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New Report Shows Charitable Giving Campaigns Raised over
$1.7 Billion in 2021, Almost $250 Million More than 2020

Professional Fundraisers Earned Over $460 Million,
More Than a Quarter of Total Charitable Campaign Donations

In advance of Giving Tuesday and the holiday season, New York Attorney General Letitia James today released her annual “Pennies for Charity: Fundraising by Professional Fundraisers” report, which analyzes data submitted to the Office of the Attorney General’s (OAG) Charities Bureau by professional fundraisers on their 2021 charitable fundraising campaigns in New York. The report looks at trends in the sector, provides guidance and tips for donors, and gives charities information on fundraisers’ performance. This year’s report found that professional fundraisers received over a quarter of every dollar donated to charities that employed them in 2021 in fees and expenses — a total of more than $460 million. Analyzing 658 campaigns conducted by professional fundraisers in 2021, the report finds that charities received 73 percent of donations, in line with the year prior and a small increase from 2019. Professional fundraisers are outside, for-profit organizations often hired by charities to run campaigns. 

“When New Yorkers make the generous choice to give to a charity, they trust that their money will be used responsibly,” said Attorney General James. “In advance of the holiday season and Giving Tuesday tomorrow, New Yorkers can rest assured that my office is working every day to protect their wallets and deliver the transparency they so rightly deserve. I encourage anyone planning to donate this season to consult our tips for charitable giving to ensure their thoughtful gift goes to the right place.” 

New York is home to many diverse charitable organizations and institutions, which like all parts of our society, faced many challenges during the coronavirus pandemic. Despite the pandemic’s continuing economic impact and limitations on in-person events, donations rose to over $1.7 billion in 2021 — an increase of almost $250 million from 2020 and over $400 million from 2019 pre-pandemic contributions. Other report findings include:  

• In 276 campaigns — 42 percent — charities received less than 50 percent of funds raised, with professional fundraisers retaining the rest. 
• In 96 campaigns — 15 percent — expenses exceeded revenue and cost charities over $10 million. This is fewer cases than last year for both findings. 

This year’s Pennies for Charity report includes information from reports filed with OAG’s Charities Bureau by professional fundraisers for charity campaigns conducted in 2021. Professional fundraisers must register with OAG and their financial reports must break down the campaign’s earnings and expenses. The report and the searchable Pennies for Charity database containing the findings of those reports are posted on the Charities Bureau website.

The report also lays out tips for donors to follow before donating over the phone, through mail, or online to ensure that their contributions reach the causes they intend to support. The report is linked above for a full guide, but important tips to keep in mind include:   

• If you are contacted by a telemarketer, ask questions to make an informed decision: New York law requires telemarketers soliciting for charities to make certain disclosures to potential donors and prohibits them from making false, misleading, or deceptive statements to contributors. Telemarketers are required to tell potential donors their names, which professional fundraiser employs them, and if the telemarketer is getting paid. Donors may also ask what percentage of their donation will go to the fundraiser for fees and expenses. 
• If you receive a direct mail charitable appeal, verify the soliciting organization: Does the organization have a name that sounds like a well-known charity? Double-check — is it the one you think it is? Does the mailing claim to follow up on a pledge that you do not remember making? Does it clearly describe the programs that the charity plans to fund with your donation? 
• If you are donating online, do your research first: Donating online or via an app is convenient for donors and can be cost effective for a charity. But before hitting “Send,” donors should check whether a campaign is legitimate. Below are steps to take before donating online:
  • Some online platforms that host groups and individuals soliciting for causes do not obtain permission from charities, or vet those charities who use their service. Donors should only give to campaigns conducted by people whom they know. Donors also should check what fees they will be charged and make sure that the charity has given its permission for the use of its name or logo. The site or the charity should confirm that the charity has approved the campaign.
  • When donating online, make sure the website is secure: The web address should start with “https.” Unless the charity uses a separate payment site, the web address should match that of the organization that will receive the donation.
  • Be wary of email solicitations that ask you to click a link or open attachments. These could be phishing scams that try to trick you into giving out your credit card number, Social Security number, or other confidential information.
  • More information about OAG’s Charities Bureau and organizations it regulates may be found online. If you believe an organization is misrepresenting its work or that a scam is taking place, please contact OAG’s Charities Bureau at Complaints@ag.ny.gov or (212) 416-8401.

