Tips for Giving Money to Charity

It feels good to give, especially when you’re giving money to a charity that you believe in. Every year, people all around the world donate to their favorite charities, but it can be hard to make sure that your donation is making the impact that you hope for. When some charities are connected so closely to scandals, and when people need more help than ever, how do you make sure that your money is going to be doing the most good? Here are some tips that will ensure that your donation is going to be helping the most people and not lining the pockets of those that don’t need it.

Copy Your Donations

One of the first steps you can take is to take a look at the charities that other people and organizations are donating to. The rich and famous might be frivolous when it comes to their shopping, but they’re very sensible when it comes to their charity work. Look at the people you admire or the big brands that you align with. Look at the charities that ex-presidents, global leaders, and even big-chain supermarkets donate to, and follow their donation patterns. These bigger names will usually be giving a lot more money than you can afford, so you know that they’ll have done their research.

Consider Impact

It’s all well and good looking at the media presence of a charity, but what you want to look at more closely is the impact that they are having. It’s easy for a charity to organize events and fundraisers, but if the money being raised isn’t going where it needs to be, then the impact is not going to be worth your donation. Look at the annual reports of your chosen charities, and even scrutinize the way they talk about their work on social media. You’ll be able to gauge their approach to their activities and whether they’re in it to make money or to do some good. Look especially at how a charity has evolved over time. Look for evidence that they are having the right level of impact.

Consider Mistakes Rationally

Nobody is immune from making a mistake on occasion, and that does extend to even your favorite charity. Even in recent years, there have been charities that have become known more for their scandals than their good work. When a charity makes a mistake but then owns up to it and takes steps to rectify and address that mistake, the more likely that your charity donation is going to be in safe hands. Don’t dismiss a charity because a CEO took some money from the coffers or they made a blunder on social media. If they admit and address mistakes, then you know that honesty is being valued, and that can only be a good sign.

Do Your Research

When you want your money to be doing the most good, it’s always smart to do some research. As well as reading the annual reports of your chosen charities, you should also follow them on their social platforms. Get to know those charities, what they do, and what they achieve. You don’t want to donate to a charity fighting for freedom if the bosses of that charity aren’t foreign policy experts that know how best to tackle that fight. Look at accountability pages or take the step to have a news alert set up should your chosen charities make the news. The more research you do, the more likely your cash will go where you want it to go.

Consider Admin Costs

There’s a stereotype that big charities aren’t worth giving money to because most of their cash donations go towards administration costs. While it makes sense that you want the majority of your donation to go towards frontline activities, admin is a vital component of any charity work. Every charity will have running costs and administration is one of those costs that simply can’t be avoided. Only the very smallest charities run by nothing but volunteers will have no admin expenses, and even then that can be a rarity. Charities need to be run and managed wisely, and money needs to be spent on ensuring that frontline workers have the support that they need. If core costs are not managed, then you end up with specialist members of the team wasting their skills on jobs they are ill-suited to. Ideally, you want to ensure that admin costs are around 10% to 15% of annual donations. Anything higher than that is a sign that the charity isn’t being run as efficiently as it could be.

Be of Value

Some charities are much more underfunded than others, and it’s those charities that need your help the most. The three most underfunded areas are those that are helping victims of domestic violence, refugees, and prisoners. Think about who you want your money to help and always donate more to those charities that are lacking funds. Big charities are great, but they don’t need your help as much as those smaller charities that are often overlooked. When you donate to those smaller organizations, your money is going to be much more likely to help the most vulnerable in society.

Volunteer

If you really want to get to know a charity then your best option is to do some volunteer work for them. Whether it’s handing out meals, collecting signatures in the street, or serving customers in a charity shop, you’ll find out everything you want to know about a charity by getting involved. You’ll be able to spot where things aren’t as efficient or as organized as they could be, but you’ll also be able to see the good that’s being done. Volunteering for a charity looks great on your work history too, and could improve your employability.

It’s natural to want to help others, and charities have become a vital lifeline for millions of people. Always take your time to do some basic research before handing over your hard-earned cash to a charity. The more that you know about where your money is going and how it is being used, the more likely that you’ll be donating to the charity that is doing the most to help those you want to help.