More than 6,400 Colorado-based charities last year raised $4.2 billion, according to a newly released report by the secretary of state.
Those charities on average said they spent nearly 10 percent of contributions on fundraising expenses, the state’s charitable solicitations annual report shows
.
Charities that paid professional solicitors such as those who raise funds over the telephone retained about 81 percent of the money raised on their behalf. That includes Colorado-based charities and others raising money here from outside the state.
In all, paid solicitors raised $472 million in Colorado last year, including national campaigns. Two of those — the U.S. Charitable Gift Trust and the Network for Good — accounted for $341 million of the total.
Those two charities received 99 percent and 97 percent of the money raised on their behalf, the report shows, “which skewed the percent (of money) to charity ratio upward.”
When removed, charities that used solicitors received only about 38 percent of the funds raised on their behalf, the report notes.
Some charities realized nothing from the money that was raised on their behalf, according to the report, a reason why consumers should consult the information before deciding where their donations should go.
All charities across the country that took in funds from Colorado residents reported raising more than $79.6 billion nationwide, the report shows. Of that total, about 8 percent was for fund-raising expenses. There are more than 12,600 charities registered in Colorado.
The report summarizes information reported by charitable organizations, paid solicitors and professional fundraising consultants registered to solicit contributions in Colorado.
“This report helps Coloradans make informed choices about which charities to support,” Secretary of State Wayne Williams said in a press release. “The report also helps charities succeed by providing them with information on fundraising trends that charities can use to improve their own development efforts.”
The state’s reporting system was devised and implemented after Denver Post stories in 2001 focused on charitable solicitations as well as the lack of enforcement of the state’s few laws governing them.
