Attorney General James Releases Annual “Pennies for Charity” Report

 

New Report Shows Charitable Giving Campaigns Raised Nearly $1.5 Billion in 2023, An Increase of $5.8 Million from 2022

Professional Fundraisers Retained 17 Percent of All Charitable Campaign Donations, Down From 23 Percent in 2022

In advance of the holiday season, New York Attorney General Letitia James released her annual “Pennies for Charity: Fundraising by Professional Fundraisers” report. The report analyzes data from 2023 charitable fundraising campaigns submitted to the Office of the Attorney General’s (OAG) Charities Bureau by professional fundraisers to protect New Yorkers’ wallets and ensure both donors and charities who choose to work with fundraisers have all the information they need to make informed decisions. The report provides guidance and tips for New York donors, examines trends in the nonprofit sector, and shares details about fundraisers’ performance.

"New Yorkers have a proud tradition of giving and they deserve to know that their hard-earned donations are being used responsibly,” said Attorney General James. “I encourage everyone to consult my office’s tips for charitable giving before making donations this holiday season, and my office will continue to protect donors and support the critical work of nonprofit and charitable organizations across our state.”

Professional fundraisers are outside, for-profit contractors often hired by charities to run campaigns. This year’s report found that in 2023, professional fundraisers received nearly a fifth of every dollar donated to the charities that hired them — a total of more than $261 million in fees and expenses. An analysis of 581 campaigns conducted by professional fundraisers in 2023 found that charities received 83 percent of donations, a notable increase from the 77 percent return in 2022.

New York is home to many diverse charitable organizations and institutions, with more than 98,000 charities registered with the OAG Charities Bureau. Many charities choose to contract with for-profit professional fundraisers, who can bring expertise in raising money from a variety of donor groups. Professional fundraisers must register with the Charities Bureau and report on their charitable campaigns, including the campaigns’ earnings and expenses. The 2024 Pennies for Charity report is based on analysis of professional fundraisers’ 2023 financial results.

The report found that in 2023, New Yorkers’ charitable giving increased by $5.8 million from 2022. There were also nine more charitable fundraising campaigns in 2023 than there were in 2022. Other report findings include: 

• In 46 percent of the campaigns, charities received less than 50 percent of funds raised, with professional fundraisers retaining the rest. 
• In 16 percent of the campaigns, expenses exceeded revenue and cost charities more than $26 million. While the number of such campaigns decreased from last year’s Pennies for Charity report, the total cost for charities more than doubled from the $11 million reported in 2022.

The report and the searchable Pennies for Charity database containing the results of specific campaigns are posted on the Charities Bureau website.

The report also includes tips for donors to follow before donating over the phone, by mail, or online to ensure that their contributions reach the causes they intend to support. 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.
• Some online platforms that host groups and individuals soliciting for causes do not obtain permission from charities, or vet those charities that use their service. Donors should only give to campaigns conducted by people 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 charity’s 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.
• Use the OAG Pennies for Charity database to review a charity’s fundraising track record. It will show you what percentage of a professional fundraiser’s campaign went to the charity. If a charity frequently receives only a small percentage of funds raised, you may want to look further into how well that charity manages its fundraising and accomplishes its mission. You can also use OAG’s searchable registry to look up charities' financial reports.
• 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.

NYC Department of Environmental Protection Launches Program to Upgrade Automatic Water Meter Reading Devices Citywide

 

Upgrades, Beginning in Greenpoint Neighborhood, Will Ensure That Property Owners Receive Real Time Information About Their Water Use to Help Conserve Water; Project Will Also Ensure Reliable, Accurate Water Bills

The New York City Department of Environmental Protection (DEP) announced the start of a program to upgrade more than 600,000 Automatic Meter Reading (AMR) devices across the city over the next three years. The AMR device is the small gray box attached to the exterior of a property that wirelessly transmits water consumption readings from the water meter to DEP. This work will begin in the Greenpoint neighborhood and the upgrades to the existing AMR devices will provide a number of key benefits including:

• Real-Time Monitoring: Customers can access detailed consumption data online to understand their water use.
• Improved Leak Detection: Faster identification and response to leaks, reducing water loss.
• Enhanced Customer Service: Consistent water use readings translate to better overall service quality.

The upgrade program is mandatory for all property owners and DEP will perform the work at no charge. Most AMR devices are located on the exterior of the property so no appointments will be necessary to complete the upgrade. Residents may see DEP technicians and/or contractors approach their property and walk the perimeter of the building to identify the location of the AMR device. The DEP technicians or contractors will be clearly identified with DEP logos on their uniforms and will produce proper identification, including a DEP ID card, upon request. They will travel in vehicles with DEP markings and will never ask for payment.

