Charitable Donations: 5 Tips To Give Carefully

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Giving would never go out of style, which is why people are always looking for a way to make charitable donations. They are not only making these donations to feel good but because it was placed in their hearts. There was a need they felt they could meet.

Making charitable donations is terrific, but only if it gets to the hands of those who need them. There have been sad stories of donations going to the organizers of charity events or NGOs rather than the poor and needy.

How do you make most of your charitable donations and ensure it’s going to the right people? Here are some tips:

1. Confirm the organization

Before making charitable donations, you need to confirm if the charity organizers are legit unless you may be sending money to a fraud. Do this by checking Charity Navigator. This website will give you details of effective charities and their financial standing.

You will also get details of how they spend every dollar they receive, including the overhead cost.

They have over 160,000 charities on this website, so there is a possibility the details of the charity organization you are interested in is on the website.

You can also check the charity’s EIN information to ensure the organizer is legit, and because you might need it when filling out tax forms.

2. Consider donating locally

Look around your community and find a charity to give donations to. It’s easier to verify their effectiveness as you can see their works.

In local charities, you can decide to provide other things aside from money like food, clothes, shoes, etc. They need these things more.

You can also check if your friends or family are hosting any charity events where you can donate or help out. Then there is also the church. If you are a Christian, you can donate to when they need items to take to orphanages.

3. Make charitable donations directly

If you are fond of giving donations to charities that hire fundraisers, you might want to change your technique. You can give it to the organizers yourself.

Most fundraisers may charge a fee that takes up to 50% of the entire donations. This means half your donations will go to the fundraiser and not the charity that needs it to care for the needy. It would serve everyone if you donated directly.

Get the information of the charity organization and make your donations.

4. Avoid scammers

There are lots of fraudulent people posing as charity organizations to dupe unsuspecting people of their money. Some may even go as far as getting an identical name with a popular charity organization to get people to trust them. Some claim to be collecting disaster relief donations.

You need to be smart so you don’t waste your hard-earned money on greedy people. First of all, ignore unsolicited calls from people asking for money.

Secondly, check the official website of every organization, then you find the means to donate directly.

5. Ensure charitable donations are tax exempt

Charitable donations come with an opportunity of tax deduction, up to 50% of your income. However, you may want to check the status of the charity you are donating if it’s tax-exempt.

You can check IRS for tax-exempt organizations to know for sure you’re contributing to a charity that will permit tax deductions. All legit organizations should be eligible for exemption. You will also need to save the donation receipts as it’s essential when filing your tax.


It’s necessary to go through the checks and balances before making any charitable donations. At least you’ll ensure that those that really need the charity are getting it.

Do you know how to manage your money efficiently? Check out some of our money management tips.