Do you ever wonder where your donations are really going? You want to be sure that the lion’s share of the money will go where it’s needed. Charities have different overhead costs, so it’s understandable you’d want to do a little digging before dipping into your pockets.
While your first thought is that you want to invest in a cause (and not line an executive’s pocket), note that overhead is not always the best measure of a charity’s performance. Overhead doesn’t necessarily tell us about an organization’s effectiveness or true impact. It’s smarter to use these indicators instead: transparency, leadership, and results.
Still, overhead can offer some insight in rooting out fraud and poor financial management. But one must consider other elements of the charity’s organizational performance to truly assess its character. It’s a good idea for organizations to invest some of their donations in areas that will help improve the functioning of their work: training, planning, evaluations, and more programs. Money is also needed for expenses that allow the charity to sustain itself.
According to Charity Navigator, charities are rated by their financial health and their accountability and transparency. Organizations that transcend these two elements of criteria are considered exceptional, reliable, and legitimate. In essence, this means the charity is the most responsible with its money.
These evaluations are based on the financial information each charity provides in its informational tax return, the IRS Form 990. The information is then analyzed in seven key areas that assess its financial efficiency and capacity, in relation to its cause. Charity Navigator also utilizes information available on the organization’s 990 and information collected from a review of the charity’s website. Seventeen different metrics are involved to assess its practices, governance, and ethics.
Below is a list of who made the cut. Let’s take a look:
North Carolina Community Foundation
San Gabriel Valley Habitat for Humanity United Way of Denton County
Hosanna/Faith Comes By Hearing Ramesh Richard Evangelism and Church Health
Sponsors for Educational Opportunity (SEO)
Arthritis National Research Foundation Community Volunteers in Medicine Give Kids The World Help Hope Live
Acton Institute for the Study of Religion and Liberty Equal Justice Initiative Physicians for Reproductive Health
Chattahoochee Riverkeeper
Conservation Foundation of the Gulf Coast Environmental and Energy Study Institute Rainforest Trust Southern Environmental Law Center Texas Parks and Wildlife Foundation Wild Earth Allies, Inc.
Army Emergency Relief Boca Helping Hands Boys & Girls Clubs of Indian River County Boys & Girls Clubs of Nassau County Foundation Central Illinois Foodbank Clark County Food Bank Community Food Bank of Eastern Oklahoma Eastern Illinois Foodbank Fisher House Foundation Food Bank of Siouxland
Big Cat Rescue
Greenville Humane Society Israel Guide Dog Center for the Blind Last Chance for Animals Nevada Humane Society PAWS Chicago Puppies Behind Bars WildAid Wildlife Conservation Network Zoo Miami Foundation
Forever Young Foundation
Hour Children Kostopulos Dream Foundation Lifesong for Orphans Memorial Assistance Ministries Navy SEAL Foundation New York Common Pantry River Bend Foodbank The Foodbank Toledo Northwestern Ohio Food Bank, Inc. Trenton Area Soup Kitchen Upper Valley Haven Weld Food Bank
Before making donations to any charity, keep these tips in mind:
- Report abuses to the Better Business Bureau.
- You are not obligated to donate with cash. Legitimate charities will always accept a check.
- Never give out your Social Security number!
- Check out the charity with national, state and local authorities. Established charities register with the Internal Revenue Service. You can search for specific non-profit organizations at IRS.gov.
Remember that donating small sums of money may not seem like much, but when combined with other donations, it becomes substantial. You may not be rich, but when you give, your heart will make you feel otherwise. As they say, “you have two hands: one to help yourself, the second to help others.”
