How Do I Know My Donation is Getting Where I Want it to Go?

March 24, 2011

With the unfortunate events that have befallen most recently Japan and Haiti a year ago, many people are choosing to dig deep in their pockets to donate cash to help in whatever way they can.  The reasons why we donate can be quite different but one thing is consistent, we want to know that our donation is going to first, the organization that we choose, and second, the people who will benefit.  So what should we be aware of before we send our hard earned cash?  The tips below will help give you the peace of mind that you want when giving to others.

Check to see that the charity can be verified.  A great resource that makes sure that a charitable organization adheres to certain standards is the BBB Wise-Giving Alliance.  From this site you can also review in-depth evaluations of national charities.  You can also get excellent information from the Guidestar site.

How much does the charity actually give out? This is where the rubber meets the road.  It’s great if you give $100 to an organization, but if only $50 gets to the people you may want to find another charity.  So how can you find out how much the charity is keeping out of every dollar that is being raised?  A good site is the Charity Navigator which can provide a great breakdown for not only where the money is going but also provides some good reviews on a variety of charities.  As an FYI the average administrative/fundraising costs for a charity are around $.30 out of every dollar, so charities that are doling out more than $.75 to the ultimate beneficiaries are being truly giving of your donation.

As you can see there is a bit of homework to do before blindly donating your hard earned cash.  There are also a couple of other key things to be aware of when deciding on a charity:

Incessant phone calling.  If it feels like you’re being harassed to make a donation, be wary.  Legitimate charities do not resort to barraging prospective donors over the phone.

Entering a prize drawing.  Again, a legitimate charity is in the business of raising money, not spending it on prizes to lure prospective donors – especially sweepstakes you never entered!

If it doesn’t feel right – DON’T!  If you ever get the feeling that something isn’t right with a purported charitable organization, stop, do your homework, and if things don’t quite check out – save your money, because there is probably another organization that meets your causes and is legitimate.