RALEIGH
North Carolina officials say less than half of the nearly $300 million in charitable donations in the past year went to the charities - the rest went to marketing and fund-raising companies.
Multiple media outlets reported Thursday that the secretary of state's office has released a report showing that only about 40 percent of $282 million donated to charities in the year ending in July went to the charities. That means for every dollar donated to charities between July of 2008 and 2009, less than 50 cents on average went to the charities.
Last year, 60 percent of the money donated went to the charities.
The office tracks only those charities that are required to file reports, including charities in support of police and firefighters. Church and educational charities are exempt from filing reports.
"We were shocked," Secretary of State Elaine Marshall told the Charlotte Observer.
The rest of the money goes to professional fund-raising companies that charities hire to raise money for them.
Nonprofit organization leaders say the recession has prompted marketers and fund raisers to take bigger cuts of the donations this year.
"At one time, when the economy was better, you got 20 percent" of the money raised, the North Carolina Troopers Association told the Raleigh News & Observer. "Now, we're guaranteed 14 percent," the group's president, Ron Crawford, said. That means for every dollar donated, the Troopers take home 14 cents while the fundraising company gets 86 cents.
But some charities say the numbers are misleading. The struggling North Carolina Symphony was rescued from demise in part because of charitable donations procured by a Nevada-based fund-raising firm.
Symphony President David Chambless Worters said that in 18 months, 1,000 new donors pledged about $800,000 to the Charlotte-based symphony thanks to the company's efforts. He said the $300,000 paid in fees was worth it because the symphony couldn't have raised the money otherwise.
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