Choosing a Charity
Picking a Cause Worthy of Your Donation
In this time of economic turmoil, many charities are truly in need of new donors. Even a small contribution can help. So, if you think you can donate, now is certainly the time to act. Before you write a check, though, you want to make sure every dollar you give is going to a worthy cause.
Reasons Not to Give
Some charities seem like outstanding organizations when you read their publicity materials. However, they may not be telling you the whole truth. While few causes actually embezzle or abuse the funds they are given, some are prone to financial mismanagement and other problems. For example, a major issue some charities face is inability to maintain low operating costs. Ideally, a charity group should not spend more than 25% of its earnings on overhead. This can obviously vary, especially when dealing with new organizations, but it is a great indicator of how responsible the group is.
In more serious cases of misleading, you may find you are about to donate to a charity that does not even exist. The IRS keeps an updated list of all registered non-profit charities whose credentials have been assessed. You can access that list here to be sure the group you have selected is legitimate.
Do Your Research
Information about operating costs and other important details can be easily uncovered with some internet research. Some things you might want to know are what direct actions the charity takes, where they operate, and how broad their impact base is. Keep in mind, organizations may not provide direct assistance for their causes. Instead, they may work to change policy, conduct research, or educate the public. Remember, you may see more small-scale, tangible results with a direct action agency, but indirect organizations are also vital to helping a cause.
You can find much of this information by accessing the GuideStar database, which keeps tabs on nearly every reputable charity. You can also use GuideStar to find charities that match your specific interests, including groups operating right in your own community. It will even tell you whether or not your donation is tax deductable.
Stay Involved
After you give your donation, keep in mind other ways you can stay involved. Most organizations offer publications (either via e-mail or regular mail) that can keep donors on top of current events. You should also look into volunteering your time if possible. Some organizations may also accept donations in kind. For example, a shelter may need old clothes or an animal rescue might want dog food. Remember, giving does not have to end with the writing of a check.
Choose Wisely when You Donate
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