There are so many wonderful charities out there…. Sifting through them in order to figure out where your money will be most wisely spent can be daunting. Having worked extensively in the nonprofit world, I thought it may be helpful to give some pointers on responsible giving.

The first thing donors need to ask is, “What are the causes close to my heart?”. If you don’t have a passion about a cause, it is very difficult to feel good about giving. Once you’ve identified what’s important to you, get on the internet or open up a CFC (Combined Federal Campaign) information packet and research what organizations support that cause.

Once you’ve identified your passion, check into where your money will be spent and how. A non-profit should very clearly identify where it’s money is being spent (i.e.- researching heart disease, buying supplies for and packaging goods for third world nations, educating the community on specific issues, etc.) If you can’t find that information readily, you might want to look to another charity. It is also imperative to figure out how much of your money is used for administrative costs. The lower the administrative costs, the more of your money will be used for good. A general rule of thumb is that no more than 25% of contributions should be used administratively. The 10% range is excellent and anything less is wonderful. If you cannot find administrative costs for an organization, buyer beware. For tax purposes, be sure that the organization is a 501(c)3 organization, registered with the government if you are planning to use your charitable contribution for taxes and make sure you have a receipt. It is the donor’s responsibility to maintain records for tax purposes.

Finally, the most important thing you can do as a donor is contact the organization. Organizations should be more than willing to introduce themselves and what they do. If you leave a message and don’t hear back from a particular group, do you really want to give them your hard earned money? The same goes if they are less than willing to discuss their mission and practices with you.

An excellent charitable group will use as much of your money on helping to serve the community. It should also be very clear about communicating its message and value even the smallest donors. Before you commit to an organization, be sure to check it out thoroughly.

Enjoy knowing that you are helping the community, but remember to do your research.

Over and out…