According to a report released by the New York State attorney general's office, New York nonprofit organizations received just over a third of the funds raised by telemarketing campaigns in the state in 2003.

In his annual Pennies for Charity report, Attorney General Eliot Spitzer found that of the $187.4 million raised in 592 campaigns in 2003, $63 million, or 33.7 percent, went to charities; the rest went to cover the cost of the campaigns and expenses associated with the telemarketers themselves. Moreover, only forty-two of the campaigns returned at least 65 percent of the funds raised, the standard set by the Better Business Bureau.

"This annual report is a reminder of the need to make informed decisions before contributing hard-earned dollars to charity," said Spitzer in releasing the report. "In addition, people who serve on charitable boards must be actively engaged in their organizations' fundraising decisions. They have an obligation to ensure that their organization's income for charitable purposes is maximized."

Spitzer has proposed legislation to improve oversight of professional fundraising firms, strengthen the anti-fraud statutes prohibiting charities from misleading the public, and require professional fundraisers to disclose accurate information about the proportion of funds charities have received in past campaigns.