A few days ago, I posted on Five Smart Ways to Give and I wanted to follow that up with a Money magazine article I found titled Donating to Charity -- 5 Tips: How to Make Your Donation Go Far. Money's suggestions:
1. Find specialized charities -- If you really want to impact the work of a specific cause, find an organization which is solely devoted to the cause -- not one that addresses several causes of which yours is one.
2. Bring on the paperwork -- We usually try to cut down on the amount of paperwork we get, but when it comes down to donating to a charity, the more written info, the better. Charities by law must give information to potential donors. Request a copy of the charity's latest annual report. Never give to a charity you know nothing about. This annual report should have a list of the board of directors, a mission statement and the most recent financial statements.
3. Follow the money trail -- The American Institute of Philanthropy recommends that at least 60 percent of your donation should go to the cause you want to sponsor. The remaining percentage can be doled out to other organizational costs. (FYI, I recommend 70% go to the cause.)
4. Hang up on telemarketers -- If a company does resort to telemarketing, it's usually a sign that your charity organization has some serious priority flaws. Telemarketers also may try to pressure you into making a decision. While getting junk mail is generally unpleasant, it does give the donor time to think about the organization and whether or not to pledge money. It's much less expensive and less intrusive.
5. Beware of scammers -- Scam artists create bogus fund-raising operations. Watch out for companies that have sound-alike names. There are hundreds of organizations that have word "cancer" in the title and there are thousands of organizations that are associated with doing charitable work with children because of their charity name. Not all of these are legitimate.
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