How to Give to Charity Without Getting Scammed

Guide Note: Giving to charity is always worthwhile, but how can you make sure you're giving to a worthwhile charity? Read on for Mahalo's advice on How to Give to Charity Without Getting Scammed.

Introduction

  • Perhaps you've received a windfall, and want to share some of it with those who are less fortunate. Maybe it's the holidays. Perhaps it's in memory of a lost relative. Whatever the reason, you've decided you want to give to charity. With at least 800,000 charities in the US, however, how do you pick one? And with so many stories about charity scams, how do you make sure you've picked one that's legitimate? This page will help you find a charity you can trust.

Step 1: Find a charity

Network for Good search function
Network for Good's search function
  • Not every charity is a good match for your donation desires. If you're a vegetarian, for example, it's unlikely you'll want to donate to Hunters For the Hungry, no matter how much you believe in feeding those in want. But with a million charities or more out there, it's very likely there's one that does exactly what you want. You just need to find it. Fortunately, the Internet is here to help!
  1. Go to Network For Good.
  2. In the upper left hand corner, you'll find a form headed "find any charity". Check the appropriate box: "I want to donate" or "I want to volunteer".
  3. Fill in any keywords you are specifically interested in (for example, "vegetarian", "refugee" or "blind").
  4. If you know the name of the charity you're interested in, type it under "Charity Name".
  5. If you are looking for a charity in a specific city or region, fill in the city, state and/or zip code fields.
  6. Under "Area of Interest", use the pull-down menu to select any specific areas of interest.
  7. Click "Search".
  8. You'll be presented with a list of charities fitting your criteria.
  9. If you'd like to learn more about a charity, click the button labeled "Research" under the charity name. You will find more specifics about what they do, and about their funding.

Step 2: Research the charity

  1. Go to Charity Navigator.
  2. In the field labeled "Charity Search", type the name of the organization you wish to search for.
  3. You will be given a list of organizations that match the name you entered.
    • Charity Navigator bases its information on IRS form 990, which is available from any non-religious charity upon request. This form lists the charity's financial information.
    • Religious organizations such as the Salvation Army do not need to file form 990. Some volunteer their financial information to Charity Navigator, but many do not and thus are not evaluated.
    • Charity Navigator also does not evaluate 501(c)(4) organizations, as not all donations to them are tax deductible.
  4. Each organization is given a star rating, from 0 to 4 stars.
    • Four stars means "exceptional".
    • Three stars means "good".
    • Two stars means "needs improvement".
    • One star means "poor".
    • No stars? "Exceptionally poor".
  5. If you want to narrow your results, use the sidebar on the left to filter by charity category, state, rating, size, and other factors.
  6. If you want more in-depth information on a charity, click on its name.
  7. You will see a sheet showing why it has received its rating, as well as other financial and background information, and, at the bottom of the page, a list of similar charities.
    • If the charity is spending more than 40% of its money on fundraising and administrative costs, it is probably not wise to donate to them.
  8. If the charity looks good, you can donate by using the "Donate Now through Network for Good" button in the left-hand column.
  9. If the charity is not listed with Charity Navigator, then call the charity directly to ask how much of the money you donate will be used for administrative purposes, instead of used to help the people you want to help.

Other charity research sites

  • JustGive.org: Find, research and donate with this site. It has more charities than Charity Navigator, but you must interpret any financials yourself.
  • Give.org: A list of national charities that meet the Better Business Bureau's standards for charitable organizations.
  • CharityChoices.com: Lists charities that are a part of the Combined Federal Campaign.
  • American Institute of Philanthropy: rates charities with letter grades, but paid membership is required to see most reviews.

Step 3: Protect yourself

  • Even if the charity looks legitimate, you should take several steps to protect yourself.
    Photo by Sophie
    Photo by Sophie
  1. If they want you to give money right this second, without giving you time to do research, they may not be trustworthy.
  2. If the person asking for your money wants you to make a check out to them instead of the named organization, don't give them money.
  3. Just because the organization is tax-exempt, does not mean your donation is automatically tax-deductible. If it is important that your donation be tax-deductible, ask first.
  4. Fraudulent organizations often have names very similar to legitimate ones. Make sure the organization you're donating to is the one you want to donate to!
  5. If you've received a phone call to request a donation, chances are the caller is being paid 25% to 95% of what they're obtaining. Most telemarketing for charity is a for-profit operation. If you like the charity, contact them and donate directly.
  6. Get a receipt. Keep a paper trail.
  7. Donate by check or credit card - it gives you another way to make sure your money went where you wanted it to go.

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