When we feel compelled to give to a charity, it’s often because we are moved by their mission. But how do we know it’s wise to give to an organization? The problem is that many people are shy about giving, uncertain that the charity will be untrustworthy, or concerned they won’t use the money wisely.
Vetting a charity is necessary to ensure your donation is used honestly. Fortunately, it isn’t as hard as you might think. The time it takes will be worth it in the end, especially if you plan to donate regularly.
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Here are five ways that will ensure your donation is used as you intend:
Check the Charity’s Registered Information
One of the first things to do when vetting a charity is to check the information the charity has registered with a governing body. You can do this with the IRS or the Canadian Revenue Agency for charities in the United States and Canada, respectively. This ensures that the charity is registered to collect money and gives you a good idea of their background.
GuideStar and Charity Navigator are two great resources for up-to-date nonprofit data!
Contact the Charity
This may seem like an odd one, but it can really help to find out more about the charity you are considering giving to. Contacting them allows you to ask questions such as how long they have been around, who is running the charity, their mission, and goals, who they are helping, etc. A conversation can help instill trust and verify the information on their website.
Check Out the Charity’s Finances
One of the most important aspects of vetting a charity is to check out its financial history and goals. You want to see how the money is being spent and where it is being allocated. In addition, looking at their financial record will give you a better idea of how the charity operates and how consistent they are with finances. Every nonprofit organization should have a 990 available for public viewing.
Ask Around
Another great way to vet a charity is to ask trusted people around you. There could be people in your close circle that serve on boards or regularly donate to an organization. They will have more insight for you to consider before you commit to giving to a charity.
Check Out the Charity’s Mission and Impact
Is their mission something that you are passionate about? Are they helping a cause that you feel needs attention in the world? Take a deeper dive into their impact report to see what they are actually accomplishing with their funds. You want to choose an organization that’s achieving its milestones and making a difference in the area you’re passionate about.
Securing Your Impact
When it comes to finding a charity to support, it is important to do your research to ensure that your money is going to a worthy cause. There are many ways to vet a charity before giving them donations, from vetting their finances to the impact they’ve seen in their work. Finding a charity that you feel passionate about and trust to use your money wisely makes giving easy, as you know your money is making a difference in the world.
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