Useful information to keep in mind when donating to a certain charity.

1. R Y A N K L A R B E R G
Tips to Decipher a
Charity's Legitimacy

2. Though never ideal, charity scams can often times be
more common than current or potential donors would
be comfortable coming to terms with. Familiarizing
yourself with the various governing bodies that check
up on and analyze how these charities operate is a
great first step to prevent giving away hard earned
dollars to organizations.

3. 1. The IRS Nonprofit Charities Database has a tool
called “The Exempt Organizations Select Check Tool”.
This tool allows you to enter the name of an
organization and see if the organization is exempt or
not, which is an important piece of information to know
before you donate anywhere. Please bear in mind If the
organization is not exempt, your donation will not be
tax-deductible.

4. 2. Charity Navigator rates charities based on their
financial health, accountability, and transparency to
guide individuals to make smart decisions throughout
the donation process. Evaluating over eight-thousand
charities, it is clear that this organization takes various
factors into consideration when producing
comprehensive guides for donors. On the off chance
that your charity is currently not on the list, be sure to
further investigate why this could be the case.

5. Though never ideal, charity scams can often times be
more common than current or potential donors would
be comfortable coming to terms with. Familiarizing
yourself with the various governing bodies that check
up on and analyze how these charities operate is a
great first step to prevent giving away hard earned
dollars to organizations.

6. 3. GuideStar keeps records of financial documents,
such as the 990, which help your current and
prospective volunteers evaluate the how legitimate an
organization is. The 990 document not only informs
donors of how the dollars are allocated, but also sheds
light on how the top or upper management officials
within the organization are compensated.

7. 4. Charity Watch rates charities on specific criteria
such as exposing any sort of abuse or misallocated
funds. While advice, articles, and basic information are
open to the public, a membership is required to have
access into specific charities’ internal structure, spending
habits, and other useful information to help you make
a decision.

8. 5. The BBB Wise Giving Alliance helps donors in evaluating
organizations on particular criteria. Among the twenty
standards, some that the organization focus their studies on
include oversight, effectiveness, finances, solicitations, and
informational materials. If said charity meets the necessary
requirements, the philanthropic body would actually earn a
point added to their profile. As the score is ranked out of
twenty, be sure to keep tabs on how your favorite charity
or charities are ranking.

9. What Donors Should Keep in
Mind:

10. -Be careful with giving your credit card number over the
phone or to an organization that only wants cash donations. If
said organization or charity only wants cash donations,
investigation is the best way to better understand this process.
-Keep in mind that charities do infact have administrative
costs and it is impossible if 100% of the proceeds go to the
cause directly.
-Trust your gut feeling, if a certain organization seems
strange or a little off, be sure to check up on the charity with
any of the governing bodies mentioned above.

11. -Avoid donating via text as much as you can. It is the
least secure way to give money to an organization or
charity.
-While donating dollars is always good, donating items
such as food, clothing, or other goods is also a
wonderful way to get involved with a charity.