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  • 6 Tips to Donate to Charity the Smart Way

    6 Tips to Donate to Charity the Smart Way

    For many of us, donating to the less fortunate is just as much a part of the season’s celebration as tinsel and carols. However, don’t let your warm and fuzzy feelings lead you to make bad decisions in the name of charity.

    Following are six tips to making smart charitable donations.

    1. Pick your passion

    Before you can donate to a charity, you need to find one. Consider the issues that fire you up: What would you change about the world? Which injustice would you right if given the chance?

    From curing childhood cancer to saving the oceans, there are charities for virtually every cause. Once you settle on your general area of focus, decide whether you want to donate locally, nationally or internationally. It’s your call. There is no right answer.

    2. Make sure your charity is legit

    Find a charity worthy of your money. Charity scams can be big business for rip-off artists who prey on the good intentions of others. Some so-called charities aren’t even registered tax-exempt organizations. Instead, they are simply a front to siphon money into the owner’s pocket.

    3. Watch out for excessive administrative expenses

    Before you donate, make sure your money will be well-spent. According to the BBB Wise Giving Alliance standards, a charitable organization should spend at least 65 percent of its money on program activities — that is, activities directly related to its cause. While 65 percent might be the bare minimum, you can find many charities that go above and beyond.

    4. Make your money work harder

    Once you’ve made a couple of donations, your mailbox is likely to begin filling with solicitations. It might be tempting to spread the wealth and give a little here and a little there. However, your money will go further if you concentrate your donations on one charity, advises Charity Navigator on its website.

    Remember, each organization has handling and processing costs associated with receiving your donation. There may not be much left of your small donation after those costs are worked into the equation.

    5. Donate directly

    Never make a donation to a telephone solicitor. The solicitor might not even be legitimate.

    Telephone charity scams use names similar to those of well-known organizations. Or, they may say they are raising money for causes that tug at the heartstrings, such as supporting military families, veterans or police officers.

    In reality, your money will be used simply to profit the person calling.

    6. Give more than money

    Finally, don’t forget that your favorite charity can likely use more than just money. Soup kitchens need hands to serve food. Environmental groups need feet to survey land. If you have a particular skill, such as Web design or marketing, you might be able to donate those services.


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