Only support groups granted tax-exempt status under section 501(c) (3) of the IRS Code – and remember to take the tax deduction.
5) Check The Charity's Commitment To Donor's Rights
6) Obtain Copies Of Its Financial Records
Financial health is a strong indicator of the charity's performance. The most efficient charities spend at least 75 percent of their budget on programs and services and less than 25 percent on fundraising and administrative fees. Seek out charities that are able to grow their revenue, that continue to invest in their programs and that have some money saved for a rainy day.
7) Review Executive Compensation
Charities need to pay their top leaders a competitive salary in order to attract and retain the kind of talent needed to run a multi-million dollar organization and produce results. However, it's smart to benchmark it against similar-sized organizations engaged in similar work and located in the same region of the country.
8) Start A Dialogue To Investigate Its Programmatic Results
It takes some effort to assess a charity's programmatic impact, but it's worth the time. Talk with the charity to learn about its accomplishments, goals and challenges. Walk away from a charity that is unable or unwilling to participate in this conversation.
9) Concentrate Your Giving
If you've really taken the time to identify a well-run charity that is engaged in a cause that you are passionate about, you should then feel confident in giving it a donation.
10) Share Your Intentions And Make A Long-Term Commitment
Only with long-term, committed supporters can a charity be successful.