Attorney General Karl A. Racine today announced that his office succeeded in stopping the Janet Keenan Housing Corporation, which provides affordable housing to low-income DC residents, from attempting to sell their property for private purposes in violation of District non-profit law.

“DC is in the midst of a housing crisis and longtime Black, brown, and low-income residents are being pushed out of the city they call home. Organizations that claim not for profit status are granted favorable tax benefits in exchange for their promise to fulfill their non-profit mission. In this case, the Janet Keenan Housing Corporation falsely said it was focused on providing needed affordable housing, when, in fact, the company prioritized profits in housing over genuine affordable housing work,” said AG Racine. “Most District non-profits follow the law, but when a tax-exempt entity—like the Janet Keenan Housing Corporation—acts contrary to its stated mission and hurts the DC residents it is meant to support, my office will use all available tools to stand up for District tenants.”

In response to the Office of the Attorney General’s (OAG) request for a Temporary Restraining Order (TRO), the court paused the property sale while it considers the Janet Keenan Housing Corporation’s request for approval to sell its property. In addition to the request for emergency relief, OAG also filed a complaint against Janet Keenan Housing Corporation for violations of the District’s Nonprofit Corporation Act (NCA) and common law.

Background on OAG’s Complaint
Janet Keenan Housing Corporation (JKHC) is a nonprofit organization with a stated mission to “preserve and promote affordable housing in the District of Columbia”. They are exempt from taxation and are required by law to operate solely for their charitable purpose.

In 2000, JKHC purchased a property at 1304 Euclid Street NW which had been used as affordable housing for low-income residents since the 1980s. JKHC committed to continue to use the house for this purpose and, since then, has operated the property as a self-run group home for low-income residents, consistent with its charitable mission. Six people currently live at the home.

On September 12, 2022 JKHC notified residents that they were planning to sell the property. By September 21 the house was under contract and the sale was scheduled to close on October 7.

OAG learned that JKHC was selling the property without the condition that the new owner maintain its charitable purpose. The house is a charitable asset and, under the District’s Nonprofit Corporation Act (NCA), non-profits must receive prior authorization from the Superior Court and notify the Attorney General in order to sell or otherwise divert the property from its charitable purpose. OAG warned JKHC that an unauthorized transfer of the property would violate the law, but JKHC moved forward with its efforts to sell.

Allegations against JKHC
By trying to sell the property and failing to ensure that it would maintain its charitable purpose without seeking prior court approval, JKHC is acting contrary to its stated charitable mission in violation of the NCA and common law on three counts:

• Unauthorized diversion of a charitable asset;
• Abusing or exceeding their authority; and
• Acting contrary to their nonprofit purpose.

Additionally, JKHC has violated the NCA and common law by allowing the same person, John Keenan, to serve as both president and treasurer of the organization.

With this lawsuit, OAG is seeking to:

• Stop JKHC from selling or diverting the property from its charitable purpose;
• Appoint a receiver or other court-supervised official to ensure the property continues to be used as housing for low-income District residents and to reform JKHC’s board of directors; and
• Create a trust or other form of monetary relief over any non-profit funds received in violation of District law.

A copy of the complaint is available here.

The case is managed by Assistant Attorney General Tabitha Bartholomew, under the supervision of Public Integrity Section Chief Adam Gitlin. Investigator Willie Haynes also assisted in the investigation.

OAG’s Nonprofit Enforcement Work
Under AG Racine, OAG has invested resources to expand its capacity to enforce District laws governing nonprofits. OAG has litigated and resolved actions against several charter schools and the president of a nonprofit that owned an affordable housing building for mismanagement of nonprofit funds. In May 2022, AG Racine clawed back $750,000 in misspent nonprofit funds from the Trump Organization and Presidential Inaugural Committee. The office has also sued several organizations for misuse of charitable funds, including a local fraternity and the NRA Foundation. Additionally, OAG has obtained an order that District nonprofit Howard Theatre Restoration, Inc. dissolve for failing to function in support of the District’s historic Howard Theatre, investigated the closure of Providence Hospital to ensure nonprofit assets were not improperly removed from the District, and intervened to resolve a board dispute at an internet freedom organization. 

If you suspect that a nonprofit doing business in the District of Columbia is violating District law, please contact OAG at (202) 727-3400.