Americans are giving more to charity. In 2016, charitable giving by individuals increased by almost 4%. According to a survey conducted by Giving USA, over $280 billion was donated to charitable organizations.
The increasing number of people giving is a reflection of the country’s resilient philanthropy. The diverse motivations of donors also contributed to the growth of charitable giving.
One of the most important factors that donors consider when it comes to giving to charity is how their money is being spent. According to a survey conducted by US Trust, almost 90% of donors want to see that their donations are being used for the organization’s core mission.
Before you give to a charity, it’s important that you know how your money is being used responsibly. There are various resources that can help you make sure that your donations are being used properly.
Check the IRS
Before you give to a charity, make sure that it’s registered as a 501(c)3 organization. This type of organization allows the IRS to confirm that the charity is genuinely charitable.
You can also deduct the charitable contribution made by a charity if it’s registered as a qualified organization. This type of organization can be found in the IRS’ database.
Utilize Online Charity Reviews
One of the most important factors that you’ll want to consider when it comes to giving to charity is how much of your donations are going directly to the cause. Some organizations, such as the American Red Cross, use less than 10% of their budget for administrative expenses. Charity Navigator and GuideStar are two excellent resources where you can look up local charities, see budget breakdowns, and get overall ratings on their effectiveness.
Another important factor that’ll be considered when it comes to choosing a charity is how much of its budget is dedicated to fundraising and administration. This means that it’s important that the organization has an eye on how to maximize its donations.
If you’re a consumer, you might want to check out the complaints about the charity that you’re considering giving to. In today’s world, there are countless websites that allow users to review products and services. The Better Business Bureau is a great place to look, just keep in mind that you should use discretion when considering reviews. Some people may have unique situations that lead to bad experiences that are not representative of the charity as a whole! However, if there are a lot of complaints, especially about the same issues across multiple reviews, that might be a sign that you should look for a different organization to support.