Steps to Take Before Donating to Charity
Donations from private citizens are the lifeblood of many nonprofit organizations. Without donations from millions of well-intentioned individuals, many charities would not be able to fulfill their missions.
When donating to charitable organizations, donors typically want to know their donations will make a difference. With a little pre-donation research and a few smart giving strategies, prospective donors can make sure their donations ultimately end up doing the most good.
• Refine your online searches. The Federal Trade Commission recommends searching online for a cause you care about but adding certain terms to the search before choosing a charity. For example, if you’re passionate about helping the homeless, instead of entering “charities for the homeless” into the search engine, search for “highly rated charities for the homeless.” Such a search may uncover red flags about certain organizations and direct you to the most reputable charity possible.
• Vet a charity before donating. Transparency is important when choosing a charity. A charity should willingly share information such as how donation dollars are spent and the programs that have been established to help it meet its mission. Such information should be readily available on the organization’s website. The FTC recommends donors learn how much of their donations will be used to provide direct support to the programs. The FTC also recommends being suspicious of charities that do not provide detailed information about their missions and programs.
• Don’t go it alone. Vetting charities is important, but donors shouldn’t feel like they have to do all that legwork on their own. Various organizations, including Better Business Bureau Wise Giving Alliance, Charity Navigator and CharityWatch exist to protect donors and ensure they give wisely. Local government regulators also may be able to provide information about charities to help donors avoid fraud.
Charitable donations help millions of people every day. Donors can protect themselves and ensure their money is used wisely by doing their homework before giving to nonprofit organizations.
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