Is this Charity Legitimate? Steps to Take to Ensure You are Donating to a Legitimate Organization

Is this Charity Legitimate? Steps to Take to Ensure You are Donating to a Legitimate Organization

Julianne Shenk, Nonprofit Consultant

JBS Nonprofit Consulting

August 1, 2017

I took a break blogging over the summer, but did receive a few messages regarding people’s apprehension to donate to nonprofits and the legitimacy of such organizations. Per the National Center for Charitable Statistics (NCCS), more than 1.5 million nonprofit organizations are registered in the United States.  This number includes public charities, private foundations, and other types of nonprofit organizations, including chambers of commerce, fraternal organizations and civic leagues.[1]  Keep in mind this study says “registered”, not legitimate. It is up to you to do the research and assure the legitimacy of an organization.

Legitimizing an organization ensures that the monies that you are donating go to the cause, organization, or fund you intend to help. Here are the steps you should take:

-       Research the organization: Use Google (or your preferred internet search engine) and visit the organization’s webpage. Look for their mission statement. Look for testimonials. Some sites will provide you a breakdown of where monies go.

-       Look for articles ABOUT the organization. Old articles are good for background information, but make sure that newer articles are present as well. Be sure you are using a source that you trust.

-       Look for the organization on social media (Instagram, Facebook, Twitter, etc.) Peruse feedback left by others. Look at the interaction between the organization and its followers.

-       Call the organization directly. Ask any question that you may have. This is your hard-earned money and you want to be assured that the funds are going to the people, animals, community, etc. that you intend.

-       Understand where your money will go. Some organizations will allow you to designate your donation to a specific expenditure, while other organizations will apply incoming donations to a specific or pressing demand.

-       Verify that the organization is a certified and IRS recognized 501 (c) (3). This will ensure that your donations are tax deductible (if that is your desire).

-       Use your gut. If something feels off to you, pick another agency. There are multiple agencies designated as nonprofits that serve the same or very similar purpose (i.e., animals, children, homelessness, refugees, veterans, etc.).

-       Ask friends, family, and colleagues who they support. They may have done the vetting for you! But, donate to an organization that you feel comfortable with and whose mission you stand behind.

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[1] http://grantspace.org/tools/knowledge-base/Funding-Research/Statistics/number-of-nonprofits-in-the-u.s