5 tips for making effective charitable donations
You may make charitable donations due to several reasons. It might be your belief system where you value giving to others as part of a spiritual or moral obligation. Or you may want to donate to make a difference and work towards problem-solving in your community. For some, it is a financially sound way to get tax exemptions, although the reasons for giving could be anything. Here are some tips to make effective charitable donations.
Know how to look for reliable charitable organizations
When looking for top charities to donate to, you must ensure they are reliable and trustworthy. You don’t want the money you donated with good intentions going down the drain. An excellent way to search for reputable charities is through Give.org, which Better Business Bureau runs. Here you will find information about program expenses, administrative costs, and all financials of registered charitable organizations nationwide. You can also check the legibility of an organization through IRS’s Tax Exempt Organization Search. The directory will help you to know whether the charity is eligible to get tax-deductible contributions from donors.
Volunteer with organizations to know them better
If you plan to donate significant charity to a single organization, you must know its ethos. You can do this by observing how they work through close quarters. Simply sign up as a volunteer for any of their activities and events. This will allow you to know the people behind the organization, their principles, and their culture. You will better understand whether your donations will genuinely help the cause.
Monitor your donations
You will only feel good about giving when assured that it is effective. You can ensure this by evaluating and monitoring your donations. Set aside time periodically to review all the charities you have donated. You can check their tax returns, annual impact reports, official websites, and blogs. Most top charities have all of these open for public inspection.
Chalk up a strategy to donate to relatable causes
When deciding how much of your finances you can contribute to charity, you must formulate a strategy. To do this, you need to determine your values and passions. You need to know what organizations you believe in or what problems in your community can be solved. A part of your giving needs to contribute to these. For example, if rehabilitating and re-homing abandoned pets is a cause close to your heart, you may consider donating to charitable organizations that work with such animals.
Follow a top-down approach when deciding how much to donate
Once you have figured out the causes to which you would like to make charitable donations, you need to think about how much you want to give every year. You can follow a top-down strategy. For example, you want to contribute to several causes. Start by prioritizing which cause is more important to you. Contribute a significant chunk of your donations to this cause. Go on lowering the percentage of your donations as you go down on the priority of the cause.