went to the charity for charitable purposes.
Paid fundraising activity in Vermont has diminished rapidly over the past three years. The $1.4 million raised from Vermont donors through paid fundraising campaigns in Fiscal Year 2016 represents over a 50% decrease from Fiscal Year 2013.
“Vermonters should feel good about supporting the charities of their choice,” Attorney General Sorrell said. “But information is vital whenever you hand over money, so be informed, and ask questions if you’re not sure.”
The Attorney General’s Office urges Vermonters to:
- Ask all solicitors to explain what portion of a donation goes to support charitable programming and what portion goes to fundraising. Though paid fundraisers are not legally required to answer, they must tell prospective donors where to find such information (see next bullet).
- Check the breakdown of contributions between fundraisers and charities on the Attorney General’s website: at http://ago.vermont.gov/focus/consumer-info/charities.php
- Ensure that those soliciting money over the phone, through mail, or via the internet clearly identify themselves and their employer.
- Report any concerns regarding paid fundraisers to the Vermont Attorney General’s Consumer Assistance Program, 109 State Street, Montpelier, VT 05602-1001, or call (800) 649-2424; (802) 656-3183 within Chittenden County.
Source: Vermont AG Nov 28, 2016