With the rapid rise of non-profit organizations and limited funds available to address people’s needs, competition for donations can be intense. Poor economic conditions can lead to demand for charities services at a time when their resources are shrinking and they are asked to do more with less.
All charities must spend money to cover overhead costs including costs associated with soliciting donations. Some charities will stuff your mailbox with fundraising appeals and use aggressive tactics to get your money. All this can leave you confused about which charities are worth for your contribution. Here are tricks to help you avoid charity frauds and scams.
Examine the Charity
Charities will always provide you with detailed information to interested donors. Never give your charitable donations to charityyou do not know. It’s important you request written literature and a copy of the annual charity report. This should include a list of board of directors, a mission statement and the recent audited financial statement with accompanying notes.
If a charity fails to provide you with detailed information you requested, you may want to think twice about giving. Honest charities will always encourage your interest and respond to your questions.
Find Out Where Your Dollars Go
It’s important you ask how much of your charitable donationsgoes to general administration and fundraising expenses and how much is left for the program services you want to support. Highly efficient charity programs are able to spend 75% or more on programs. It is important to note that newer groups and those working on less popular issues may find it necessary to spend a great percentage on fundraising.
It’s difficult to find out the exact percentage of money spent but you can always ask the representative to provide you with specific information. For charities that work locally, you may want to contact local organizations to ask if they work with or know about the charity.
Once you are satisfied about giving out, give generously. There are many good charities that need your help to operate valuable programs and provide needed services. When you give generously, you will be in a position to give more effectively. Make sure you identify a charity that is reputable and one you will trust with your donations. Keep looking for more tips on charitable donations so that it can be a simple task at all times.
