So, you want to donate money to a cause you care about. Maybe a news story got you riled up, or a relative has a health condition you want to help spread awareness about. If you’re in a position to make a financial donation, that’s great. But if you really want to be sure your charitable giving is going to the best possible use, it’s best to do some due diligence before clicking the Donate Now button.
The sad truth is that not all charities are created equal. “With social media part of our daily lives, it is inevitable that we will be exposed to a charitable scam,” Catherine Azeles, an investment consultant with Conrad Siegel, tells SELF. “Many scammers use social media to pretend that they are acting on behalf of a well-known charity. Others will use heartbreaking tragedies to create phony websites and solicit contributions that will never make it to the victims.”
Even a legitimate, non-scam charity can have significant problems. A poorly run charity may not manage donations well, lessening the chance that your gift is used for the intended purpose.
We spoke to financial experts to find out what you should do to make your donations count.
Pick a charity that feels right.
“You [want to] know your donation is going in the right direction, aligned with your beliefs,” Elisabeth Dawson, founder of COPIA Wealth Management, tells SELF. “Do your homework and read their mission statement and goals.”
Be sure to consider both large, national or international organizations as well as local charities; one might be a better fit for your charitable goals, Patrick Huey, a certified financial planner, tells SELF. He says that he always guides his clients to consider both options. “They may find that the problems they want to tackle are large and require national charities to address them. Or they may find that a local impact is more important and smaller charities are their preferred method of creating change,” he says, adding, “Neither approach is better than the other, they depend entirely on what the client is trying to achieve.”
You can be choosy about how your donations are actually put to use.
When you find a cause you want to support, look at the various organizations working for the same cause and go with the one that approaches it in a way that resonates with you.
Picture how you want your money spent and let that guide you. For example, if you want to donate to an animal rescue charity, think about the specifics of where your money could go: Transporting adoptable animals from areas of low demand to high demand? Covering veterinary bills? Staffing shelters? Funding neuter and spay programs? Providing animal feed and toys?
Or let’s say you are interested in donating money to an organization helping children separated from their families at the border. Some organizations specialize in legal representation for undocumented migrants, while others provide supplies for detained kids or translation services during immigration proceedings.
Do some research to make sure a charity is reputable and uses its donations responsibly.
“Donors have an obligation to ask questions,” Gena Rotstein, a co-founder of Karma & Cents Inc. who advises financial professionals and their clients on strategic giving, tells SELF. “Similar to what you would do when considering an investment in a fund or business, get a picture. Who else is operating in the space? What are the qualifications of the leadership? How is the solution that is being presented going to actually address the issue (as opposed to just continue to fund a problem)?”