Property owners are asked to:

• Ensure the area around the AMR device is clear and accessible and trim back bushes so technicians can easily access the AMR device.
• Bring any pets inside while technicians are working at the property.
• Look out for notifications regarding installation timelines.

Technicians may move garbage cans or open unlocked gates to access the AMR device if needed. Property owners must allow DEP staff or contractors access to the AMR device; failure to provide access may result in a fee. Once the AMR device is found, the technician will remove the old unit, install a new unit in the same location, and test the unit to ensure it is working. Upgrades take 15-30 minutes per property.

Technicians will clean up and take any/all debris with them. If the technician cannot access an AMR device, they may return during an evening or weekend. In some cases, property owners may receive a letter from DEP requesting an appointment to replace the AMR device because DEP must access the interior of the property to complete the upgrade.

DEP manages New York City’s water supply, providing more than 1 billion gallons of high-quality drinking water each day to nearly 10 million residents, including 8.8 million in New York City and 1 million more in counties north of the City. The water is delivered from a watershed that extends more than 125 miles from the City, comprising 19 reservoirs and three controlled lakes. Approximately 7,000 miles of water mains, tunnels and aqueducts bring water to homes and businesses throughout the five boroughs, and 7,500 miles of sewer lines and 96 pump stations take wastewater to 14 in-city treatment plants. DEP also protects the health and safety of New Yorkers by enforcing the Air and Noise Codes and asbestos rules. DEP has a robust capital program, with a planned $29 billion in investments over the next 10 years. For more information, visit nyc.gov/dep, like us on Facebook, or follow us on X, formerly known as Twitter.

Russian National Arrested for Attempting to Illegally Export Aircraft to Russia by Transshipping Through Armenia

 

Sergey Nechaev, a dual U.S.-Russian citizen, was arrested today in the Southern District of Georgia on charges related to the unlawful attempted export of two small aircraft to Russia. In conjunction with the arrest, the U.S. government also seized the aircraft.

According to the indictment, between March 3, 2023, and March 24, 2023, Nechaev engaged in a scheme to violate and evade U.S. export control laws and regulations by attempting to smuggle two Cessna aircraft from the United States to Russia by transshipping them through Armenia. Specifically, after the U.S. government imposed stricter controls on Russia in February 2022, Nechaev attempted to export a 1968 Cessna 172K and a 1973 Cessna, valued together at approximately $170,000, to a purported Russian flight school, without the required license or authorization from the Department of Commerce. To conceal the true end user and destination of the aircraft, Nechaev falsely represented that the end user and destination were in Armenia.

Nechaev is charged with attempting to export controlled goods without a license in violation of the Export Control Reform Act (ECRA), smuggling goods contrary to U.S. law, and causing the submission of false and misleading information in Electronic Export Information paperwork submitted through the Automated Export System. If convicted, Nechaev faces a maximum penalty of 20 years in prison for the unlawful attempted export of controlled goods; up to 10 years in prison for smuggling; and up to five years in prison for falsifying export information. The aircraft will also be subject to forfeiture as property involved in the commission of the crime. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The U.S. Department of Commerce’s Office of Export Enforcement, the U.S. Department of Homeland Security’s Homeland Security Investigations, the U.S. Customs and Border Protection, and the Federal Aviation Administration are investigating the case.

Assistant U.S. Attorneys Darron Hubbard and L. Alexander Hamner for the Southern District of Georgia and Trial Attorneys Leslie Esbrook and Fatema Merchant of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

News, updates and more from NYC Council Member Rafael Salamanca, Jr.

  

THE WEEK IN REVIEW

WORKING TOGETHER WITH COMMUNITY BOARDS

 

During my time as District Manager, I saw firsthand how Community Boards were left to fend for themselves and how their technology was antiquated and inefficient.

When Covid-19 hit, it became apparent Community Boards didn't have the proper resources to hold virtual community meetings and that their technology was outdated, which inspired me to secure this $310,000 to be split between all 5 Community Boards within my District.

WRAPPING UP THE CELEBRATION OF THANKSGIVING 

 

Throughout the last 2 weeks, #TeamSalamanca has shared highlights from our #Thanksgiving Give-Back-Events. I always look forward to our turkey distributions because it allows me the chance to interact one-on-one with you all. I hope we have been able to inspire you to partake in the giving season and contribute back to our borough in your own ways.

From my family to yours, I wish you all a very #HappyThanksgiving! 

