11 Things to Consider Before Giving to Charity

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Before you help, pause and reflect.

When you’re thinking about giving to charity or a nonprofit, it’s important to pause and reflect on a few things. There’s a lot of good that can come from supporting a cause, but giving wisely and with discernment ensures that your donation has the most impact.

Here are 11 things you should consider before giving to charity:

1. Understand the Charity’s Mission

What do you know about the charity or nonprofit that you want to support? Do you truly support their cause? Does the charity or nonprofit’s mission speak to you? Does it reflect your personal values and principles? Make sure these vital questions are answered before devoting time, talent, and, above all, treasure to the charity of your choice.

Make sure your chosen charity’s objectives align with what you truly care about. When you understand their mission and vision and what they’re trying to accomplish, you can feel confident that your money is going to something meaningful.

2. Check the Charity’s Reputation

How can you give wisely and avoid scams at the same time? The answer is just simple: Research the charity and make sure it’s legitimate.

Take time to research the charity, and find out if they are registered to receive money or solicit. How long has the charity been around? What kind of impact has it had? Look for signs that they are trustworthy and allocate donations responsibly.

In the book by Dr. Susan Aurelia Gitelson, Giving is Not Just for the Very Rich: A How-to Guide for Giving and Philanthropy, the author lists the watchdog agencies that evaluate major charities and offer recommendations on their websites. They can help you determine how your donations can be most effective. Among the watchdog agencies are the Charity Navigator, Better Business Bureau, GuideStar, Great Nonprofits, The Independent Sector, Give Well, and the American Institute of Philanthropy.

Make sure to visit the websites or call their offices to determine the legitimacy of the charity or nonprofit you’re planning to donate to. Again, to avoid charity scam, it pays to research to be able to give wisely.

3. Financial Transparency

Does the charity or nonprofit have a good track record with money? One of the first things you must consider before donating is to check how they manage the donations received. So, do they? Check their financial reports or visit independent websites such as Charity Navigator to see if they have a good track record.

A good charity should share clear, detailed information about where your money goes. Charities should release (annual) reports to demonstrate accountability and transparency and show how they’re using the donations they received. These reports are essential for informing donors, beneficiaries, and the public about the charity’s financial performance as well as activities and impact.  

A charity with a solid reputation is more likely to handle your donation responsibly and use it to help those who need it most. So, before you donate, investigate!

4. Know Exactly How Your Donation Will Be Used

To reiterate, before you donate, investigate! Before you help, you must know how the charity will use your donation. Will your donation go directly to helping their intended beneficiaries – or is a large portion going toward administrative costs? Will the charity use your money on certain programs or initiatives you do not heartily support?

Knowing this will give you a clearer picture of how your donation will make a difference in the lives of their beneficiaries. You can start by contacting the charity by phone or email or visiting their branch office or operations sites. You can also check their financial reports and visit the websites of watchdog agencies.

5. Look at the Charity’s Impact

You might also want to look into the past and present projects of the charity or nonprofit you’re considering supporting, to see if these are truly beneficial to the beneficiaries. After all, you would want to know how you are really helping with your donation.

Giving to charity is about creating impact; it’s about making a positive change. So, you should look for signs that the charity or nonprofit’s programs are truly helping people or the community. Whether it’s funding education, providing meals and shelter, supporting mental health initiatives, or conserving the environment, understanding the charity’s impact will help you feel confident in your decision to give.

6. Consider the Charity’s Sustainability

You might also want to look into the long-term sustainability of the charity or nonprofit’s efforts. Will they be able to continue their work beyond donations? How are or how would they be supporting themselves if donations are low?

If donations are low, charities can explore alternative funding strategies such as fundraising events, selling merchandise, in-kind donations, and corporate sponsorships or partnerships. These strategies can help ensure the financial sustainability of the charity’s programs. You will be at ease to know that you’ll be supporting a charity that has a clear vision for the future and a plan for sustaining its impact.

7. Check Their Partnerships

Charities can’t do without their partners or corporate sponsors, which include celebrities, professional athletes, tycoons, influencers, and big brands and businesses for visibility and reputation. Of course, these partners or sponsors are givers or donors themselves, and like you, they want to know how charities are using their donations.

Is your charity working with well-known, respected organizations or individuals? If yes, this indicates that the charity is not only well-funded but also reputable and well-connected. With the help of well-known individuals and organizations, the charity can attract more givers and volunteers, thus ensuring the sustainability of their programs. This is also a way to check if the charity is trustworthy and capable of carrying out its mission.

By the way, if your favorite celebrity, athlete, or influencer is supporting a charity, whose cause is close to your heart, why not support it? 

8. Read Reviews and Testimonials

Another way to check if your charity is legitimate and trustworthy is to look for reviews and testimonials from people who have worked with or benefited from the charity. Feedback from donors or recipients can help you understand how the charity operates and whether they’re really making a difference.

You can check the ratings of charities and read reviews and testimonials on the websites of the watchdog agencies on Charity Navigator, GuideStar, and Better Business Bureau’s Give.org. Make sure you read carefully; just as with reviews on businesses, you should take any review on a charity with a grain of salt and understand that some people have complaints that might seem unreasonable to others.

9. Consider Volunteering First

Probably the best way to know if a charity is a right fit for you is to volunteer. By volunteering, you can get a feel for the charity’s operation. Look at how they work and interact with their beneficiaries and donors.

You will want to know the people running the charity and the volunteers and learn where you all stand and what you all have in common. You will want to make sure they are the kind of people you are okay working with. Also, through volunteering, you will get to meet the beneficiaries and donors or sponsors.

10. Think About the Tax Benefits

There may be tax benefits to consider when giving to charity, but before anything else, make sure the charity is an actual charity. Visit the IRS website to see if the charity is listed as a 501(c)3. The IRS has a searchable database of registered, qualified charities – charities that meet the legal requirements to receive tax-deductible donations.

After verifying that your charity is qualified, consult with a tax professional to understand the potential deductions you could claim. It pays to know the financial side of your donation to make sure you’ll get the most out of it.

11. Understand the Charity’s Approach to Giving

Finally, you might want to know how the charity engages with its donors, sponsors, and partners. A reputable charity will make an effort to keep you informed about the work your donation is supporting. Plus, they make you feel like you are part of their mission, not just a one-time contributor.

A good charity will treat you with fairness, respect, and transparency. This includes acknowledging your donations promptly, using them responsibly, and respecting your privacy and preferences. No reputable charity will pressure you, manipulate you, or mislead you into giving.

Giving to Charity: Are you ready to give thoughtfully?

^{Image Source: Freepik | A group of people gathers around a food donation box, participating in a charitable giving event.}

If you’re looking for a deeper understanding of how to give wisely, Dr. Susan Aurelia Gitelson’s book Giving is Not Just for the Very Rich is the best resource. This easy-to-use guide offers creative and practical ideas to help you give with purpose and impact.

Dr. Gitelson covers everything from assessing charities to understanding the benefits of giving. She shares real-world examples from donors and volunteers who have made a difference. Whether you’re just starting or looking to refine your giving approach, Giving is Not Just for the Very Rich will give you the insights you need.

Make your giving truly meaningful. Get the book on Amazon, Barnes & Noble, and ReadersMagnet Bookstore.