Why Donate to Charity and the Benefits of Donation

Many individuals and businesses with some extra cash decide to donate to charity for several reasons. Some of the reasons are philanthropic—the donor genuinely cares about the cause he or she is donating to and wants to help the charity in its work. A donor may also donate to charity as a means of advertising or of improving his or her standing in the community. Local charities, especially, often provide lists of their donors or refer business to them. Finally some people donate to charity because the donations are tax deductible.


What Makes a Good Charity and Things to look for When Donating

It is important for donors to be careful when selecting a charity to support. Some charities are outright scams. Others siphon most of the money they receive towards administrative costs rather than reaching out to the community. Still others are legitimate but ineffective and poorly run. Donors need to do their homework before handing over their hard-earned cash to the wrong people.

Ideally, a charity should be a not for profit with 501(c)(3) status. If it’s not, donors cannot claim their donations on their taxes. (This shouldn’t scare donors away from international charities—most have some affiliation in the U.S. and are registered with the IRS.)

The charity should have a clear mission statement and should use the majority of the money it receives from donations to support its programs rather than to pay off executive salaries or do more fundraising. Donors should be able to request and receive written material about how the charity uses its funds.

When researching a charity, donors need to be very sure they are researching the correct charity. Scam artists frequently use names similar to those of a well-known charity to trick donors. For instance, one scam artist named his charity “Kids Wish USA.” Many of his victims confused the name with that of the legitimate charity “Make A Wish Foundation.”

People donating to national charities can research a charity on Give.org or CharityNavigator.org. Charity Navigator also provides information about international charities.

Give.org offers charities that meet their standards a logo with the phrase “BBB Wise Giving Alliance Standards” on it. CharityNavigator.org offers a “Four Star Charity” logo to their highest-rated charities.

Small or local charities are harder to research as they often do not show up on national databases (although CharityNavigator.org does list some local charities). People who wish to donate to charity locally should consider asking for references—who has the charity benefited?


What about Professional Fundraisers: A Look at Who’s Asking You for Money

Many charities do their own fundraising. Others hire professional fundraisers who are then entitled to keep a percentage of the money they raise. Sometimes a scam artist will pretend to be a fund raiser and keep all of the money.

People who are called on the telephone by someone soliciting funds for a charity should hold onto their wallets. The best approach is for the donor to explain that he or she does not respond to telephone solicitations, but would be glad to consider donating if the caller would send them something in writing. If the caller refuses, the donor should hang up. No legitimate charity would hesitate to provide written information to a potential donor.

Another strategy is for donors to request the full name, address, and phone number of the charity and then contact the charity directly for more information.


Who’s Legitimate?

Note: all of these programs received a four-star rating—the highest rating possible—from CharityNavigators.org.

Alzheimer’s Association
http://www.alz.org/
National organization dedicated to eliminating and preventing Alzheimer’s through research and supporting those currently affected. (Note: Charity Navigator awarded the national program two stars, but the local chapters received four stars. For the best possible use of your money, donate to your local chapter.)

American Red Cross
http://www.redcross.org/
Large, well, organized, and over a hundred years old, this organization provides multiple services but is perhaps best known for their emergency services and keeping men and women in the armed services in touch with their families. Donate to the national organization directly or to your local chapter.

The Conservation Fund
http://www.conservationfund.org/
National organization focused on protecting America’s land and water resources.

Doctors without Borders
http://www.doctorswithoutborders.org/
International program which delivers medical aid to victims of illness, war, or disaster.

Elephant Sanctuary
http://www.elephants.com/
Provides a home for elephants that are “old, sick, or needy.” Also provides education about elephants.

The Mountain Institute
http://www.mountain.org/
International organization dedicated to advancing mountain cultures and preserving mountain environments.

Operation USA
http://www.opusa.org/
Small but dedicated international program which provides disaster relief and community development.

Save the Children
http://www.savethechildren.org/
International charity working to create positive change for children worldwide.

WildAid
http://www.wildaid.org/eng.asp?CID=1
International program dedicated to eliminating illegal wildlife trade.

Zero to Three
http://www.zerotothree.org/
National program offering information to parents and professionals about the first three years of a child’s life.