With just a couple clicks, you can do lots to ensure your donations aren’t wasted.
One of the reasons I created this blog in the first place was to ensure responsible charity donations through informative articles. Forbes has a great article on things to verify when you’re donating, and I’d encourage you to check it out. Read about it here and check out my thoughts on it below.
It’s a fact that some overhead is necessary for a charity to effectively function, but like many things in life, there’s a balance. Overhead costs are perhaps the most important thing to inspect on any charity, because it suggests how much of what you donate will actually to towards helping the cause. A ratio of 75% to 25% is ideal, but will vary depending on the charity. Ask yourself how much you’re willing to spend in order to donate. Even if faced with high overhead costs you may feel strongly enough to contribute anyway.
Second, The IRS has a good check tool you can use to see if a charity is valid. Legitimate charities are required to submit a variety of nonprofit forms in order to be considered charity status. If you’re considering donating to someone, look them up first <here>. If the nonprofit organization you’re interested in isn’t found through the IRS, you may want to ask them why that’s the case.
‘Trust but verify’ is a good doctrine to adopt as usual. The vast majority of charities out there are good intentioned and won’t abuse your money. But, with these two simple precautions you can reduce a lot of the remaining risk with little effort. Remember, low overhead costs with IRS documentation is the way to go when donating.