By Theresa Opeka
Carolina Journal
Charitable giving in North Carolina took a nosedive during the past year according to the North Carolina Secretary of State’s office.
The newly released 2023-2024 NC Secretary of State Charitable Solicitation Licensing (CSL) Division Annual Report states that charities licensed by CSL collected $27,053,714 during the 12-month period, compared to $58,049,394 for Fiscal Year 2022-2023.
Secretary of State Elaine Marshall stated in a press release that the CSL Annual Report is a snapshot of charitable solicitation activity under the NC Solicitation of Contributions statute and not a comprehensive view of all charitable giving across the state.
“North Carolinians are always generous, and that spirit of giving is even more important when folks are feeling economic pressure,” Marshall said, thanking those who were able to donate. “I want to thank North Carolinians who not only continue to give but continue to do their research first to make sure they’re giving to efficient organizations, so their charitable donations are doing the most good possible for the causes they care about.”
“I also thank all of the incredible charitable organizations that are tightening their belts and working harder than ever as needs increase in communities across the state.”
She also encouraged those who haven’t donated and can do so, now is the perfect time.
The 2023-2024 report also shows that charities netted $16,428,036 from reported fundraising campaigns, down significantly from $43,874,708 in 2022-2023.
In this year’s report, the aggregate percentage of charitable donations reported to CSL that went directly to charities’ programs was 60.72%—a 14.86% decline from 2022 to 2023.
In national or multi-state fundraising campaigns that included North Carolina donors, 53.43% of each dollar given was passed directly to the charities after administrative costs, a 28.14% decline from the aggregate percentage of contributions netted by charities in 2022-2023.
Marshall noted that there may be valid reasons for charities and professional solicitors’ lower-than-expected numbers in the report. Educational efforts that may be an essential part of fundraising efforts and core to the mission of some nonprofits are considered expenses in accounting terms.
“Our Annual Report reporting date may come at the beginning of a fundraising cycle when expenses are high, but the donations may not be counted until the following year’s Annual Report,” she said. “So, checking a charity’s stats over the course of two or three years may be the best way to get a clear picture of their effectiveness.”
In addition to donating money to a local or national charity, Marshall said she encourages people to give their time to their local charities as well.
“That’s a great way to help and to see for yourself how effective an organization is,” she said.
The Secretary of State’s Office licenses charities and nonprofit organizations that use professional fundraising services for their solicitation campaigns compensate their officers or raise at least $50,000 a year. These organizations are not exempt from state law for reasons such as being a religious institution, volunteer fire department, or educational institution.
The office also noted that although it regulates fundraising activity under federal case law, it cannot legally penalize a charity for using most of its donations on fundraising or administrative overhead.
People with questions about individual charities or charitable solicitation activities can call the Secretary of State’s Charitable Solicitation Licensing Division at 1-888-830-4989.
Theresa Opeka is the Executive Branch reporter for the Carolina Journal.
