[A]s the holiday season approaches, Attorney General Bill Sorrell is cautioning Vermonters to be careful reviewing charitable causes, advising those that use outside fundraising companies siphon off large amounts before the gift reaches the desired organization.
“This time of year, many of us look to help those in need or give to a favorite cause,” said 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.”
The vast majority of Vermont non-profit organizations raise money directly from supporters and do not use a third-party to help them raise funds.
Of the 11 Vermont charities that do, the attorney general’s office found that only about 27 percent of donations given to fundraising companies made it all the way to Vermont charities — $195,993 of the $738,754 — with the rest eaten up by the third-party collectors. The office’s numbers came after analyzing data from 255 Vermont fundraising reports between July 1, 2015 and June 30, 2016.
Paid fundraising campaigns in Vermont have diminished significantly in recent years, according to the attorney general. While $1.4 million was collected by these companies in fiscal year 2016, roughly $3 million was collected in 2013.
Sorrell urged Vermonters to question all solicitors about what portion of a donation goes to a charitable organization. The office has set up a website with important information on various charities here, and concerns can be directed to the attorney general’s consumer assistance program at (800) 649-2424.
“Vermonters should feel good about supporting the charities of their choice,” Sorrell said. “But information is vital whenever you hand over money, so be informed, and ask questions if you’re not sure.”
