Last week, we discussed 3 Tips You Must Read Before Donating to Charity as part of our Houston Bookkeeping tip series. We shared the issue with phony charities, the basics of giving, as well as how charitable giving affects your taxes. This week, we will continue in that thread to show you how to make the most of your charitable dollars to see they do the most good.
1. Help vs. Intentions
Now that you know which charities are legitimate and spending money as they should, there are also other factors to consider.
For example, if you’d like to donate to a charity that fights a certain disease, be sure that donations are actually going to fight the disease. Many charities can legitimately claim “raising awareness” or other expense as a charitable cost of theirs, but if you prefer your donations go to research for a cure or for medicine for the poor, it is vital to find out.
You can visit the charity’s website to see if and how many materials for raising awareness and related expenses they have. Search to see if they have an option for those with the disease to get help or if they are consistently posting victim updates. If research is your preferred area of donation, look up the latest developments in research by doing a news search on the disease to see if they come up. You can also use one of the resources from Charity Navigator or one of the others listed above to get a report on where their charitable expenses lie.
2. Reverse Research
You can also do web searches to look up which charity is making news and strides towards your charitable goals. For example, the latest studies and breakthroughs in medical research are often reported on by major news outlets, as well as the universities, hospitals, or other non-profit organizations conducting it.
See a natural disaster on television? Which charitable organization was there first and making a difference?
Is there an outbreak of a disease overseas? Look for reports on which charities and non-profits are on the front lines combatting it.
3. See For Yourself
If you’re truly determined to know a charity’s effectiveness, call them. But do not call the donor line. They are usually well-staffed and ready to collect donations. Find out which number victims can call – those on the donor line should know – and call it. Ask the help line what the charity does for victims directly to learn the honest answer, which can include anything from bill pay to a visit to their food pantry.
This is also an excellent chance to see how and if the charity screens the people they are supposed to help, as well as ask yourself if you want to donate to a charity that gives out cash, food, etc. with no questions asked or if you’d rather the charity employ a selection process to ensure the people they help are truly deserving.
If the charity gives you, “the victim,” the run around, offers only promotional materials, or refers you elsewhere, you may want to direct your donations elsewhere.
Charities that give to their victims with no questions asked can in reality be helping scammers who pose as victims, rather than those who truly need it. In fact, if you – the person posing as a victim – is actually offered charity, it may be time to consider another non-profit.
Houston Bookkeeping Services
If your business or family needs help keeping the books straight, including for charitable giving, contact us.