Charity: For Goodness Sake

Charity: For Goodness Sake

There’s no shortage of good causes. These do the most with your dollars.

In days of yore, the clang of a coin or the drop of a dollar satisfied the conscience of most donors. Signing a check meant helping the have-nots. But charitable giving isn’t as straightforward anymore. A new provision of the tax law requires that donors have written acknowledgment for every gift over a determined sum if they intend to claim a deduction on their income tax form. Furthermore, you can’t be sure that your dollars are being put to good use – or, at least, the use that you intended. In recent years, numerous press and government reports exposing the scandalous practice of a few charities’ top dogs have left some almsgivers disillusioned.

The philanthropic fabric of the county remains strong, but knee-jerk donations are a thing of the past. Wary donors are demanding more information before pulling out their checkbooks. To make sure that your donations don’t end up lining the pockets of your favorite charity’s board of directors, you’ll need to do a little homework.

A good way to check up on the effectiveness of a charity is to zero in on how they are handling your funds. Managerial and fund-raising expenses invariably guzzle a god portion of charitable dollars. To feel confident that your offering is not consumed by high overhead costs, look to see if at least 60 percent of the revenues goes to programs. Although this yardstick may vary with the charity’s services, generally the higher the percentage of funds going to programs, the more efficient the charity and the more likely your offering reaches the intended recipients.

Yellow flower (iris), close up. Photo by Elena

Unfortunately, deciphering a charity’s financial documents can be painfully tedious (if you can even get a hold of them).

And if you do take the time to examine an annual report or IR form, neither one is likely to reveal potential skullduggery. Fortunately, there are watchdog groups out there evaluating the performance of charities for you.

Charity Begins With Your Budget

Put Your Money Where the Need Is

Each year, The NonProfit Times, a leading publication for nonprofit management, conducts an in-depth study of America’s leading charities to help people avoid giving in a willy-nilly manner. They are ranked according to how much of funding received is dedicated to programs. A look at a few stellar charities:

Human Services: Association for retarded citizen; American Red Cross; Salvation Army; Goodwill Industries Intl; Catholic Charities, USA.

Relief and Development (occurrence of natural disasters and world crises): Intl. Rescue Committee; Habitat for Humanity Intl; Christian Children’s Fund; Compassion International; Save the Children.

Conservation: National Wildlife Federation; Ducks Unlimited; The Nature Conservancy, World Wildlife Fund; National Audubon Society.

Health: United Cerebral Palsy Association; City of Hope; Muscular Dystrophy Association; National Easter Seal Society; American Heart Association.

Religion (support for organizations dedicated to transmitting spiritual values): Wycliffe Bible Translators; The Navigators; Campus Crusade for Christ; Focus on the Family; Billy Graham Evangelistic Association.