A lot of people who want to give to worthy organizations have questions about determining whether a charity is worthy of their hard earned money. Making those decisions involves a bit of research and a thoughtful approach. A “worthy” charity is generally one that is effective, transparent, and financially responsible, and whose mission aligns with your personal values.
Here’s a breakdown of how you can evaluate a charity:
- Use Online Charity Watchdog Organizations
The easiest way to start is by checking with independent charity evaluators. These organizations do the heavy lifting for you by analyzing charities’ financial health, accountability, and transparency. Some of the best ones to use are Charity Navigator, CharityWatch, Candid, and BBB Wise Giving Alliance. Most of them have financial reports, data, and provide details information about individual charities.
- Look at Financial Health and Transparency
A trustworthy charity is open about its finances and uses its money wisely. Make sure that the charity doesn’t spend more on administrative and fundraising costs than its programs.
Look for audited financial statements: For larger organizations, an independent audit provides a more accurate picture of financial health and accountability.
- Evaluate the Charity’s Effectiveness and Impact
Beyond just finances, an effective charity demonstrates that it is actually making a difference.
An effective charity has a well-defined purpose and is not spread too thin across multiple, unrelated causes. They should be able to clearly communicate what problem they are trying to solve and how their programs address it. It also has measurable results and strong leadership. The charity’s leadership should be passionate and committed to the cause.
- Personal Due Diligence
Even with all the tools available, a little personal investigation goes a long way. Check the website of the charity that you’re considering. Read reviews and ask questions. A trustworthy organization will be open and willing to answer your concerns.
You can do your own due diligence and get good results. It is in your best interest to do so before you give.
