ATLANTA … Secretary of State Cathy Cox today identified 18 charitable organizations that collected funds in Georgia over the last year as Uncharitable Charities for the low percentage of funds collected in solicitation campaigns that went to the organization’s charitable purpose. Secretary Cox said the list of Uncharitable Charities was comprised of organizations subject to the Georgia Charities Act that employed paid solicitors to conduct campaigns in Georgia, that raised more than $10,000, and in which 10 percent or less of the moneys raised were actually retained by the charity.

The solicitation reports reveal that four charities on the list actually received zero percent of the funds collected during the campaign, with every dollar remaining in the hands of the paid solicitation firm. Included on the list of 18 Uncharitable Charities is the American Deputy Sheriff’s Association, (ADSA), which collected the largest amount during the period at over $1.2 million. Of the funds raised, more than $1.1 million, or 92 percent, was retained by the solicitation firm, National Fundraisers, Inc. and just 8 percent was directed to the Deputy Sheriff’s Association.

The Secretary of State’s office has posted on its website a full roster of summaries of all charitable solicitation campaigns reported to the agency between October 1, 1998 and October 31, 1999. The list, which includes 165 charitable organizations, their paid solicitors, total funds raised, total funds and percentage retained by the charity, is available online at http://www.sos.state.ga.us/securities/paid_solicitor_home.htm.

"Our list of Uncharitable Charities makes clear that Georgians should ask hard questions before responding to any charitable solicitation to make sure the dollars they contribute actually go to the programs and projects they wish to support," Secretary Cox said. "The database of charitable solicitation campaigns on our website is a first, important step towards providing generous Georgians with more detailed and actionable information about the charities we regulate. Consumers, not government officials, must ultimately decide who is worthy of charitable support, but I believe donors should think long and hard before sending money to any organization that spends all, or nearly all, of the dollars raised on fundraising expense, rather than on its declared charitable mission," Secretary Cox added.

Visitors to the agency’s website may view the list of Uncharitable Charities and the financial data submitted in conjunction with these campaigns. For purposes of this list, reports from charities that conducted multiple campaigns during the year were aggregated to obtain an overall total. Consumers may also separately view the complete, unaggregated database of fundraising campaigns and may sort the list alphabetically by charity, by paid solicitor firm, or by the percent of funds retained by the charity. In the full database, unaggregated, campaign-by-campaign totals are provided so site visitors can access more detailed information about each individual solicitation program. For solicitation campaigns whose fundraising expenses exceeded the amount of contributions collected, the "Percentage Returned to Charity" data field appears as zero percent.

Secretary Cox said that Georgia law does not address how a charity’s funds may be spent, and numerous court decisions have held that state governments may not regulate the allocation of charitable expenditures. "How dollars are spent is the business of charities, not government officials, but I believe educating donors on where the money goes will significantly increase accountability and encourage sound fiscal practices," said Secretary Cox. In the coming year Ms. Cox said she plans to expand the web-based charitable information to include full financial reports (which will include overall revenues and expenditures) for each of the approximately 1,800 charities registered to do business in Georgia.

Secretary Cox also noted that the database includes only the unaudited reports of solicitation campaigns submitted by paid solicitors to her office. These campaigns constitute just one aspect of the fundraising activities of each charitable organization. The percentage of funds each charity spends for fundraising, rather than programs, in its overall budget may vary significantly from the percentages reflected in these reports. If a charity does not employ a paid solicitor, campaign reports are not required and their information will not appear in the database.

A number of charitable enterprises are exempt from state regulation. Churches, other houses of worship, nonprofit educational institutions and their affiliated organizations as well as professional, fraternal and social organizations are not required to register or file reports with the Secretary of State.