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Looking to donate to a cause this holiday season but not sure which organizations you can trust? Charity Navigator offers the following tips for informed giving.
Be Proactive: Start by identifying which causes are important to you, and be specific about the impact you want your donation to have. Next, start putting together a list of charities that match your interests.
Research Before Giving: Narrow down your list of charities by researching. Make sure the charity you're considering is a bona fide, tax-exempt 501(c)(3) public charity. Examine the charity's finances to make sure they're in good standing. Ensure the charity is accountable and transparent.
Discuss Results And Impact: A charity's ability to bring about long-lasting change is the reason for their existence and your donation. So, before making a contribution, talk with the charity to learn about its accomplishments, goals and challenges. Such conversations will give you insight into how well the charity knows where it stands and where it plans to go.
Consider The Way You Give: Giving without strings attached (through unrestricted donations) provides the charity flexibility to respond to changing demands for its services. Create a budget for how much you can give. Understanding the tax benefits of giving and spacing out gifts during the year may boost your overall giving capacity.
Follow Your Investment: Follow up with the charity in six months to a year to find out how it's using your money. You're not looking for a list of itemized expenses but a progress report to give you a sense of how responsive it is to you and if it can clearly communicate its progress.