Charitable giving is a great American value, but how do we choose charities to support, and how do we know our money will do the most good?
Charities that ask for your money should be transparent about how donations are used. Ask the charity what programs and services your money will support and how much of each dollar is spent on fundraising and other overhead.
Many charities include copies of their annual reports on their websites, and some include an IRS Form 990, which is the charity's tax return. By looking at those reports, you can get a good idea of where the money goes.
Check out the charity before you donate. You can look it up at charity rating sites such as Better Business Bureau's Wise Giving Alliance, Charity Navigator or GuideStar, to name a few.
Donate to recognized charities with a history. Some charities spring up overnight when a natural disaster strikes or a major news story dominates the headlines, and may disappear just as quickly with your donation.
Thinking about donating to a charity? Here are a few tips to ensure that your donation dollars benefit the people and organizations you want to help:
If you are unfamiliar with an organization, don't hesitate to ask the charity for written information about its programs and finances.
Don't succumb to pressure to give money on the spot. A charity that can use your money today will welcome it just as much tomorrow. Watch out for appeals that bring tears to your eyes but tell you nothing about how your donation will be used.
Before making online donations, determine whether the charity's website is secure and that it has a privacy policy concerning the use of your name, email address or other personal facts. (Secure sites' addresses begin with https://.)
When considering support for a cause-related marketing campaign, find the answers to these questions: What portion of the purchase price will benefit the charity? What is the duration of the campaign? What is the maximum or minimum total contribution? If the information is not on the item, check the organization's website.
Before donating used items, make sure they are in good shape to reuse. Donating junk puts an undue burden on the charity and does more harm than good. You may want to consider selling the item and donating the proceeds to a charity.
Mike Harrison is regional director for the Mid Missouri Better Business Bureau, whose mission is to create a marketplace where buyers and sellers can trust each other.