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.
