There are millions of charities that want your. How can you determine which ones are worth your money? How do you know which ones are legitimate?
If you haven’t already, you’ll get a lot of phone calls from many worthy (and not-so-worthy) causes that need your money. Even more applications will come in the mail. And every now and then a person will show up on your doorstep looking for a donation.
First, remember that you can’t do everything. Don’t succumb to a sales pitch. Many charities hire professional fundraisers who are very skilled at getting your money. So before donating to any charity, first determine your values. How much of your budget feels good to donate to charities?
Take a look at your preferences below. You know how much you can give; Now take a look at what types of organizations you want to support. From GuideStar.com (more on them later), I came up with several questions to ask yourself:
- “What is important to me?” Do you want to focus on the environment, education, hunger, animals, orphans?
- “Where should the charity do its work?” Do you want to focus on local initiatives or more global causes?
- “What kind of charity do I want to support?” Want a bigger one that’s highly organized with decades of examples of your work? Or do you prefer a newer, smaller charity that is a bit more nimble and cutting edge, but not yet fully in focus?
By answering these questions, you can begin your research and choose the charities you want to support. Be aware of the process: You choose the charities … don’t wait for the charities to call, write or stop by and pick you up. When they do, and if they match your criteria, you can research to see if you’d like to add them to your donation list.
How do you do that research? There are many websites that contain data on charities. At Guidestar.org, after registering (free), you can search for a charity and get your Form 990. That’s your annual IRS filing. Here you can see your income and expenses, including the amount of money that goes to programs, staff, and fundraising activities.
Another great source is the Better Business Bureau. BBB runs the Give.org website, the home of the BBB Wise Giving Alliance. By selecting “Charity Reports”, you can search thousands of charities. BBB does not evaluate the merit of a particular charity, instead looking to see if it meets 20 accountability standards.
None of the sites list all the legitimate charities, but it’s a start.
In any case, when deciding who you want to support:
- Put it in your budget (even if it’s a piggy bank on the coffee table),
- Make your check payable to the charity, not the collector
- Don’t give cash (okay, you can leave some money in the red buckets)
- Review your preferences, charities, and budget each year to make sure they still match your values.
Most charitable giving begins with an emotional tug on the heart. There is nothing wrong in it. It means that you are human. Just moderate with research, logic, patience, and purpose.