 And it’s a wrap… #TeamSalamanca is proud to have distributed 3,500 turkeys throughout The Bronx… Happy Thanksgiving 

COMING EVENTS

BRONX ZOOS HOLIDAY LIGHTS

Please join us as we celebrate the Bronx Zoo’s Holiday Lights with an evening of animal lanterns, ice-carving demonstrations, Wildlife Theater, and more!!!
 Saturday, December 7th,  4PM
*RSVP is required.


*3 tickets maximum allowed per order. Use the link below or QR Code on the Flyer:
https://ticketing.wcs.org/webstore/shop/viewitems.aspx...
 

For ticketing assistance, contact bzeeducation@wcs.org
I hope to see you all there!

HOLIDAY CELEBRATION
 Please join #TeamSalamanca for our 2024 Holiday Party!!!
*No RSVP is required, it will be on a first-come, first-served basis*

 Thursday, December 12th
7 PM-12 AM
Maestro’s Caterers
I hope to see you all there!
Visit our District Office at: 
1070 Southern Boulevard
Bronx, New York 10459
(718) 402-6130
salamanca@council.nyc.gov

CONSUMER ALERT: DOS Division of Consumer Protection Warns Consumers to Be Cautious of Charity Scams

 

Giving Tuesday is December 3rd, Marking the Beginning of the Season of Charitable Giving

Follow These Tips to Donate Wisely and Avoid Charity Scams

Secretary Mosley: “Make sure to follow our tips and use our Division of Consumer Protection’s website and Consumer Assistance Helpline as go-to resources so you can prevent your donation money from falling into the wrong hands.”

In advance of Giving Tuesday, the New York Department of State’s Division of Consumer Protection is warning consumers to be cautious of charity scams. Charity scams can happen at any time, but they are often more prevalent during the holiday season when donors are moved by both generosity and the end-of-year deadline for securing tax deductions. On many occasions, these fraudsters pretend to be affiliated with well-known organizations or even the government to scam people out of their hard-earned money. According to the Federal Trade Commission, there were 9,809 reports of charitable solicitation fraud nationwide in 2023, but many of these scams go unreported because individuals may not know where their donations are going or that they are being scammed.

“The holiday season is here, and many New Yorkers are looking for ways to donate to their favorite causes through charitable organizations,” said Secretary of State Walter T. Mosley. “While the holidays are a time for kindness and giving, scammers may also see this time as an opportunity to exploit the generosity of others. Make sure to follow our tips and use our Division of Consumer Protection’s website and Consumer Assistance Helpline as go-to resources so you can prevent your donation money from falling into the wrong hands.”

Consumers should take the following precautions before donating:

• Check the legitimacy of the charitable organization: Charities located or engaging in substantial fundraising in New York State should be listed on the New York State Attorney General's database of registered charities. Research before you donate to verify registration by checking the database and other websites such as bbb.org, www.give.org and www.guidestar.org, in addition to visiting the charity’s website. If donating toward relief efforts, visit a site such as disasterphilanthropy.org to ensure your donation is going to help those in need.
• Learn to detect a phony charity: Some scammers will create fake “charities” and try to trick you with names similar to well-known charities. Pay attention to the charity’s full name, web address, contact information, donation policies, etc. Scammers may copy or mimic the name of a familiar, trusted organization to swindle you.
• Designate your donation: Ask how your donation will be allocated between direct services and administrative fees. Unless you designate a specific purpose for your donation, it will go into the organization’s general fund, so make sure to note if you are sending money for a specific purpose (i.e.: “Playground Fund”).
• Be cautious of third-party fundraisers: If a solicitation comes from a third-party company, the charitable organization will receive only a percentage of your donation. If you want to ensure the charity receives the whole amount, donate directly to the charity instead. For more information, access the New York State Attorney General’s website and review the annual “Pennies for Charity” report.
• Pay attention to vague claims: Be on alert for claims without any clear plan, such as “all proceeds go to cancer treatments” or “donations go to veterans who can no longer work.” Instead do some research on the charity before you decide.
• Resist high-pressure tactics: Charity fraud scams can come in many forms, whether by email, social media, crowdfunding platforms, cold calls, etc. Watch out for direct e-mails from “victims” and solicitors who employ heart-wrenching stories, insisting that you donate immediately. It is highly recommended to never provide personal information to unsolicited telemarketers, but instead ask the caller to provide you with the full name of the charitable organization, website address and contact information to research and verify.
• Find out who's behind the crowdfunding request: Online crowdfunding websites like GoFundMe, Indiegogo and Crowdrise make it easy for people to create crowdfunding campaigns. To protect yourself, remember to only give to people you know directly. It’s also important to understand the crowdfunding site’s rules, policies and vetting procedures. It can be helpful to know these ahead of time to determine how they are protecting consumers from potential fraud.
• Never disclose personal information: Do not provide any personal information such as your credit card number, Social Security number or any other personal identifying information in response to an unsolicited charitable request.
• Never give cash: Give your contribution by check or credit card to ensure that you have a record of the donation. Make checks out to the charity, not to an individual. If you choose to make a donation via a charity's website, check that the website is secure and that your computer is equipped with the latest anti-virus protection. Check for the padlock to the left of the URL search bar to ensure the site is secure. Do not send funds to anyone asking for bitcoin or cryptocurrency as these payments typically have no protections against fraud.
• Don’t mail checks from public collection boxes: According to the US Financial Crimes Enforcement Network, the number of check fraud crimes nationwide has increased since 2020. To avoid this fraud, go directly to the post office to deposit mail. If you need to use a public U.S. Postal Service collection box, try to do so before the last pickup of the day to minimize the amount of time the check spends in the box.
• Double check before you deduct: Donations made to individuals or organizations that are not tax-exempt are not deductible. To find out if a donation will be tax deductible, research an organization’s tax-exempt status at the Internal Revenue Service Tax Exempt Organization Search. Request a receipt and track the status of your donation.

