How to find a worthy charity

When it comes to helping people in need across the world, everyone would agree that charities play a prominent role in ensuring that money makes it to the causes that need it the most. Unfortunately, not all of those charities are created equal and some time should be spent determining which ones will spend those dollars responsibly.

According to Consumer Reports, for instance, most people assume that a charity’s name tells the whole story about what they are doing for the community they represent.

They use the example of the Disabled Veterans National Foundation. The name implies that they raise a lot of money to help veterans. In fact, less than one-third of the money brought into the organization goes into charitable programs while the rest is used for fundraising and overhead. This should alarm potential donors who think 100 percent of their donation will go towards helping the targeted group. One dollar turning into thirty cents is not an excellent deal in anybody’s book.

On the other side of the aisle, a charity called The Mission Continues spends nearly 90 percent of its money on charitable programs and only seven percent on fundraising. While most people tend to think of charities as all being the same, this kind of disparity sheds light on the fact that some are more efficient and ethical than others.

Although it might be impossible to find a great charity by name alone, Kiplinger suggests following a few best practices when it comes to giving. First, don’t fall victim to the charity with the loudest voice. Often, charities that employ telemarketers to solicit donations are spending the least amount of money on their cause. It is important for a person to figure out which causes resonate with them the most and then seek out charities that benefit them.

Secondly, research any charity thoroughly before giving to evaluate how it will handle the money. Charity watchdogs like Charity Navigator will have all of this information publicly displayed. A good rule of thumb is that the best charities spend at least 75 percent of their money on service and 25 percent or less on overhead. If a charity refuses to share this information, then they are probably not meeting these criteria.