6 Things To Remember When You Check Out Charities

We all know that it is important to help improve our global community by giving to those in need. Many times, we will give a young lady in a white shirt an umbrella to walk across the street in the pouring rain. Other times, we give our extra Egg Mcmuffin to the homeless man standing outside the McDonalds. We don’t mind being charitable in this fashion. It is easy.

What about the rest of the time?

In the first examples, we weren’t worried about the one in need of help taking advantage of us. We had complete control, and we didn’t lose anything of major value. Money is different. We’ve all heard the stories of fraud and horrible money management when it comes to charity organizations.

Who Should we trust?

Purpose Of Charity Concerns

You are not alone in these concerns. I freak out about dropping a penny in the can at gas stations. I don’t know where it is going. But we need to rise above our fears. There are many wonderful charity, non-commerical, and church organizations that are trying to make an impact to change our world. They need every dollar we can give them.

This is why I created this list of 6 considerations when asked to donate your money to charity. You still can help change the world and there are charities put in place to service. This list isn’t a difficult routine, as it is only an article on awareness.

1. Overhead

How much money goes to paying for staff, buildings, and other things?

Unless you deal directly with an individual in need of help, you will have to work with an organization with administrative needs. Every organization has to purchase staplers, but they do not need to purchase brand new Macbooks for every employer. Charity Navigator suggests that a good charity spends 75% of its funds on its programs and services.

2. Dispension of Funds

Beyond the costs of administration, you should be aware of the breakdown of its entire budget. There are fundraisers and sometimes donation gifts. Have you considered how much of your donation is going to purchase the gift you are receiving?

Also, many charities supply need to several different causes. You should know about every cause the charity supports financially. Some organizations will be able to tell you exactly where every penny your dollar is going.

3. Reliability and trust

Can they prove and show you that every dollar that you give goes directly to where they say?

They should.

There are many frauds going on everyday that operate at the expense of legitimate charitable organizations. Sadly, these few trouble cases have stopped many individuals whom would have given if it wasn’t for fear.

This shouldn’t stop us.

There are many resources around that can help us understand who are legit. The IRS provides a complete list of acceptable charities. This is a large list and can be narrowed down and more easily comprehended by visitng Charity Navigators charity listings. You should also ask your church about its budget. They might be well-intentioned, but many have not been good stewards.

Note: Be sure to take note of the spelling of the charity. Many frauds operate by names that are slightly different than its real counterparts.

i.e. Salvatian Army – Fake; Salvation Army – Real

4. Purpose

Do you know who the organization is trying to help?

I have stopped and dropped change into a Santa’s Salvation Army collection plate, but I didn’t know what the money was going for. Make sure you check on the goal of the organization by asking for a brochure or looking online. It would be horrible to find out that you are giving to a cause that you don’t support.

More importantly, you get involved into the story and cause of the charity when you read their background story.

5. Tax Returns

Do you want to take full advantage of your donations?

The government gives full tax returns on giving to many charities and churches, but not all charitable causes. Giving a couple of dollars to a homeless family will not give you any worries about administrative costs, but it does not qualify for a tax return.

 In addition, you always have to keep receipts of any qualified donations.

Access the IRS’ complete list of qualified charities for tax deduction

6. The Impact

How effective is the charity or organization in making a positive change in its goals?

It is a waste of your money and a burden on really effective charities when we give to uneffective charities. If we aren’t responsible donors and check on the impact that a charity is making, then there is no point in giving away your money.. unless you are doing it for the perks.

Just because it is a worthy cause, doesn’t mean it is a worthy charity.

There are many excellent resources out there to help you plow through the troubles of donating to charity. On writing this article, I found this excellent website Charity Navigators. You should check it out

*Photo is By Gregory J. Smith. He is an excellent photographer working with the Children At Risk Foundation

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6 Things To Remember When You Check Out Charities(3 Responses)

1. Everything Finance says:

   November 16, 2007 at 5:03 am

   Carnival of Everything Finance: # 7 Edition…

   Welcome to the November 16, 2007 edition of Carnival of Everything Finance. We had over 80 really good articles submitted for this edi ……

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2. senangaje says:

   July 1, 2008 at 8:51 pm

   Lets.. donating books to charities

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3. Christmas Charity: Giving This Holiday Season says:

   December 4, 2008 at 9:27 am

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