JBS Nonprofit Consulting

How to Pick a Charity to Support and That is Right For You

Julianne B Shenk

JBS Nonprofit Consulting

2 January 2016

Last month[1] I focused on the question I get asked the most from November through December, “How can I make a year end donation”? This month, January the month of new beginnings, I will answer the question, “How do I pick the right charity to support this year”?

Your best tool, research. Use the Internet. Ask friends and family. Ask your coworkers.  Do your due diligence and research the heck out of where you choose to gift your money and/or your time.

It can be a challenge to select which organization to donate to. When I am asked about specific charities-they are nine times out of ten-one of the popular charities people recognize from television commercials, sporting event sponsorships, cold-call agencies or mail solicitations. Which one of these organizations should you gift your money? NONE of them.  Let me explain…

You should choose the charity that supports causes and missions important to you. Organizations that spend much of their resources on constant fundraising put little of what you donate into “the cause”. Your money goes right back in to the next fundraising campaign. It is a constant cycle. And unfortunately, most of the big charities you see plastered with blatant “donate to us” advertising and marketing operate this way. If you are just looking for somewhere to put money to make yourself feel better and to be able to say, “Well I donated to so-and-so”, then by all means, go for it. But if you are looking for an organization that will help someone or promote a cause important to you and your community, then read on.

STEP ONE:

Think about what is important to you. Do you or a family member or friend suffer from a disease that is plagued by underfunded research? Is there an organization in your community trying to better an underserved group of the residents? Are you or a family member a veteran or currently serving service member in need of some additional support? Do you have a soft spot for injured or abandoned animals?

Decide who/what you want to help. Make a personal connection.

STEP TWO:

Do a little research.[2] Use “the Google”, visit the website of a charity that you are interested in. See what they do, who they serve, where their money goes. Follow the links and read testimonials. It is your money that you worked hard to earn, take the time and learn all you can and then you will feel comfortable in your decision.

Please don’t give blindly to an organization because you have “heard of them”. Ask questions. Ask friends, family, and coworkers. And please, do not give to associations calling you over the phone. Fire, police, and EMS calls are the most popular. A large percentage of the time, these callers say they are calling from a local department, when in actuality they are not. If you want to give to a local rescue/service agency like I listed above, please contact them directly and they will guide you to the proper donation authority. They are good salesman, but be strong and go directly to the source. You will know EXACTLY where your money is going.

STEP THREE:

Details. Details. Details. You may think, “well that SOUNDS like the charity”…stop. Make sure you are gifting to the exact charity that you intend to. Unfortunately, some of the more unscrupulous organizations have figured out that if you adopt a name similar to a well-known charity that the donations will just roll in. Check it out. A few minutes on the computer will let you know if the charity that you are considering is legitimate.

STEP FOUR:

Make sure that you understand and agree with the organization’s values and the work that they do. For example, if you want to support agencies that promote adoption in your community, but you personally do not support inter-faith adoptions, find another agency to support. (I use this example because this exact situation came up in a conversation I had with someone.) In this situation, perhaps work directly with your church[3] and get suggestions for which agency to support.  Again, a little research goes a long way. Ask questions. Don’t be afraid of asking too many questions. Legitimate charities answer your questions and assuage your fears/doubts.

STEP FIVE:

Tax deductible? If you are donating and wish for your donation to be tax deductible, make sure you are working with an IRS designated 501 (c) (3). Not all charities that solicit gifts/monies are IRS designated and therefore your donation cannot be deducted from your taxes. Call the agency, research online. Know before you deduct the gift and claim it. If audited, the IRS does not accept the excuse; “I assumed it was tax deductible since it was a charity”.

STEP SIX:

In your research, you should be able to find out where the money goes; specifically what the organization’s expenses go towards. Low administrative expenses demonstrate that a small portion of the funds is going to pay administrators. Couple low admin expenses with low fundraising expenses, and you know that the majority of monies donated to the organization goes to the cause, client, or community for which it is intended. You can ask the organization directly for this information, or again, take to the Internet. If they are unwilling to give you this information, I would advise you find another organization to support. Nonprofits are meant to be transparent.

STEP SEVEN:

Universities and Hospitals. Here are my feelings and what I tell my clients, friends and family about donating to universities and hospitals…don’t.

Now hear me out. Universities and hospitals are the dynamos of the fundraising industry. They have entire departments and committees designated solely to fundraising. I encourage you to donate directly to a cause within the “purview” of the university or hospital. Does the arts department need funding at your alma mater? Does the honors program from your business school need help raising money for a trip to a prominent program or tech talk? Does the children’s wing at your local hospital need new televisions for the play area? Give to a cause that you can identify with. A generic donation to a university or hospital goes in to the “kitty”. You never know what your donation was truly used for. Sure, you may get a thank you note from the CEO or manager of the hospital or the President or Dean of the school, but where did your money go? Who did you help? A thank you note from the head of the Pediatric Unit thanking you for helping to provide televisions for the playroom for the children’s cancer ward is so much more fulfilling. And personal.

STEP EIGHT:

Think locally. Is your local food pantry in need of donations, specifically during holiday season or extreme weather seasons? Is the homeless shelter asking for donations to help provide shelter/lodging to serve more of the community? Is the animal shelter asking for donations to purchase food/supplies to better serve more abandoned animals?

Thinking locally impacts you directly and produces results that you can see first hand. Better yet…

STEP NINE:

Volunteer. What better way to see and learn first hand what your community needs and specifically where your donation will go?  And better than that…do both! Volunteering truly is one of the most rewarding things you will ever do.

CAVEAT:

This is so simple, but it needs mentioning. Protect your personal information, especially when considering phone, at home, snail mail, and/or email requests. Legitimate organizations will have secure online donation capabilities accompanied by information and specific payment policies. Ask questions. And please do not feel like you are offending or letting anyone down by turning away unsolicited donation requests. This is your money; you should choose how and where to donate it…after your research of course!

[1] http://jbsnonprofitconsulting.blogspot.com/2015/12/end-of-year-charitable-donations.html JBS Nonprofit Consulting Blog.

[2] A good source: Forbes list of the 2015’s largest charities. http://www.forbes.com/sites/williampbarrett/2015/12/09/the-largest-u-s-charities-for-2015/

[3] For example, for Christian specific charities, you can search on Ministry Watch or Evangelical Council for Financial Accountability.