How to Spot an Effective and Responsible Charity to Donate

June 18, 2019 by Angie Long

The amount of money people give to charities grows every year. In fact, Americans donated over $410 billion to charities in 2017. Although this is an endearing thought, there is a dark cloud over the act of giving, considering that there are thieves who make a living scamming generous people out of money by pretending to be a legitimate charity. 

Even some that are actually legitimate may even be less ethical than you realize, keeping more of your donation for themselves than for the cause they advertise to be passionate about. That's why it is so important to do research before donating to any cause.

Here are 10 tips for finding a charity that you can feel good about donating to.

10 Tips for Finding the Best Charities

1. Instead of feeling pressured to donate to a particular cause, stop and think about the things that really tug at your heartstrings, such as helping animals, preventing hunger or helping with disaster relief. Then, do a search on the internet for whatever type of cause it is (let's say it's animals), but add words like, "best charity for ..." before the cause. Once you've found one that interests you, do another search, but add words like, "rating," or "review" to the end of the search phrase. Watch for any red flags that may come up in your search. 

2. Once you found a legitimate website for your charity, scope it for a thorough description of how it uses its donations. You may also want to find out how much of each dollar donated goes toward the cause instead of going to overhead costs. For example, the organization charity:water makes sure 100% of donations go directly to obtaining clean water, since private donors cover their operating costs. 

3. Visit the website for the National Association of State Charity Officials at www.nasconet.org. Here, you can find out if the charity regulator in your state says the charity is to be trusted.

4. Be cautious of phone calls from fundraisers. They can be pushy and possibly aren’t even legitimate. Don’t ever let them rush you into a donation. If they seem interesting and too good to be true, ask for their details so you can research them later and see if they’re the real deal. 

5. Never trust caller ID. Scammers can easily pretend to be calling from a number that looks like a local number. 

6. Before donating to a charity online, double-check the web address. Some fake charities have scammed people out of money by changing one slight detail in a charity name or website to make it look like it is the real charity when it isn’t.

7. Be skeptical of donation requests through crowdfunding sites or of those you see on social media. People can be great storytellers and even better scammers. Keep in mind that any money you give to an individual isn’t likely to be tax-deductible either. 

8. Keep in mind that a legitimate charity will never ask you to wire money to them or insist on cash donations. They should be able to provide you with a receipt, and the best way to prove you paid them is by credit card or check. Remember to only pay a charity after you are positive it is legitimate. 

9. After you donate, be sure to review your credit card or bank statement to make sure your money went where it was supposed to go. Also, make sure you were only charged what you intended to donate. 

10. If you’re still skeptical about a charity, ask if you can make a donation that isn’t monetary, such as clothing, food or even volunteering your time. Some charities, such as Feeding America, host food drives, so you can donate food items instead of money. 

You can never be too cautious when donating your money. There will always be thieves looking to make a quick buck, preying upon the kindness of others. Remember that there are helpful websites you can use to check the validity of a charity, including Charity Navigator, GuideStar, the IRS Nonprofit Charities Database, and Charity Watch.

You can also check out the charities we've partnered with at our collection of Featured Causes or view 50 brands that give back to make sure you're purchases go towards a good cause!