Everyone Wants My Money

If you are like me, in the last two months, you have likely been overwhelmed by requests for your donation to support various people and causes.  First there were the political campaigns leading up to Election Day.  Then, the benefits for Hurricane Sandy victims were on TV.  After that, Minnesotans were barraged with pleas from every nonprofit in the state for Give to the Max day.  Now come the holidays and the end-of-year fundraising pushes from your alma mater and every charity you’ve ever (or never) hear from before.  And don’t forget “Giving Tuesday” as a way to offset your Black Friday gluttony. 

Frankly, it’s been a little intense. 

I am a giver.  I want to give.  I’ve often said that I’d be the best rich person ever if I won the lottery because I’d happily write checks to all of my favorite nonprofits.  (I hear the Powerball is up to $500m, by the way). 

But in the cacophony of nonprofits and charities competing for your precious few donation dollars, how do you know whom you should support?  Here are a few tips to keep in mind during this season of giving.

1) Check the ratings

There are many organizations out there that rate nonprofits on a number of measures.  These ratings are good indicators of whether or not a nonprofit is reputable and whether or not it will use your donation wisely.  In Minnesota, you can check with the Charities Review Council.  Their website is at smartgivers.org  You’re a smart giver, right?  They give nonprofits a “Meets Standards” seal that you will often see on an organization’s website. It’s like the “Good Housekeeping” seal of approval for nonprofits.  You can also check out your favorite nonprofit on sites like Guidestar, Charitywatch, and Charity Navigator

2) Read the documentation

Most nonprofits publish annual reports that include their financial information.  They often send regular updates and/or newsletters as well.  Read through these documents so that you are fully informed about the work the nonprofit is doing with your donation, as well as their current organizational health.

3) Ask questions

Do not be afraid to call nonprofits that you want to support and ask for more information before you donate.  Most nonprofits will be happy to chat with a donor and might even ask you out for a coffee date!  If no one wants to chat with you, you may question the transparency of the organization and whether or not you really want to support it. 

4) If you’ve got it, give it.  Just be informed.

Happy holidays!