Is your charity charitable?

There are millions of charities that want yours. How can you determine which ones are worth your money? How do you know which ones are legitimate?

If you haven’t already, you’ll be getting a ton of phone calls from many worthwhile (and not-so-worthy) causes that need your money. Even more applications will arrive in the mail. And occasionally, someone will show up at your door looking for a donation.

First, remember that you can’t do everything. Don’t succumb to a sales pitch. Many charities hire professional fundraisers who are very skilled at getting your money. So before you donate to any charity, first determine your values. How much of your budget do you think is right to give to charity?

Next, look at your preferences. You know how much you can give; Now look at what types of organizations you want to support. From GuideStar.com (more on them later), I had several questions to ask yourself:

• “What is important to me?” Do you want to focus on the environment, education, hunger, animals, orphans?
• “Where should charity do its work?” Do you want to focus on local initiatives or more global causes?
• “What kind of charity do I want to support?” Do you want a big old one that is highly organized with decades of examples of his work? Or do you prefer a newer, smaller charity that is a bit more nimble and cutting-edge, but still not fully focused?

By answering these questions, you can start your research and choose the charities you want to support. Keep the process in mind: you choose the charities…don’t wait for charities to call, write or visit and choose you. When they do, and if they match your criteria, you can investigate to see if you want to add them to your donation list.

How do you do that research? There are many websites that contain data on charities. At Guidestar.org after registering (for free) you can search for a charity and get your Form 990. That’s your annual return with the IRS. Here you can see your income and expenses, including how much money goes to programs, staff, and fundraising activities.

Another great source is the Better Business Bureau. The BBB manages the Give.org website, the home of the BBB Wise Giving Alliance. By selecting “Charity Reports”, you can search thousands of charities. The BBB does not assess the worth of any particular charity, but instead looks to see if it meets 20 accountability standards.

None of the sites list all legitimate charities, but it’s a start.

In any case, when you decide who you want to support:

• Put it in your budget (even if it’s a piggy bank on the coffee table),
• Make your check payable to the charity, not the collector
• Don’t give cash (it’s ok, you can leave some money in the red buckets)
• Review your preferences, charities, and budget each year to make sure they still align with your values.

Most charitable giving begins with an emotional tug at the heart. There is nothing wrong in it. It means you are human. Just temper it with research, logic, patience, and purpose.