About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.

Attorney General James Recovers $4.8 Million for Consumers Wrongly Charged by SmileDirectClub

 

SmileDirectClub Continued to Charge Tens of Thousands of Consumers Monthly Payments after Filing for Bankruptcy and Abruptly Shutting Down

More Than 28,000 Consumers Nationwide to be Refunded

New York Attorney General Letitia James today recovered $4.8 million for more than 28,000 consumers, including 2,265 New Yorkers, who were improperly charged by the telehealth company SmileDirectClub after it went bankrupt and stopped providing services. SmileDirectClub, a telehealth company that offered dental services, filed for bankruptcy in September 2023, but continued to charge consumers for services even after it abruptly halted its business operations. The Office of the Attorney General (OAG) received complaints from New Yorkers who were still being charged for services they could no longer receive because SmileDirectClub shut down. As a result of today’s agreement, SmileDirectClub’s payment processor will provide refunds or account credit to consumers who were wrongfully charged. All eligible consumers will be contacted by email with details on the refund process.

“SmileDirectClub shut its doors for good, but illegally continued to charge New Yorkers for costly dental services,” said Attorney General James. “Dental care is expensive and SmileDirectClub promised customers that they would provide affordable, quality care without the price tag, but instead, they extracted thousands of dollars from hardworking people. Today, we are putting money back into people’s pockets who were cheated and reminding companies that if they prey on New Yorkers, my office will step in to protect consumers.”

SmileDirectClub offered dental services, including aligner treatment to help straighten teeth, through its online platform. The majority of SmileDirectClub’s customers paid for their aligner treatment through its “SmilePay” program, which generally involved a $250 up-front payment, followed by 26 monthly installment payments of approximately $89 per month, for a total of more than $2,500.

In September 2023, SmileDirectClub filed for Chapter 11 bankruptcy, and in December 2023, while tens of thousands of consumers were still receiving aligner treatment, the company announced that it was shutting down its platform, canceling outstanding aligner orders, and ceasing all other business operations effective immediately. Despite SmileDirectClub’s permanent closing, the company’s website continued to misleadingly advise consumers, including those who had not completed their aligner treatment, that they must make any remaining monthly installment payments in full. 

The OAG received complaints from consumers who were told to continue paying monthly installments although they could no longer receive any treatment in return. In December 2023, OAG sent a cease-and-desist letter to SmileDirectClub to stop advising consumers to continue making payments since the company was not providing any services. In response to OAG’s letter, SmileDirectClub revised its FAQ page and referred OAG to HPS Investment Partners, the agent of SmileDirectClub’s secured lenders, and Healthcare Finance Direct, SmileDirectClub’s payment processor. HPS and Healthcare Finance Direct cooperated with OAG’s investigation and paused sending former customers of SmileDirectClub to collections.

As a result of today’s agreement, consumers who were improperly charged will receive refunds. A portion of the refunds will be issued automatically. Additional refunds will be issued to consumers who submit an online refund request to Healthcare Finance Direct. Eligible consumers will be contacted by Healthcare Finance Direct by email with information on the automatic refunds and how to submit a request for an additional refund. For more information on refunds and eligibility, please visit Healthcare Finance Direct’s FAQ page.

Attorney General James asks any patient who believes they have been a victim of misleading billing practices to file a complaint online or call 1-800-428-9071.