Due to a number of competing charity groups across the world, it has become difficult for one to decide the legitimate group for donation. This is because many times the donated amount is not spent properly due to monetary mismanagement or other issues.
One of the main problems with some groups is that they are unable to uphold low operating costs. In an ideal world, the charities should avoid spending above 25% of their earnings on operating costs. Make sure your charity goes for the cause you donated for, not just to administrators and fundraisers of that charity group.
In this era of economic recession many charity groups are in a dire need of new donors to support their causes. If you really feel you can donate some funds, this is the right time to take action as even a small donation can uplift a group. However before donating a check, you must make sure that each of your donated dollars is going for a worthy cause.
Below are some simple tips that will help you select the right charity group for donation
Tip 1: Check for the group's Legitimacy
In some cases, you may get to know that the charity group you are going to donate actually doesn't exist. In this scenario, you can get help from regulatory authorities that keep records of registered charity groups. Such authorities maintain an updated list of all the registered non-profit charities after verifying their credentials. This way, you can make sure the legitimacy of your chosen charity group.
Tip 2: Carry Out Your Own Research
In order to avoid charity scams you should ask some questions before sending money. If the charity group has a website then you can get significant details while carrying out some internet research on your own. However you should make sure that you have the exact name of charity group and its headquarters. Remember a legitimate charity group will willingly provide information about their operations, latest activities as well as financial information like income vs. expenditure.
Tip 3: Stay Involved
Stay involved even after giving the donation. Take part in the current events of the charity group you donated. This will help you ensure that your donation is utilized for the right cause.
Tip 4: Tax Deductibility
Ask the charity group if it is registered as a tax exempt group. If your charity is text deductable then always ask for a receipt that shows amount of your donation and the deductable amount.