The Urban Institute reports that there are over 2.3 million non-profit organizations in the US and plenty of ways to support these groups. These four tips will help you become more informed about these organizations and make a financial contribution.
- Figure Out How You Are Contributing
Before making a financial contribution to a non-profit organization, you must identify the cause you’re supporting. For instance, if you’re planning on investing in a cancer organization, you should determine what activities you want to support. According to Sandra Miniutti, a vice president at Charity Navigator, an excellent way to find a good organization is by looking for one that does research.
- Research
While you are researching, these are some of the things you should be directly looking into.
-Financial Health
Miniutti also suggests that if you’re planning on supporting a large organization, the group must allocate at least 75 percent of its funds for programs and not more than 25 percent for administrative expenses.
-Accountability and Their Transparency
It would be best if you looked into the organization’s policies and procedures to ensure that it follows ethical practices.
Ensure that the organization you’re supporting doesn’t share your information with other groups. You can also donate anonymously if this is a concern for you.
-Results
According to Miniutti, it’s also essential to consider the various factors that affect the success of a non-profit organization. For instance, if you’re planning on supporting a local organization, you must regularly check its website and see how it’s doing.
- Be Discerning
Unfortunately, giving money to a charity over the phone is risky. According to Miniutti, some telemarketers will use the charity’s name to collect donations, a form of a for-profit business. Instead, it would help if you considered volunteering with a local non-profit organization, attending a webinar, reading blogs, and following groups on social media to learn more about their operations.
- Find the 501(c3) Charities
In-kind donations can help reduce your tax burden if you take advantage of the tax deduction for charitable contributions. However, if the organization you’re supporting isn’t a public charity or a 501(c3), then your gift may not be deductible. You can check the organization’s status through websites such as GuideStar and Charity Navigator. When it comes to philanthropy, Miniutti says that both the donors and the charities should be partners. “Reputable organizations welcome questions,” he says.